Could we rely on credit swap hedging as a substitute for insurer blockchain technology involvement?

【Author】 Lin, Jyh-Horng; Li, Xuelian; Lin, Panpan

【Source】INTERNATIONAL REVIEW OF ECONOMICS & FINANCE

【影响因子】3.399

【Abstract】Could we rely on credit swap hedging as a substitute for insurer blockchain technology involvement? This paper is to develop a two-stage contingent claim model to answer the question. We have three main results. First, blockchain helps the policyholder protection when blockchain involvement is relatively large-scale, helps the insurer's survival probability when blockchain involvement is relatively small-scale and helps enable greater efficiency. Second, credit swap hedging adversely affects policyholder protection and increases a higher likelihood of insurer survival. The life insurance company could regard credit swap hedging as a strategic substitute for blockchain involvement. Third, capital regulation makes the insurer more prone to blockchain involvement, thereby accelerating the transformation of the insurance system.

【Keywords】Blockchain technology; Credit swap hedging; Life insurance policy; Technology efficiency

【发表时间】2022 JUL

【收录时间】2022-04-27

【文献类型】理论性文章

【主题类别】

区块链治理-市场治理-