Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 359

COVID Susceptibility Index can help to manage outbreaks

Background: At a recent UNSW virtual research seminar, Calise Liu and Alan Xian presented their research on developing a COVID-19 Susceptibility Index. This interview explores the research and its potential applications. Calise works at Finity Consulting, which specialises in actuarial and strategic analytics consulting. Alan has nearly finished his PhD at UNSW and will start a role at Macquarie University later this year. 

David: With your actuarial backgrounds, what motivated you to get involved in COVID-19 research, which to many is the domain of medical researchers?

Calise: Once you have data (and there is a lot of data available), many of the skills required to analyse that data are universal. We had read a lot of medical literature but hadn’t seen the translation of those results to the Australian population. Actuaries are particularly well-placed because we have expertise in modelling large demographic data sets. Of course, we are not medical experts and so we made sure to get specialist medical input. We held discussions with six medical experts on the design aspects of our research.

David: Why the focus on susceptibility?

Alan: There was already a lot of research modelling transmission of the virus. We noticed a research gap in terms of investigating susceptibility at a demographic level. Susceptibility, the risk of severe illness or death if an individual were to contract the virus, is important in many ways. At a government level, susceptibility tells you how bad it could be in each region if an outbreak were to occur. This then informs decisions around resource allocation and how quickly you want to be able to identify and treat known cases.

David: Explain how you have developed the Susceptibility Index.

Alan: We combined age characteristics (60-69, 70-79, and 80+) with five health aspects (known as co-morbidities): cardiovascular disease, respiratory disease, cancer, diabetes and obesity. Unfortunately, the data shows that certain groups – notably the elderly with multiple health issues – are many times more likely to have severe reactions if infected with COVID-19, compared with young healthy people.

Calise: By combining our susceptibility score with Finity’s Defin’d dataset of socio-demographic and geographic attributes, we can explore COVID-19 impacts by area, household composition, income band, industry and more. We found some evidence of vulnerable populations away from capital cities, where multiple risk factors are more concentrated. We used heatmaps to visualise the susceptibility risk (red indicates areas with, on average, highest susceptibility).

The news is both good and bad. So far, most of the cases have occurred in areas with relatively-lower susceptibility. However, this is something to consider when looking at when, where and how to relax restrictions.

David: When you combine the demographic data with age and health factors, do any socio-economic effects emerge?

Alan: Unfortunately, we find that at-risk communities commonly have low socio-economic characteristics (i.e. low income). This isn’t surprising – when we spoke to our medical experts, they were aware that health issues and co-morbidities tend to present more strongly in poorer socio-economic groups. As a result, the disadvantaged segments of Australia may require additional resources as we start relaxing isolation measures.

David: What are the implications for government policy?

Calise: We think our work can inform policy in a number of ways. Our model provides an exposure measure for the Australian population that can serve as a foundation for various extensions. Transmission information can be overlaid to assess the impact of various policies. Our analysis can also highlight areas where outbreaks of COVID-19 may be particularly devastating, guiding decisions around allocation of financial and medical resources. Conversely, the additional economic information could be incorporated to examine trade-offs between simulating economic recovery and minimising risk to public safety.

David: I know this is early days, but have you been able to share this research with authorities?

Alan: We have had some interest from the Department of Health. We are happy to work with any interested parties to see how our work could be of assistance.

David: Finally, Alan, you’ve effectively put your PhD on hold, and Calise, you’ve been supported by Finity, but most of this research is outside of work hours. Do you think that this may be a feature of your future careers, jumping into projects outside your core line of research where you see the opportunity to contribute?

Calise: I think many young people view contribution as an important part of their career. I’m fortunate to have an analytical skillset which can be applied to different problems. 

Alan: I do have to finish my PhD soon and am looking forward to that light at the end of the tunnel. Luckily, I have supportive supervisors who share my view that these contributions are worthwhile pursuits. At the start of my PhD, what I really wanted was to produce societally beneficial research and so these projects are very exciting. 

 

Individuals with co-morbidities or symptoms associated with COVID-19 should follow the government advice and take extra precautions which can be found here.

If you would like to know more about the Susceptibility Index you can read more here.

 

David Bell is Executive Director of The Conexus Institute, a not-for-profit research institution focused on improving retirement outcomes for Australians. Calise Liu is a Fellow of the Institute of Actuaries of Australia and an intern at Finity Consulting. Alan Xian is a PhD candidate at UNSW.

 


 

Leave a Comment:


RELATED ARTICLES

What should the next generation's Australia look like?

Halving super drawdowns helps wealthy retirees most

Baby bust: will infertility shape Australia's future?

banner

Most viewed in recent weeks

Vale Graham Hand

It’s with heavy hearts that we announce Firstlinks’ co-founder and former Managing Editor, Graham Hand, has died aged 66. Graham was a legendary figure in the finance industry and here are three tributes to him.

The nuts and bolts of family trusts

There are well over 800,000 family trusts in Australia, controlling more than $3 trillion of assets. Here's a guide on whether a family trust may have a place in your individual investment strategy.

Welcome to Firstlinks Edition 583 with weekend update

Investing guru Howard Marks says he had two epiphanies while visiting Australia recently: the two major asset classes aren’t what you think they are, and one key decision matters above all else when building portfolios.

  • 24 October 2024

Warren Buffett is preparing for a bear market. Should you?

Berkshire Hathaway’s third quarter earnings update reveals Buffett is selling stocks and building record cash reserves. Here’s a look at his track record in calling market tops and whether you should follow his lead and dial down risk.

Preserving wealth through generations is hard

How have so many wealthy families through history managed to squander their fortunes? This looks at the lessons from these families and offers several solutions to making and keeping money over the long-term.

A big win for bank customers against scammers

A recent ruling from The Australian Financial Complaints Authority may herald a new era for financial scams. For the first time, a bank is being forced to reimburse a customer for the amount they were scammed.

Latest Updates

Shares

Looking beyond banks for dividend income

The Big Four banks have had an extraordinary run and it’s left income investors with a conundrum: to stick with them even though they now offer relatively low dividend yields and limited growth prospects or to look elsewhere.

Exchange traded products

AFIC on its record discount, passive investing and pricey stocks

A triple headwind has seen Australia's biggest LIC swing to a 10% discount and scuppered its relative performance. Management was bullish in an interview with Firstlinks, but is the discount ever likely to close?

Superannuation

Hidden fees are a super problem

Most Australians don’t realise they are being charged up to six different types of fees on their superannuation. These fees can be opaque and hard to compare across different funds and investment options.

Shares

ASX large cap outlook for 2025

Economic growth in Australia looks to have bottomed, which means it makes sense to selectively add to cyclical exposures on the ASX in addition to key thematics like decarbonisation and technological change.

Property

Taking advantage of the property cycle

Understanding the property cycle can be a useful tool to make informed decisions and stay focused on long-term goals. This looks at where we are in the commercial property cycle and the potential opportunities for investors.

Investment strategies

Is this bedrock of financial theory a mirage?

The concept of an 'equity risk premium' has driven asset allocation decisions for decades. A revamped study suggests it was a relatively short-lived phenomenon rather than the mainstay many thought.

Vale Graham Hand

It’s with heavy hearts that we announce Firstlinks’ co-founder and former Managing Editor, Graham Hand, has died aged 66. Graham was a legendary figure in the finance industry and here are three tributes to him.

Sponsors

Alliances

© 2024 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.