CALCULATION OF PURE HEALTH INSURANCE PREMIUM IN REALTION TO MEASLES DISEASE IN THE WEST JAVA REGION USING THE SIR MODEL

• Main Author: Benedict, Michael
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/75624
• Institution: Institut Teknologi Bandung

The COVID-19 pandemic has brought about significant changes in human life. Uncertainty has forced us to quickly adapt to rapid digital transformation, new social norms, and financial planning. Building a strong foundation for financial planning requires three fundamental steps: establishing an emergency fund, paying off debts and credits, and obtaining life and health insurance coverage. According to a survey, 1 out of 3 people expressed a desire to purchase health insurance protection as a result of the COVID-19 pandemic. This demand challenges insurance companies to continually update their insurance products to address emerging diseases in Indonesia. One such disease that has previously caused outbreaks in Indonesia is measles. Measles can be effectively modeled using the SIR Model, which categorizes individuals into the Susceptible, Infected, or Recovered compartments. Utilizing differential equations, the SIR Model captures the dynamics of individuals transitioning between these compartments over time. In this study, the parameters of the SIR Model are estimated using the Least Square method, leveraging measles spread data from West Java. The analysis of this data further enables the application of the Infection Table-Based Approximation method to determine the pure premium for health insurance coverage specifically tailored to measles. Through simulations, the study accurately identifies the SIR Model parameters and calculates the pure premium values for measles coverage, accommodating both annuity and Lump-Sum payment methods.