Estimate the probability-weighted annual value of a potential travel insurance claim after the deductible or retention. The result separates the insurer payout if a covered claim occurs from its expected annual value and compares that value with premium. It is a risk-planning estimate and does not account for every exclusion, sublimit, or claim-adjustment rule.
Expected claim value is a long-run average across many comparable risk periods, not the amount likely to be received in one particular year.
Policy limits are not modeled; enter a loss amount already capped at the applicable covered limit if necessary.
With a 18% probability, a $4,000 loss, and a $500 deductible, multiply the post-deductible payout by 0.18.
No. It provides a planning estimate using your inputs; policy selection requires review of terms, exclusions, limits, price, and personal or business circumstances.
Use a clearly defined scenario. A severe but plausible covered loss is useful for stress testing, while a typical loss is better for expected-value analysis.
Use your own credible loss history or a documented risk assessment. Do not treat the calculator default as an industry benchmark.
No. Enter values that reflect expected covered amounts and separately review exclusions, waiting periods, sublimits, and aggregation wording.
Insurers use underwriting data and policy language not modeled here. Actual payments also depend on evidence, adjustment, deductibles, limits, and coverage decisions.
| Input concept | How to use it |
|---|---|
| Financial amounts | Use one currency and the same policy period. |
| Probability | Enter a percentage from 0% to 100% based on defensible evidence. |
| Retention or deductible | Use the amount paid by the insured before eligible coverage responds. |