Risk Premium Calculator
Calculate actuarial risk premium and total insurance premium from expected loss, loading factor, and administrative costs.
How to Use the Risk Premium Calculator
- Enter the expected annual loss amount.
- Enter the loading factor percentage.
- Enter administrative cost.
- Click Calculate to see risk premium and total premium.
使用场景
- •Pricing insurance products from actuarial loss estimates.
- •Comparing premium adequacy against expected claims.
- •Teaching actuarial pricing concepts to students.
- •Reviewing premium components in insurance product design.
公式
Risk premium = expected loss × (1 + loading%). Total premium = risk premium + admin cost.
常见问题
What is a risk premium?
A risk premium is the amount above the expected loss that an insurer charges to cover profit, uncertainty, and capital costs.
What is the loading factor?
The loading factor accounts for insurer profit, unexpected claims volatility, expense margin, and return on capital requirements.
How is the expected loss estimated?
Expected loss = probability of claim × average claim size, estimated from historical data and actuarial models.