Risk Load Calculator

Calculate actuarial risk loads and margin for adverse deviation based on loss volatility and confidence levels.

Expected Loss

Standard Deviation

Confidence Level (%)

Cost of Capital (%)

Risk-Free Rate (%)

Tab to move between fields

Risk Load

$3,290,000

Capital Required

$3,553,200

Total Risk Charge$8,290,000

Risk-Adjusted Premium$8,290,000

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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