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Premium To Sum Insured Ratio Calculator

Work out premium to sum insured ratio instantly with clear inputs, formula shown and shareable results.

About Premium To Sum Insured Ratio Calculator

Expressing premium as a rate per mille of sum insured is the standard way to compare insurance pricing across years and across insurers, because sums insured change with indexation and rebuild cost while the underlying rate is what actually moves with the market and your risk profile.

Formulas

Rate per mille

Rate = Annual premium / Sum insured x 1,000

Variance

Variance % = (Your rate - Benchmark rate) / Benchmark rate x 100

Worked example

With the default values below, Premium To Sum Insured Ratio Calculator returns Rate per 1,000 sum insured of 4.2000. Change any input above and every figure here is recalculated in your browser.

Inputs used

Annual premium
42,000
Sum insured
10,000,000
Benchmark rate per 1,000 sum insured
3.6

Results

Rate per 1,000 sum insured
4.2000
Premium as % of sum insured
0.4200%
Variance against benchmark
16.67%
Assessment
Above benchmark — review cover and loadings

Step by step

  1. 1Values used
  2. 2Rate per mille
  3. 3Variance
  4. 4Rate per 1,000 sum insured= 4.2000
  5. 5Premium as % of sum insured= 0.4200
  6. 6Variance against benchmark= 16.67
  7. 7Assessment= Above benchmark — review cover and loadings

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax or fees or charges into account.
  • Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Indicative estimate only. Fees, entitlements, limits and formulas vary by jurisdiction, statute, policy wording and the facts of the case. This is not legal, tax, insurance or financial advice — confirm with a qualified professional or the relevant authority.

Frequently Asked Questions

Why not just compare premiums?

Because a premium that rose 10% while the sum insured rose 15% is actually a rate reduction. Only the rate isolates pricing from indexation.

What drives a rate above benchmark?

Claims experience, occupancy hazard, poor risk controls, catastrophe exposure, or simply a hardening market in that class.

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