---
title: "LCM Rate Derivation Calculator"
method: POST
path: "/v1/tools/compute_lcm_rate_derivation"
tags: ["TODO_TAGS_REVIEW", "TODO_AP2_EXPORT_REVIEW"]
---

# LCM Rate Derivation Calculator

`POST /v1/tools/compute_lcm_rate_derivation`

## Request

- Base URL: `https://ainumbers.co`
- URL: `https://ainumbers.co/v1/tools/compute_lcm_rate_derivation`
- Auth: none declared

Computes the Loss Cost Multiplier (LCM) and indicated insurance rate from user-supplied loss costs and expense/profit loadings. LCM = 1 / (1 - LAE% - fixed_exp% - variable_exp% - profit%). Indicated rate = loss_cost * LCM. Supports credibility-weighted blending of user's own loss costs with a complement. PROPRIETARY-DATA: this kernel performs LCM decomposition arithmetic ONLY on user-supplied loss costs -- it NEVER embeds, redistributes, or references ISO/Verisk advisory loss cost rate pages (Verisk-proprietary). ASOP 25 compliant. ZERO PII: aggregate rate components only.

**Tool URL:** https://ainumbers.co/chaingraph/art-255-compute-lcm-rate-derivation.html

## Request body

- object
  - `complement_loss_cost` unknown, required
  - `credibility_z` unknown, required
  - `current_rate` unknown, required
  - `fixed_expense_pct` unknown, required
  - `lae_pct` unknown, required
  - `profit_pct` unknown, required
  - `pure_loss_cost` unknown, required
  - `variable_exp_pct` unknown, required

## Response `200`

Successful tool execution result

- object
  - `complement_loss_cost` integer
  - `credibility_weighted_loss_cost` integer
  - `credibility_z` integer
  - `current_rate` string
  - `denominator_valid` boolean
  - `fixed_expense_pct` number
  - `indicated_rate` number
  - `issues` unknown[]
    - unknown
  - `lae_pct` number
  - `lcm` number
  - `lcm_denominator` number
  - `not_legal_advice` string
  - `pii_note` string
  - `profit_pct` number
  - `proprietary_data_notice` string
  - `pure_loss_cost` integer
  - `pure_loss_cost_loaded` number
  - `rate_change_direction` string
  - `rate_change_pct` string
  - `regulatory_basis` string
  - `table_source` string
  - `table_version` string
  - `total_loading` number
  - `variable_exp_pct` number

---

[API](https://skmtc.dev/ainumbers/apis/ainumbers-co-fintech-intelligence-suite.md) · [All operations](https://skmtc.dev/ainumbers/apis/ainumbers-co-fintech-intelligence-suite/llms.txt) · [OpenAPI document](https://skmtc.dev/ainumbers/apis/ainumbers-co-fintech-intelligence-suite/revisions/b462e4f5bb28?raw)