OpenChainGraph Suite · ART-255 · Insurance STP

LCM Rate Derivation Calculator

Computes indicated rates from user-supplied loss costs using Loss Cost Multiplier (LCM) decomposition arithmetic per ASOP 25. Enter your own pure loss costs and loading components. This tool performs the LCM math only; it does not embed, store, or redistribute ISO/Verisk advisory loss costs or any proprietary rate-bureau filing.

ASOP 25 LCM Arithmetic SERFF Filing Support User-Supplied Loss Costs Only Proofs Deferred
⚠ PROPRIETARY DATA NOTICE: Enter only your own internally-derived loss costs. Do not enter ISO/Verisk advisory pure premium or loss cost rate pages — those are proprietary to Verisk Analytics and require a license to reproduce. This tool performs LCM decomposition arithmetic only on data you supply.
🔒 All inputs are processed locally in your browser. No data is transmitted. Do not enter real personal data — use synthetic or anonymised inputs only. This tool accepts aggregate rate components only — no policyholder or personal data.
Formula Reference
LCM = 1 / (1 - LAE% - fixed_exp% - variable_exp% - profit%)
indicated_rate = credibility_weighted_loss_cost × LCM
rate_change% = (indicated_rate / current_rate - 1) × 100
Your Loss Cost Inputs
Your internally-derived pure loss cost per exposure unit. Do NOT enter ISO/Verisk rate pages here.
Credibility weight applied to your loss cost vs. complement. Z=1 means full credibility.
Complement (industry/bureau) loss cost for credibility blending. Used only when Z < 1.
Current filed rate for rate change calculation. Leave blank to skip off-balance analysis.
Loading Components (as decimals, e.g. 0.12 = 12%)
Rate Derivation Detail
Execution Hash (SHA-256)