To derive the final Cover Price, the cover amount and cover period are taken into consideration. The cover amount and cover period are specified by the user. The inputs are listed below.
- Cover quantity The cover amount is specified by the policyholder or provider.
- Cover period Length of the cover period specified by the policyholder or provider (in months).
- Annual insurance cost The real rate for an annual insurance cover that the policyholder would pay
- Chosen premium fee The policyholder or provider can choose the premium fee as they wish. However, listings without reasonable premium fees will be unlikely to be taken up by other market participants
- Premium Fee = both the provider and the policyholder can set the premium fee freely when creating a new insurance cover request or offer.