Still, there are ways to lower your premiums. Risk premium formula helps to get a rough estimate of expected returns on a relatively risky investment as compared to. How To Calculate The Volume Of A Prism Engineering When premium is calculated several questions emerged simultaneously. What is the formula to calculate premium . So from the above example, one can see investors in reliance industries will be getting risk premium of 1.5% above the government bond rate. Insurance companies are all about risk assessment. Lic life insurance premium calculator formula; For east malaysia, the basic premium for a new car of each category = Here’s the simple rating formula for manual premium: The following formula is used to calculate a risk premium. The step of premium calculation varies according to the nature of the policy which will be clear later on. To unlock this lesson you must be a study. Where ra is the return on a risk free asset; Significance and use of ...