Examining the Effects of Gradual Catastrophes on Capital Modelling and the Solvency of Insurers: The Case of COVID-19

Muhsin Tamturk; Dominic Cortis; Mark Farrell

doi:10.3390/risks8040132

Examining the Effects of Gradual Catastrophes on Capital Modelling and the Solvency of Insurers: The Case of COVID-19

Muhsin Tamturk^*, Dominic Cortis, Mark Farrell

^*Corresponding author for this work

Queen's Business School (QBS)

Research output: Contribution to journal › Article › peer-review

3 Citations (Scopus)

133 Downloads (Pure)

Abstract

This paper models the gradual elements of catastrophic events on non-life insurance capital with a particular focus on the impact of pandemics, such as COVID-19. A combination of actuarial and epidemiological models are handled by the Markovian probabilistic approach, with Feynman’s path calculation and Dirac notations, in order to observe how a pandemic risk may affect an insurer via reduced business. We also examine how the effects of a pandemic can be taken into account both during and at the end of the process. Examples are also provided showing the potential effects of a pandemic on different types of insurance product.

Original language	English
Article number	132
Number of pages	13
Journal	Risks
Volume	8
Issue number	4
DOIs	https://doi.org/10.3390/risks8040132
Publication status	Published - 06 Dec 2020

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10.3390/risks8040132Licence: CC BY

Examining the Effects of Gradual Catastrophes on Capital Modelling and the Solvency of Insurers: The Case of COVID-19
Copyright 2020 the authors. This is an open access article published under a Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium, provided the author and source are cited.
Final published version, 415 KBLicence: CC BY

Cite this

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Examining the Effects of Gradual Catastrophes on Capital Modelling and the Solvency of Insurers: The Case of COVID-19

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