Insurance design for the loss of epidemic outbreaks involving Cramér–Lundberg model

Abstract

A simple model of the insurance coverage for the damage of COVID-19 is introduced. Concerning the estimation of the numbers of patients and/or deaths, we employ the Cramér–Lundberg model for the risk process, which is combined with the discrete SIR model. Under various premium principles, we are able to design suitable insurance. Numerical research with the data of Tokyo region is also performed.