Feng, Runhuan and Garrido, José
Actuarial Applications of Epidemiological Models.
Concordia University. Department of Mathematics & Statistics, Montreal, Quebec.
- Published Version
The risk of a global avian flu or influenza A (H1N1) pandemic, and the emergence of the worldwide SARS epidemic in 2002–03 have led to a revived interest in the study
of infectious diseases. Mathematical models have become important tools in analyzing the transmission dynamics and in measuring the effectiveness of controlling strategies.
Research on infectious diseases in the actuarial literature only goes so far as to set up epidemiological models which better reflect the transmission dynamics. This paper
attempts to build a bridge between epidemiological and actuarial modeling and set up an actuarial model which provides financial arrangements to cover the expenses
resulting from the medical treatments of infectious diseases.
Based on classical epidemiological compartment models, the first part of this paper proposes insurance policies and models to quantify the risk of infection and formulates
financial arrangements, between an insurer and insureds, using actuarial methodology. For practical purposes, the second part employs a variety of numerical methods to
calculate premiums and reserves. The last part illustrates the methods by designing insurance products for two well known epidemics: the Great Plague in England and the SARS epidemic in Hong Kong.
|Divisions:||Concordia University > Faculty of Arts and Science > Mathematics and Statistics|
|Item Type:||Monograph (Technical Report)|
|Authors:||Feng, Runhuan and Garrido, José|
|Series Name:||Department of Mathematics & Statistics. Technical Report No. 6/08|
Authors:||Concordia University. Department of Mathematics & Statistics|
|Keywords:||epidemiological compartment models; SIR model; actuarial mathematics; infectious diseases; health insurance; Runge–Kutta method; ratemaking; reserves.|
|Deposited On:||02 Jun 2010 16:02|
|Last Modified:||04 Nov 2016 22:58|
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