Rate Filing Calculator
Calculate indicated rate changes for insurance rate filings using loss ratio and expense analysis.
Inputs
$
$
Results
Indicated Rate Change
-7.1%
Required Premium
$9,285,714.00
≈ 22 average U.S. homes
Actual Loss Ratio65%
Permissible Loss Ratio70%
Profit Provision$500,000.00
How to Use This Calculator
- Enter the current written premium and loss data for the experience period.
- Input the trend factors for loss cost and premium.
- Set the development and credibility factors.
- Review the indicated rate level change and the proposed overall rate change.
- Document all actuarial assumptions in the supporting memorandum for the regulatory filing.
How the result changes with Earned Premium
| Earned Premium | Indicated Rate Change | Required Premium |
|---|---|---|
| $1,000,000,000.00 | -99% | $9,285,714.00 |
| $3,500,000,000.00 | -99.7% | $9,285,714.00 |
| $6,500,000,000.00 | -99.9% | $9,285,714.00 |
| $9,000,000,000.00 | -99.9% | $9,285,714.00 |
What each input means
- Earned Premium
- Total earned premium at current rate level
- Ultimate Losses
- Projected ultimate losses including IBNR and development
- Fixed Expense Ratio (%)
- Fixed expenses as a percentage of premium (overhead, salaries)
- Variable Expense Ratio (%)
- Variable expenses as a percentage of premium (commissions, taxes)
- Profit Target (%)
- Target underwriting profit as a percentage of premium
How this is calculated
Worked example, using the default values
- Identify Input Parameters4 parametersEarned Premium = 10000000, Ultimate Losses = 6500000, Fixed Expense Ratio (%) = 10, Variable Expense Ratio (%) = 25 = 5 input(s) provided
- Calculate Indicated Rate ChangeIndicated Rate Change-7.1 = -7.1%
- Calculate Required PremiumRequired Premium9285714 = $9,285,714
- Calculate Actual Loss RatioActual Loss Ratio65 = 65%
- Calculate Permissible Loss RatioPermissible Loss Ratio70 = 70%
Related Calculators
The questions that sit next to this one — chosen by subject, including calculators filed under a different category.
Actuarial Science
Pricing Adequacy Calculator
Assess whether collected premiums are sufficient to cover losses, expenses, and profit targets.
Actuarial ScienceLoss Ratio Calculator
Calculate insurance loss ratios, expense ratios, combined ratios, and underwriting profitability metrics.
Actuarial ScienceLife Expectancy Calculator
Calculate life expectancy based on age, gender, lifestyle factors, and health metrics. Uses actuarial science principles.
More in Insurance.