Catastrophe Model Loss Calculator
Estimate catastrophe losses including expected annual loss, probable maximum loss, and exceedance probabilities.
Inputs
$
$
Results
Expected Annual Loss
$5,000,000.00
≈ 12 average U.S. homes
Probable Maximum Loss
$133,113,883.00
≈ 317 average U.S. homes
Annual Exceedance Prob (%)1%
Occurrence Exceedance Prob (%)1.15%
Cat Load (%)1.4%
How to Use This Calculator
- Enter the insured value (total exposure) in dollars.
- Set the modeled annual exceedance probability (e.g., 1% for a 1-in-100 event).
- Input the expected loss ratio at the selected return period.
- Review the modeled probable maximum loss (PML) at the selected return period.
- Use PML estimates to set catastrophe reinsurance attachment points and limits.
How the result changes with Total Insured Value
| Total Insured Value | Expected Annual Loss | Probable Maximum Loss |
|---|---|---|
| $10,000,000,000.00 | $100,000,000.00 | $2,662,277,660.00 |
| $35,000,000,000.00 | $350,000,000.00 | $9,317,971,811.00 |
| $65,000,000,000.00 | $650,000,000.00 | $17,304,804,791.00 |
| $90,000,000,000.00 | $900,000,000.00 | $23,960,498,942.00 |
What each input means
- Total Insured Value
- Total insured value of the portfolio exposed to catastrophe risk
- Return Period (years)
- Return period for PML calculation (e.g., 100-year event)
- Area Hazard Level
- Geographic hazard exposure level (hurricane, earthquake, flood zones)
- Deductible (%)
- Percentage deductible applied to losses
- Reinstatement Premium
- Additional premium for reinstating coverage after a loss
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersTotal Insured Value = 500000000, Return Period (years) = 100, Area Hazard Level = 3, Deductible (%) = 5 = 5 input(s) provided
- Calculate Expected Annual LossExpected Annual Loss5000000 = $5,000,000
- Calculate Probable Maximum LossProbable Maximum Loss133113883 = $133,113,883
- Calculate Annual Exceedance ProbAnnual Exceedance Prob1 = 1%
- Calculate Occurrence Exceedance ProbOccurrence Exceedance Prob1.15 = 1.15%
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