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 also
helps enable greater efficiency. Second, credit swap hedging adversely affects the
policyholder protection, and leads to increase 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.
關聯:
International Review of Economics & Finance 80, p.266-281
