Use the result for a transparent first-pass actuarial calculation when the probability, interest, exposure, and timing assumptions are already defined on a consistent basis.

Claim frequency

Expected number of claims per period.

Severity second moment

Second raw moment of the single-claim severity.

Calculate the variance of aggregate claims for a compound Poisson model as the claim frequency times the second moment of severity. The tool evaluates the supplied inputs together and returns the named outputs below; it does not infer omitted operating conditions or change the units shown.^[1]

Standard deviation

Standard deviation of aggregate claims.

Total variance

Variance of aggregate claims.

• Actuarial results are conditional on the supplied mortality, survival, loss, interest, or development assumptions. They are not a premium opinion, reserve certification, or substitute for experience analysis and regulatory judgment.
• Use finite inputs in the displayed units and preserve more precision than the final presentation requires. Independently verify safety-critical, financial, compliance, or production decisions.

Compare the result with a second reserving, credibility, or life-contingency method and test how it changes under plausible assumption ranges. Retain the basis and valuation date with the result.

• Proportional Reinsurance Retained Variance Calculator

  Calculate retained aggregate-loss variance after proportional reinsurance by multiplying total variance by the square of the retained share.

• Apportionable Premium Factor Calculator

  Calculate the apportionable premium factor that adjusts an annual premium for installment payment frequency assuming claims occur uniformly over the year.

• Frequency Severity Expected Loss Calculator

  Multiply expected claim frequency by average claim severity to obtain the expected loss.