What this calculator does
Insurance combined ratio works out whether premiums collected cover claims and the cost of writing policies. Enter your own figures above and the answer updates as you type: nothing is fixed in the code, so the result reflects exactly the numbers you supply.
The formula this calculator evaluates is printed under the tool and explained below, so you can check the working by hand or reuse it in a spreadsheet.
The formula
FormulaLoss ratio = (Losses + Loss adjustment expenses) / Earned premiums; Expense ratio = Underwriting expenses / Earned premiums; Combined ratio = Loss ratio + Expense ratio
The inputs explained
| Field | What to enter |
|---|---|
| Incurred losses ($) | A number, measured in your currency. Starts at 620000. |
| Loss adjustment expenses ($) | A number, measured in your currency. Starts at 40000. |
| Underwriting expenses ($) | A number, measured in your currency. Starts at 280000. |
| Earned premiums ($) | A number, measured in your currency. Starts at 1000000. |
Worked examples
Every figure in the tables below is produced by this page’s own calculator at build time, so the numbers and the tool always agree. Select any row to load that scenario.
How the answer changes with incurred losses
Every other input is held at the calculator’s starting values while incurred losses varies. Select any row to load that scenario into the calculator.