Product Pricing Tool and Easy

APT provides a basic insurance pricing calculator for short term/tail lines. While geared for insurance premium, it can really be used to price any product whose retail price is not heavily dependent on the time value of money. I put this together as a way to do quick calculations on the fly during meetings with sales, management or clients without having to drag along the laptop. Good for basic pricings or representative cells of a larger pricing. Easily see the effect of adding or subtracting out product components, changing commission or profit levels, or adjusting expense levels. Besides the pricing calculator, there is a regular calculator and a loan calculator just because I find it useful to have them all in one place.

Whether you think this is the greatest thing since sliced bread, just need to satisfy your morbid actuarial curiosity or have an obsessive need to try to break it, it's yours for less than the cost of a decent cup of coffee. If you do break it, please let me know by using the contact link here in the App Store. Always open to suggestions too!

For those wanting more detail, here is the info found on the instruction page...

Premium in the basic pricing calculator is computed by the following basic formula:

 Premium = (Claim Cost * (1 + Variable Expense on Claims) + Fixed Expense) / (1 - Commission - Profit - Variable Expense on Premium)

. There is a Reference Premium that can be any value desired. There is a percentage value next to the Premium that is the ratio of the Premium over the Reference Premium. This allows the impact of changes in assumption values to be easily understood. The Set as Reference Premium button will copy the current Premium value into the Reference Premium field.

 The premium components of the formula above are each shown on the screen. The sum of all the components will always equal to the Premium value shown and the percents will always total to 100%. 

Profit and Commission are entered as a percent of premium.

 Claim Cost and each of the expense types other than Commission are itemized in the tables with the total amounts and percentages shown above the table.

 There is a starter row in each table that can be adjusted by typing over the values or deleted by hitting Remove. Additional rows can be added by tapping the Add button at the top of the table. Each row in the table will have an Include switch to allow the item to be included or excluded from the total without having to remove the item or add it back. 

In the Claim Cost table, the Cost is computed automatically as Frequeny * Severity. If you only want to enter claim cost, then enter it in the Severity field and set the Frequency field to 1.