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)

  







  

    
Ask your agent

    
  

  
Copy this paragraph into Claude, OpenClaw, or any MCP-aware agent to run this exact tool, with this sample, and verify the artifact.

  
Run the AINumbers MCP tool `compute_lcm_rate_derivation`. Task: Compute the Loss Cost Multiplier (LCM) and indicated insurance rate from user-supplied loss costs and expense/profit loadings.
Call it with arguments: {"policy_parameters":{"pure_loss_cost":120,"lae_pct":0.12,"fixed_expense_pct":0.08,"variable_exp_pct":0.1,"profit_pct":0.05}}
Verify before trusting: call `verify_execution_hash` on mcp.ainumbers.co (https://mcp.ainumbers.co/mcp) with the parameter `claimed_hash` set to the returned `execution_hash`, passing the full artifact the run returned (the object containing `policy_parameters` + `output_payload` + `execution_hash`; equivalently `policy_parameters` + `output_payload` with `claimed_hash`), not the bare hash string.
Return the ledger link https://ledger.ainumbers.co/ so a human can re-verify without contacting us.
PII rule: All inputs are processed locally in your browser. No data is transmitted. Do not enter real personal data — use synthetic or anonymised inputs only.
Open the tool with the sample prefilled: https://ainumbers.co/chaingraph/art-255-compute-lcm-rate-derivation.html#p=v1.H4sIAAAAAAAA_wFnAJj_eyJwdXJlX2xvc3NfY29zdCI6MTIwLCJsYWVfcGN0IjowLjEyLCJmaXhlZF9leHBlbnNlX3BjdCI6MC4wOCwidmFyaWFibGVfZXhwX3BjdCI6MC4xLCJwcm9maXRfcGN0IjowLjA1fboTl2ZnAAAA