Pricing Adequacy Calculator
Assess whether collected premiums are sufficient to cover losses, expenses, and profit targets.
Inputs
Results
Required Premium
$9,066,667
Adequacy Ratio
88.2%
Surplus / (Deficit)-$1,066,667
Break-Even Premium$8,400,000
Adjusted Loss Ratio68.8%
How to Use This Calculator
- Enter the current average filed rate.
- Input the indicated rate change from the actuarial rate analysis.
- Set the expense and profit loading components.
- Review the adequacy percentage — how close the current rate is to the indicated rate.
- File a rate revision when the indicated change exceeds regulatory threshold or company tolerance.
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