Epidemiological and Health Insurance Models for a Communicable Disease

Abstract

This paper considers an epidemiological model, referred to as SEIDRS disease model design for a communicable disease insurance policy. Epidemiologically, the individual population has five demographic groups, which includes: susceptibles (S), exposed (E), infectives undergoing treatments (I), infectives but dead (D) and (R) infectives but recovered from the communicable disease as stipulated in the insurance policy. The latter rejoined the susceptible group and then, continues with the insurance company by paying premium until such insured becomes infected again. The class of infectives comprises a union of those groups that are under treatment and the dead policy holders (PHs). The susceptible and exposed individuals constantly face the risks of being infected by the disease, while the infective class faces the risks of death resulting from the disease. Again, the probability function of a PH to remain susceptible under the SEIDRS disease model is considered, in this paper. Consequently, we obtain, for the insurance policy, the probability density function and cumulative distribution function under the SEIDRS disease model. Using the actuarial principles and techniques, we determine the parties’ insurance financial obligations as well as the insurance quantities. Some empirical results arising from the model analyses, in this paper are considered.