Study Results from University of Lyon Update Understanding of Applied Probability Research (Epidemic Risk And Insurance Coverage)

Science Letter

By a News Reporter-Staff News Editor at Science Letter -- New research on Mathematics - Applied Probability Research is the subject of a report. According to news reporting originating from Lyon, France, by NewsRx correspondents, research stated, "In this paper we aim to apply simple actuarial methods to build an insurance plan protecting against an epidemic risk in a population. The studied model is an extended SIR epidemic in which the removal and infection rates may depend on the number of registered removals."

Our news editors obtained a quote from the research from the University of Lyon, "The costs due to the epidemic are measured through the expected epidemic size and infectivity time. The premiums received during the epidemic outbreak are measured through the expected susceptibility time. Using martingale arguments, a method by recursion is developed to calculate the cost components and the corresponding premium levels in this extended epidemic model."

According to the news editors, the research concluded: "Some numerical examples illustrate the effect of removals and the premium calculation in an insurance plan."

For more information on this research see: Epidemic Risk And Insurance Coverage. Journal of Applied Probability, 2017;54(1):286-303. Journal of Applied Probability can be contacted at: Cambridge Univ Press, Edinburgh Bldg, Shaftesbury Rd, CB2 8RU Cambridge, England (see also Mathematics - Applied Probability Research).

The news editors report that additional information may be obtained by contacting C. Lefevre, University of Lyon, ISFA, F-69007 Lyon, France. Additional authors for this research include P. Picard and M. Simon.