Design and financial analysis of a health insurance based on an SIH-type epidemic model
Volume 38, Issue 2, pp 160--178
https://dx.doi.org/10.22436/jmcs.038.02.02
Publication Date: December 10, 2024
Submission Date: June 03, 2024
Revision Date: September 05, 2024
Accteptance Date: October 23, 2024
Authors
J. Hoseana
- Center for Mathematics and Society, Faculty of Science, Parahyangan Catholic University, Bandung 40141, Indonesia.
F. Kusnadi
- Center for Mathematics and Society, Faculty of Science, Parahyangan Catholic University, Bandung 40141, Indonesia.
G. Stephanie
- Center for Mathematics and Society, Faculty of Science, Parahyangan Catholic University, Bandung 40141, Indonesia.
L. Loanardo
- Center for Mathematics and Society, Faculty of Science, Parahyangan Catholic University, Bandung 40141, Indonesia.
C. Wijaya
- Center for Mathematics and Society, Faculty of Science, Parahyangan Catholic University, Bandung 40141, Indonesia.
Abstract
We present a design and financial analysis of a health insurance based on an SIH-type epidemic model. Specifically, we first construct the model in a continuous form, study its dynamical properties, and formulate the financial quantities involved in our insurance. Subsequently, we discretise the model using the forward Euler method, study the dynamical properties of the resulting discrete model, and formulate discrete analogues of the above financial quantities. We conduct a numerical simulation using two sets of parameter values, each representing a disease-free and an endemic scenario, which reveals that in the latter scenario, the insurance's gross premium is higher, the insurer's minimum loss-preventing start-up capital is lower, and the insurer's total profit is higher, compared to the corresponding values in the former scenario. Finally, through a sensitivity analysis, we show that in both scenarios, the disease's basic reproduction number, the gross premium, the minimum start-up capital, and the total profit are most sensitive to the following parameters: the population's natural death coefficient, the disease's incidence coefficient, the hospitalization benefit, and the percentage of the premium surcharge allocated to profit, respectively.
Share and Cite
ISRP Style
J. Hoseana, F. Kusnadi, G. Stephanie, L. Loanardo, C. Wijaya, Design and financial analysis of a health insurance based on an SIH-type epidemic model, Journal of Mathematics and Computer Science, 38 (2025), no. 2, 160--178
AMA Style
Hoseana J., Kusnadi F., Stephanie G., Loanardo L., Wijaya C., Design and financial analysis of a health insurance based on an SIH-type epidemic model. J Math Comput SCI-JM. (2025); 38(2):160--178
Chicago/Turabian Style
Hoseana, J., Kusnadi, F., Stephanie, G., Loanardo, L., Wijaya, C.. "Design and financial analysis of a health insurance based on an SIH-type epidemic model." Journal of Mathematics and Computer Science, 38, no. 2 (2025): 160--178
Keywords
- Health insurance
- epidemic model
- premium
- basic reproduction number
- sensitivity analysis
MSC
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