Premium Calculator
Insurance premium impact estimation based on readiness scores, exercise frequency, gap remediation rates, and industry risk factors.
The Premium Calculator estimates the impact of an organization's readiness posture on cyber insurance premiums. It provides carrier-ready projections that connect exercise outcomes to underwriting factors.
How It Works
The calculator takes readiness data as input and produces premium impact estimates from a transparent weighted-factor rubric with a fixed discount-assumption table (see below). The assumptions are stated, not calibrated against carrier actuarial data — treat the output as directional modeling, not a quote.
Input Factors
| Factor | Weight | Source | |---|---|---| | Readiness Score | High | 8-dimension score from the most recent exercise | | Exercise Frequency | Medium | Number of exercises conducted in the past 12 months | | Gap Remediation Rate | Medium | Percentage of identified gaps that have been resolved | | Industry Risk Profile | High | Baseline risk level for the organization's vertical | | Organization Size | Medium | Employee count and revenue range | | Incident History | High | Prior breach or incident count (self-reported) | | Framework Compliance | Medium | Coverage percentage across applicable frameworks |
Output
The calculator produces:
- Estimated premium impact — Percentage increase or decrease relative to industry baseline
- Impact range — Low and high bounds of the premium estimate
- Factor breakdown — How each input factor contributes to the total impact
- Improvement projections — Estimated premium reduction if specific gaps are remediated
Discount Assumptions by Grade
The readiness score drives both the certificate grade and the risk tier. The table below is the
model's assumption table (TIER_DISCOUNT_RANGES in lib/premium-calc.ts) — illustrative
modeling inputs, not observed carrier outcomes. The model only ever projects discounts; it does
not model premium increases.
| Certificate Grade (score band) | Risk Tier | Modeled Discount Assumption | |---|---|---| | A (85-100) | Excellent | 15-25% | | B (70-84) | Good | 8-15% | | C (55-69) | Average | 2-8% | | D (40-54) | Below average | 0-2% | | F (0-39) | High risk | No modeled discount |
Improvement Scenarios
The calculator supports what-if analysis. Security teams can model the premium impact of:
- Conducting additional exercises — How would 4 exercises per year vs. 2 change the premium?
- Remediating specific gaps — What premium reduction would closing the top 5 critical gaps produce?
- Improving specific dimensions — What if the Communications score improved from 45 to 75?
Each scenario produces a revised premium impact estimate and the projected certificate grade change.
Business Value Translation
The calculator translates readiness investment into financial terms:
Annual Premium Savings = Current Premium × Estimated Impact Reduction
ROI = (Premium Savings - Engagement Cost) / Engagement Cost
This calculation is included in the Executive Scorecard deliverable and supports budget justification for ongoing advisory retainers.
Carrier Integration
Premium calculator outputs feed into the Carrier Portal where insurance partners can see the readiness-backed premium impact for their client portfolio. This creates a data-driven underwriting conversation rather than relying solely on questionnaire-based assessments.
Limitations
Premium estimates are projections from the stated assumption table above — the discount ranges are modeling assumptions, not carrier commitments or observed actuarial outcomes. Actual premium changes depend on the specific carrier's underwriting criteria, the policy terms, and market conditions. The calculator provides directional guidance, not binding quotes.