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COVID-19, insurer board utility, and capital regulation

This paper develops a down-and-out call option model by introducing a structural break in volatility to capture the coronavirus (COVID-19) outbreak. The life insurer's equity and its board's utility are evaluated at the optimal guaranteed rate in the equity maximization. Results suggest th...

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Bibliographic Details
Published in:Financ Res Lett
Main Authors: Li, Xuelian, Lin, Panpan, Lin, Jyh-Horng
Format: Artigo
Language:Inglês
Published: Elsevier Inc. 2020
Subjects:
Online Access:https://ncbi.nlm.nih.gov/pmc/articles/PMC7299873/
https://ncbi.nlm.nih.gov/pubmed/32837371
https://ncbi.nlm.nih.govhttp://dx.doi.org/10.1016/j.frl.2020.101659
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