Insurance premium term normalization calculator

Calculate normalized premiums by quote and lowest normalized premium with your own figures.

Your numbers

Use the units shown. Results update as you change valid inputs.

Choose the currency for these amounts. Changing it keeps your numbers and does not convert exchange rates.

Use normalized premiums by quote and lowest normalized premium to compare changes to your inputs. The method and limits below explain the scope.

Examples

Examples

Try the starting example

Quoted premiums (USD)
600,400
Covered term lengths (days)
365,180
Common comparison term (days)
365
Normalized premiums by quote (JSON)
[600,811.111111111]
Lowest normalized premium (USD)
$600.00

Try another scenario

Quoted premiums (USD)
[601, 400]
Covered term lengths (days)
[365, 180]
Common comparison term (days)
365
Normalized premiums by quote (JSON)
[601,811.111111111]
Lowest normalized premium (USD)
$601.00
Calculation method

Calculation method

Normalized premiums by quote (JSON)

Scale each premium linearly to a common term; assumes equal coverage and no term-dependent fees.

Lowest normalized premium (USD)

Scale each premium linearly to a common term; assumes equal coverage and no term-dependent fees.

Symbols and units
a
Quoted premiums (USD)
b
Covered term lengths (days)
c
Common comparison term (days)

Use the units shown. A list keeps the order in which you enter its values. The symbol ^ means “raised to the power of”.

Assumptions & limits

Assumptions & limits

  • User-supplied measurements and assumptions; Scale each premium linearly to a common term; assumes equal coverage and no term-dependent fees. Supported limits: Finite numeric values bounded to 1e9 magnitude; lists and tables contain 1–100 records unless a stricter bound is stated. Inputs use the units shown. Lists explicitly paired by a method must have matching lengths; independent polynomial coefficient vectors may differ. Respect stated physical, interpolation, policy and computational domain limits.
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