The effect of HIV/AIDS on mortality and insurance packages of HIV/AIDS infected individuals

Abstract

This study is an investigation into the effect of HIV/AIDS on mortality and insurance package in Kenya. The effect of HIV/AIDS on mortality is considered by analysis of 2010 data from KENYA HIV AND AIDS MONITORING & EVALUATION ANNUAL REPORT 2008. This analysis is supplemented by applying a combination of two states Markov model, actuarial calculation of premiums and survival probabilities with addition force of mortality. The study finds that HIV/AIDS is related to increase in mortality with an adverse increase to children aged below 15 years. The study also comes up with premiums payable for whole life insurance of a HIV infected adult in Kenya and premium payable for maternity cover for HIV infected women that cover for baby formulae for the first six months before weaning.