Abstract

Journal of Actuarial Practice

Volume 3, Number 1, 1995


HIV, AIDS, Markov Processes, and Health and Disability Insurance

Steven Haberman

Abstract

This paper presents a Markov model of the transmission and development of HIV and AIDS. The Markov model is used to derive functions needed in the calculation of disability insurance premiums, reserves, and cash flows. An application to health insurance and disability insurance is provided.

Key words and phrases: permanent health insurance, transition probabilities, premiums, cash flows

Steven Haberman
School of Mathematics,
Statistics and Actuarial Science,
City University,
London ECIV 0HB,
England


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