This paper studies an <InlineEquation ID="IEq1"> <EquationSource Format="TEX">\({\textbf {SEQIDRS}}\)</EquationSource> </InlineEquation> disease model design for healthcare insurance with quarantine, infection and death policies. An interface between three fundamental fields: epidemiology, actuarial science and insurance is determined. In this paper, we consider policy holders (PHs) who are exposed to four background risks: risk of being exposed to the underwritten disease, risk of being quarantine, risk of infection and death risk. The insurance contract is underwritten primarily for the susceptible, exposed and recovered individuals who chooses to continue with the insurance contract. The susceptible constantly face the risk of being exposed to the disease, the exposed face the risk of being infected and quarantined, the quarantined PHs face the risks of being infected by the disease, while the infected PHs faces the risks of death due to the disease. Furthermore, the probability function of a PH to remain susceptible under the <InlineEquation ID="IEq2"> <EquationSource Format="TEX">\({\textbf {SEQIDRS}}\)</EquationSource> </InlineEquation> disease model is studied, in this paper. As a result, we obtain, for the insurance contract, the probability density function and cumulative distribution function under the <InlineEquation ID="IEq3"> <EquationSource Format="TEX">\({\textbf {SEQIDRS}}\)</EquationSource> </InlineEquation> disease model. By the application of the actuarial science techniques, we determine both theoretically and empirically, the parties’ insurance financial obligations, the insurance quantities, the cumulative reserves for annuities and the benefit lump sum plans. We found that taking more insurance policies, will lead to decrease in cumulative reserve and quantum premiums payable by PHs, and increase benefit claims payable to PHs over time. The premium adjustment of the plans for the insured is also considered.Practical Applications Summary: This paper is practically applicable in health insurance scheme for infectious diseases with quarantined, infection and death policies. It will help the stakeholders to understand the effective management and the nature of insurance premiums payable and insurance claims receivable by (i) quarantined PHs who are exposed to financial losses, psychological challenges and loss of job as a result of being quarantined for the underwritten disease; (ii) infected PHs for hospitalization; and (iii) dead PHs over time.

On Actuarial Analysis of Epidemiological Model for Healthcare Insurance with Quarantine Policy: The Theoretical and Empirical Studies

期刊论文
发表日期：

2025年9月23日

查看全文

Charles. I. Nkeki,
Chiedozie. B. Ibe

摘要

This paper studies an \({\textbf {SEQIDRS}}\) disease model design for healthcare insurance with quarantine, infection and death policies. An interface between three fundamental fields: epidemiology, actuarial science and insurance is determined. In this paper, we consider policy holders (PHs) who are exposed to four background risks: risk of being exposed to the underwritten disease, risk of being quarantine, risk of infection and death risk. The insurance contract is underwritten primarily for the susceptible, exposed and recovered individuals who chooses to continue with the insurance contract. The susceptible constantly face the risk of being exposed to the disease, the exposed face the risk of being infected and quarantined, the quarantined PHs face the risks of being infected by the disease, while the infected PHs faces the risks of death due to the disease. Furthermore, the probability function of a PH to remain susceptible under the \({\textbf {SEQIDRS}}\) disease model is studied, in this paper. As a result, we obtain, for the insurance contract, the probability density function and cumulative distribution function under the \({\textbf {SEQIDRS}}\) disease model. By the application of the actuarial science techniques, we determine both theoretically and empirically, the parties’ insurance financial obligations, the insurance quantities, the cumulative reserves for annuities and the benefit lump sum plans. We found that taking more insurance policies, will lead to decrease in cumulative reserve and quantum premiums payable by PHs, and increase benefit claims payable to PHs over time. The premium adjustment of the plans for the insured is also considered.

Practical Applications Summary: This paper is practically applicable in health insurance scheme for infectious diseases with quarantined, infection and death policies. It will help the stakeholders to understand the effective management and the nature of insurance premiums payable and insurance claims receivable by (i) quarantined PHs who are exposed to financial losses, psychological challenges and loss of job as a result of being quarantined for the underwritten disease; (ii) infected PHs for hospitalization; and (iii) dead PHs over time.