Calculate claim frequency, severity (average claim) and pure premium per exposure unit.
How the frequency & severity calculator works
Frequency (how often claims happen) and severity (how big they are) explain a loss ratio. Their product is the pure premium — the expected loss cost per unit of exposure.
Formula
Frequency = Claims ÷ Exposure. Severity = Losses ÷ Claims. Pure premium = Losses ÷ Exposure = Frequency × Severity.
How to use it
Enter the number of claims and total losses.
Enter the exposure units.
Choose how to express frequency.
Worked example
46 claims and $690K of losses on 380 vehicles: 12.1 claims per 100 vehicles, $15,000 severity, $1,816 pure premium per vehicle.
Frequently asked questions
Why separate frequency and severity?
They respond to different fixes — safety programs cut frequency, while limits, deductibles and claims handling affect severity.
What is a pure premium?
The expected loss (and often LAE) per exposure unit, before expenses and profit.