Quantitative Risk Assessment of African Swine Fever Introduction into Spain by Legal Import of Live Pigs

African swine fever (ASF) is a devastating infectious disease of pigs that is threatening the global swine industry at present. The current spread of ASF in Europe and its recent incursion into Germany pose a serious risk to Spain, one of the world’s leading pig producers. A quantitative stochastic risk assessment model was developed to estimate the probability of ASF introduction into Spain via the legal import of live pigs. The results suggest a low annual probability of ASF introduction into Spain (1.07 × 10−4), the highest risk being concentrated in Central European countries (Germany, the Netherlands, Belgium, and Luxembourg) during the months of April and February. The methods and results presented herein could contribute to improving prevention and control strategies and, ultimately, would help reduce the risk of ASF introduction into Spain.

Payment Accuracy in Value-Based Care Contracts

Reimbursement for health care services is transferring more risk away from payers and toward health care providers in the form of Alternative Payment Models (APMs), also known as Value-Based Care (VBC) models. VBC models cover a wide variety of forms but all include guarantees by providers of services to improve quality of care and/or reduce cost. Types of risk include performance risk, contract design risk or stochastic risk (because of the random variation in health care services and costs). A form of contract risk that can be a significant driver of cost is model risk, defined as the probability that the savings calculated at contract reconciliation will deviate from the actual savings generated. To estimate the degree of risk we quantify the potential variance in outcomes in a naïve population prior to intervention and the components that could affect outcomes, using examples of maternity and type 2 diabetes. This analysis has implications for both participants in, and designers of value-based contracts.

Long-term stochastic risk models: the sixth generation of modern actuarial models?

This paper discusses the use of modelling techniques for the purpose of risk management within life insurers. The key theme of the paper is that life insurance is long-term business and carries with it long-term risks, yet much of modern actuarial risk management is focussed on short-term modelling approaches. These typically include the use of copula simulation models within a 1-year Value-at-Risk (VaR) framework. The paper discusses the limitations inherent within the techniques currently used in the UK and discusses how the focus of the next generation of actuarial models may be on long-term stochastic projections. The scope of the paper includes a discussion of how existing techniques, together with new approaches, may be used to develop such models and the benefits this can bring. The paper concludes with a practical example of how a long-term stochastic risk model may be implemented.