Underwriting Risk Calculator
Calculate underwriting risk, expected losses, risk-adjusted premiums, and capital requirements for insurance policies.
Inputs
Results
Expected Loss
$1,000
Underwriting Profit
$9,000
Profit Margin
90%
Risk Score
2 / 100
Risk-Adjusted Premium$10,000
Capital Requirement$50,000
Expected Loss
$1,000
Underwriting Profit
$9,000
Profit Margin
90%
Risk Score
2 / 100
How to Use This Calculator
- Start by filling in the input fields below. Results update instantly as you type, so you can experiment with different values to see how they affect the outcome.
- Policy Value — Total policy coverage amount default: 500,000.
- Annual Premium — Annual premium charged default: 10,000.
- Probability of Claim — Probability of claim occurring default: 2.
- Expected Claim Amount — Average expected claim amount default: 50,000.
- Worst Case Claim — Maximum possible claim amount default: 500,000.
- Reinsurance Coverage — Percentage covered by reinsurance default: 0.
- Once all inputs are set, review your results in the Results panel. Here's what each output means:
- Expected Loss — shown as a dollar amount. This is the primary result of this calculator.
- Underwriting Profit — shown as a dollar amount. This is the primary result of this calculator.
- Profit Margin — shown as a percentage. This is the primary result of this calculator.
- Risk Score — shown as a numeric value. This is the primary result of this calculator.
- Risk-Adjusted Premium — shown as a dollar amount.
- Capital Requirement — shown as a dollar amount.
- Explore the related calculators below if you need deeper analysis or want to approach this topic from a different angle.
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Formula
Expected Loss = Probability × Claim AmountRelated Calculators
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