Risk Load Calculator
Calculate actuarial risk loads and margin for adverse deviation based on loss volatility and confidence levels.
Inputs
$
$
Results
Risk Load
$3,290,000.00
Capital Required
$3,553,200.00
Total Risk Charge$8,290,000.00
Risk-Adjusted Premium$8,290,000.00
Return on Capital (%)7.41%
How to Use This Calculator
- Enter the expected loss for the risk being priced.
- Input the standard deviation of the loss distribution.
- Set the risk load factor (lambda) from the pricing standard.
- Review the risk-loaded premium.
- Increasing the lambda produces a more conservative (higher) premium appropriate for low-frequency, high-severity risks.
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