Abstract-2014121902


Abstract

Epidemic outbreaks, such as SARS (Severe Acute Respiratory Syndrome), Ebola virus disease, and so on, are challenging issues from various risk management view points. Here we introduce a simple stochastic model for an insurer on the risk due to these pandemics. The method is based on a combination of the establishments from the theory of epidemic modelling and stochastic processes. We derive an estimation formula.