Self-insure vs insure decision API

Compare retaining vs transferring risk: the certainty-equivalent cost of self-insuring (expected loss + a variance-based risk load scaled by risk aversion) vs the insurance premium, plus the premium loading over expected loss, with a recommendation. Deterministic expected-value decision math. Answers 'should I self-insure', 'retain vs transfer risk', 'is the premium worth it', 'expected loss vs premium'.

Price$0.01per request

MethodPOST

Route/v1/calc/ins-self-insure-vs-insure

StatusLive

MIME typeapplication/json

Rate limit120/minute

CacheNo cache

calcinsuranceself-insurerisk-transferdecisionexpected-valueactuarialretention

API URLhttps://x402.hexl.dev/v1/calc/ins-self-insure-vs-insure

Integration docs

Example request

{
  "annualPremium": 1200,
  "claimProbability": 0.05,
  "claimSeverity": 15000,
  "riskAversion": 1
}

Example response

{
  "method": "self-insure vs insure (expected-value + risk load)",
  "expectedLossCost": 750,
  "riskLoad": 356.25,
  "selfInsureCertaintyEquivalent": 1106.25,
  "insurancePremium": 1200,
  "premiumLoadingOverExpectedLoss": 450,
  "recommendation": "self-insure (retain risk)"
}

Input schema

{
  "type": "object",
  "required": [
    "annualPremium",
    "claimProbability",
    "claimSeverity"
  ],
  "properties": {
    "annualPremium": {
      "type": "number",
      "examples": [
        1200
      ]
    },
    "claimProbability": {
      "type": "number",
      "examples": [
        0.05
      ],
      "description": "0..1"
    },
    "claimSeverity": {
      "type": "number",
      "examples": [
        15000
      ]
    },
    "riskAversion": {
      "type": "number",
      "examples": [
        1
      ],
      "description": ">=0, default 1.0"
    },
    "reservesAvailable": {
      "type": "number",
      "examples": [
        20000
      ]
    }
  }
}

Output schema

{
  "type": "object",
  "additionalProperties": true
}