Infectious Disease Insurance Pricing

Infectious disease is one of the most serious public health security accidents affecting a country or even the world.Once the disease occurs,it will bring a double burden to the people,both physically and financially.Insurance will take the role as a tool for diversifying risks.This article studies the design of infectious disease insurance products and measure their premiums.In the process of research,the SEIR model of epidemic dynamics is used as the theoretical basis,extended to the improved SESqEqIR model in line with 2022 prevention and control policies,SEAIR model applicable to the current prevention and control policies,and the SEI1I2 QR model describing the future situation.The model is based on Covid-19 data The main parameters selected from the fitting of the Covid-19 data of Hong Kong in 2022,and other parameters’ values were set referred to the article published by Tang B in 2019.This paper further fits three models with the selected parameters,to predict the trend of population in different compartments for one year.Based on the data fit,this article designs epidemic infectious diseases insurance products which cover the Covid-19 risk,providing the accident insurance products with additional liability and the separate epidemic insurance products.The insurance products design can be generalized to any other epidemic infectious diseases with similar infectious trends.Finally,it compares the designed products and analyzes their feasibility and value.