Calculating premiums for policy changes

Last updated: March 6, 2026

Overview

amplo displays three premium values on a policy: Initial, Current Term, and Annualized. Together, these values help you understand how a policy’s premium has changed over time and support reporting, renewals, and financial analysis.

Instead of manually tracking premium adjustments, you can quickly see the original premium, the current premium for the term, and the standardized annual amount. This article explains how amplo calculates each value.

Initial premium

The Initial Premium represents the premium at the policy’s inception. You can find it in the Details tab of the policy.

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Package policies

  • Initial premiums are entered at the line of business (LOB) level.

  • These amounts roll up to the parent policy total.

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Monoline policies

  • The initial premium is entered directly into the Annualized Premium field.

The annualized premium on a monoline policy is entered directly into the annualized premium field. On package policies, premiums are entered on the lines of business (LOBs) and the totals roll up .png

Premium calculation

Current term

When a policy change occurs—such as an endorsement or recalculation—amplo updates the premium accordingly. The updated value appears as the Current Term Premium in the policy details.

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Current Term Premium = Initial (Annualized) Premium ± policy change premium

This value reflects the actual premium for the current policy term after all changes.

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Annualized

The Annualized Premium standardizes the premium to a full-year amount. This allows you to compare policies consistently, even if endorsements occur mid-term.

Annualized Premium = Initial Premium + annualized value of all policy changes ((as if those changes had been effective for the entire policy term)

Several factors can change exactly how the annualized premium calculation works:

  • Pro-rata vs. short-rate cancellation methods

  • Mid-term endorsements

  • Multiple policy changes within the same term

  • Policy-specific rating factors

Troubleshooting

If the annualized premium calculation appears incorrect:

  1. Verify all effective dates for policy changes.

  2. Check for overlapping endorsements.

  3. Confirm the correct cancellation method is being applied.

  4. Review any rating factors or discounts that may impact the premium.