Research Reports from Department of Banking and Finance Provide New Insights into History (The impact of war on insurer safety: a contingent claim model analysis): Global Views – History

2023 OCT 23 (NewsRx) -- By a News Reporter-Staff News Editor at Politics, Law & Government Daily -- A new study on history is now available. According to news reporting from the Department of Banking and Finance by NewsRx journalists, research stated, “Determining the optimal guaranteed rate of life insurance policies can effectively promote sustainable societies and disaster-resilient communities in times of war.”

Our news journalists obtained a quote from the research from Department of Banking and Finance: “Nevertheless, such strategic coverage remains uncommon in many countries. This article presents a capped-down-and-out call option model to assess life insurers’ safety during conflicts. Wars may lead to reduced life insurance businesses due to lower guaranteed rates set by insurers, yet they can also improve insurer safety within an imperfectly competitive insurance market. By increasing the surrender rate of the policy associated with reducing the optimal guarantee rate, the insurer’s security is improved, thereby contributing to the stability of the overall insurance.”

According to the news reporters, the research concluded: “Our findings suggest setting guaranteed rates is critical to asset-liability matching management, especially in wartime, to maintain insurance stability.”

For more information on this research see: The impact of war on insurer safety: a contingent claim model analysis. Humanities & Social Sciences Communications, 2023,10(1):1-6. The publisher for Humanities & Social Sciences Communications is Springer Nature.

A free version of this journal article is available at https://doi.org/10.1057/s41599-023-02191-y.

Our news editors report that additional information may be obtained by contacting Fu-Wei Huang, Department of Banking and Finance, CTBC Business School. Additional authors for this research include Panpan Lin, Jyh-Horng Lin, Ching-Hui Chang.

(Our reports deliver fact-based news of research and discoveries from around the world.)