Simulation modelling for predicting hospital admissions and bed utilisation

Maria Hajłasz () and Bożena Mielczarek

Operations Research and Decisions, 2020, vol. 30, issue 3, 5-27

Abstract: We focus on ensuring the financial requirements of a person that has life insurance and needs money because of suffering from a terminal illness that requires costly diagnosis and treatment. On the secondary market of life insurance (the viatical market), companies offer purchase of rights to benefits after the death of the insured. The paper aims to analyse the problem of optimising the life settlement for the insured. We determine the amount of the nominal value of the benefit which the insured intends to sell in such a way so that the number of benefits and premiums maximise the average amount of funds available to the insured. We use various approaches of the insured to risk to find an optimal solution, which also allows taking into consideration the different kinds of human behaviour in risky conditions. The obtained theoretical results are illustrated with examples demonstrating the possibility of their application in practice.

Keywords: viatical settlement; multistate model; Bernoulli principle; rank dependent expected utility theory; cumulative prospect theory. (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://ord.pwr.edu.pl/assets/papers_archive/1484%20-%20published.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wut:journl:v:3:y:2020:p:5-19:id:1484

DOI: 10.37190/ord200201

Access Statistics for this article

More articles in Operations Research and Decisions from Wroclaw University of Science and Technology, Faculty of Management Contact information at EDIRC.
Bibliographic data for series maintained by Adam Kasperski ().