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

  • Share on Facebook
  • Share on X
  • Share on LinkedIn
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


MSC


References