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P04 / TCORPROFESSIONAL TOOL

Total Cost of Risk (TCOR) Calculator

Aggregate your true cost of risk across premiums, retained losses, administration, and risk control expenditure. Compare four scenarios including a high loss year and improved risk management.

GuideTotal Cost of Risk: What TCOR Actually Measures
Risk and Coverage Cluster

Professional users usually need to move between exposure sizing, limit adequacy, and scenario modelling. This cluster keeps those supporting paths shallow and crawlable.

Risk Cost Inputs
£
Claims within deductible / excess
£
Broker fees, loss adjusters, internal risk staff
£
Training, inspections, safety systems
£
Context
Used to calculate TCOR per £1,000 revenue
£
Base Case
Total Cost of Risk (TCOR)
£680,000
TCOR Rate
68.00
per £1,000 revenue
TCOR as % Revenue
6.80%
Cost Breakdown
Insurance Premiums
£450,000
66.2%
Retained Losses
£120,000
17.6%
Administrative Costs
£65,000
9.6%
Risk Control Costs
£45,000
6.6%
Scenario Comparison
Base Case
£680,000
High Loss Year
£869,750+27.9%
Improved Risk Mgmt
£614,000-9.7%
Higher Self-Insurance
£636,000-6.5%
Premiums
Retained Losses
Admin
Risk Controls
Base Case — Detail
TCOR
£680,000
TCOR Rate /£1k revenue
68.00
vs Base
INDICATIVE ONLY — TCOR calculations are illustrative and depend on accurate loss data, policy terms, and organisational context. Scenarios are modelled approximations. Consult your risk manager, actuary, or insurance adviser before using results for decision-making.
Cluster Hubs

Use these organising pages when you want the main calculators and supporting guides for this topic grouped in one place.

Open the risk management and coverage hubGroup exposure, coverage, limit, and capital tools within one professional cluster.Open the advisory analytics and automation hubKeep adjacent professional guides and commercial tools connected in one organiser page.
Related Calculators

Move sideways to closely related calculators without leaving the same topic cluster.

Use the Business Interruption Sum InsuredCalculate BI sum insured using gross profit, trend uplift, indemnity period, and ICOW.Use the Coverage Gap AnalysisMap policy limits against exposures across property, liability, BI, and cyber lines.Use the Risk Score & Heat MapScore risks by likelihood and impact. 5×5 heat map, editable register.Use the Cyber Risk ExposureEstimate breach costs, risk score, and recommended cover limit based on security controls.
Related Guides

Use these supporting explainers when you need the formula, assumptions, or decision framing behind the numbers.

Read Parametric Insurance: Instant-Payout Weather TriggersBusiness Interruption Sum Insured: How It WorksWork through BI sum-insured logic and indemnity-period sizing.Human Life Value: How Income Replacement Maths WorksKeep protection-gap and income-replacement framing attached to the broader coverage cluster.Cyber-Resilient Agency: Protecting Client DataConnect breach exposure to control investment and coverage planning.