// multi-utility computation suite · offline · instant · precise
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fin.pure-premium-insurance Calculator
Calculates actuarial net premium and gross written premium from expected loss, expense ratio, and profit loading. Net premium = expected losses × loss development factor — the expense and profit loading convert it to a marketable gross premium.
Inputs
Expected Claims Per Year
Reference formula or conversion factor shown for context.
Average Claim Severity
Age in completed years. Many health and fitness formulas adjust for age.
Expense Ratio Pct
Reference formula or conversion factor shown for context.
Profit Margin Pct
Profit as a percentage of revenue. Margin % is always lower than markup % — a $5 profit on a $15 selling price is 33% margin but 50% markup.
Results
pure premium (loss cost)
The price paid for the option or insurance coverage. Option premium = intrinsic value + time value + volatility premium.
gross written premium
The price paid for the option or insurance coverage. Option premium = intrinsic value + time value + volatility premium.
expense loading ($)
Sample size or count used in the calculation.
profit loading ($)
Revenue minus all costs -- the net gain from the activity.
loss ratio
The proportional relationship between two quantities.
combined ratio
The proportional relationship between two quantities.