Climate change failure, extreme weather, biodiversity losses, infectious diseases, human environment damage, geopolitical confrontation are among many of the most severe risks on a global scale identified almost every year on the Global Risks Reports by the World Economic Forum. With the evolution of human societies, natural and anthropogenic disasters are inevitable and increasingly frequent.

Actuarial science plays a critical role in the study of the financial impact of natural disasters and human hazards and risk management solutions. Our research team has done research work in the design, pricing, valuation and management of catastrophe-related financial derivatives and insurance solutions. For example, we have recently worked on mathematical models to analyze the transmission dynamics of infectious diseases and to measure the cost of health care. Taking advantage of epidemic models, we project the dynamics of demand and supply for medical resources at different phases of a pandemic. Such predictions provide quantitative bases for decision makers of healthcare system to understand the potential imbalance of supply and demand, and to address disparities of access to critical medical supply across different subsidiaries and in the course of the pandemic.