Effects of Cap-and-Trade Mechanism and Financial Gray Rhino Threats on Insurer Performance

This paper develops a capped barrier option model to examine how a cap-and-trade mechanism affects an insurer’s guaranteed rate-setting behavior and policyholder protection in a financial gray rhino environment. Toward sustainability, the insurer explicitly captures the credit risk from the borrowin...

Full description

Bibliographic Details

Published in:	Energies
Main Authors:	Shi Chen, Fu-Wei Huang, Jyh-Horng Lin
Format:	Article
Language:	English
Published:	MDPI AG 2022-07-01
Subjects:	cap-and-trade capped barrier option model financial gray rhino policyholder protection policy loans
Online Access:	https://www.mdpi.com/1996-1073/15/15/5506