Recent Studies from Ludong University Add New Data to Computational Mathematics (Influence of Precaution and Dynamic Post-indemnity Based Insurance Policy On Controlling the Propagation of Epidemic Security Risks In Networks)

2021 MAR 02 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx Policy and Law Daily -- Investigators publish new report on Mathematics - Computational Mathematics. According to news originating from Yantai, People’s Republic of China, by NewsRx correspondents, research stated, “This paper studies how the purchase of insurance policies against epidemic security risks, a voluntary strategy of individuals, impacts the controlling of epidemic security risk propagation in networks and the profit of the insurer. For this purpose, we first formulated a modified agent-based framework that characterizes the coupled dynamics of individual security-protection investment behaviors and epidemic security risk propagation process, to study the effectiveness of insurance policies.”

Financial supporters for this research include National Natural Science Foundation of China (NSFC), Natural Science Foundation of Zhejiang Province.

Our news journalists obtained a quote from the research from Ludong University, “Second, we proposed a novel insurance policy that follows the designed ‘precaution and dynamic post-indemnity’ (PDPI) principle, taking the correlated and interdependent characteristics of epidemic security risks into account. We determined how the PDPI insurance policy affects security-protection investment coverage and epidemiological dynamics by tuning the allocation coefficient of insurance funds alpha and the ratio between the premium and the cost of investment R. The results indicated that, although insurance policies have negative influences on voluntary investment behaviors, the risk propagation can be controlled effectively by appropriate combination of alpha and R , because the precaution mechanism in the PDPI insurance policy can counteract this side effect by guaranteeing the security-protection investment coverage among insured individuals with larger degrees. We further found that, although the insurance policy cannot lead to the maximal profit when the policy has the best performance on risk propagation prevent, the insurer still can earn positive profits. Finally, some effective PDPI insurance policies against specific investment costs are given.”

According to the news editors, the research concluded: “The models and findings shed new and meaningful insights into designing and measuring effective insurance policies associated with security-protection investment in controlling the propagation of epidemic security risks.”

This research has been peer-reviewed.

For more information on this research see: Influence of Precaution and Dynamic Post-indemnity Based Insurance Policy On Controlling the Propagation of Epidemic Security Risks In Networks. Applied Mathematics and Computation, 2021;392. Applied Mathematics and Computation can be contacted at: Elsevier Science Inc, Ste 800, 230 Park Ave, New York, NY 10169, USA. (Elsevier - www.elsevier.com; Applied Mathematics and Computation - http://www.journals.elsevier.com/applied-mathematics-and-computation/)

The news correspondents report that additional information may be obtained from Guang-Hai Cui, Ludong University, School of Information & Electrical Engineering, Yantai 264025, People’s Republic of China. Additional authors for this research include Zhi-Wang Zhang, Zhen Wang, Xing Jin and Jun-Li Li.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.amc.2020.125720. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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