MLchartDataset catalogue

Probable maximum loss (PML)

Term · Insurance and risk management · MLC-T-INS-002689

An estimate of the largest loss that an insurer is likely to sustain from a single event or a series of related events, considering realistic scenarios and risk mitigation measures. It represents a high-end, but not absolute worst-case, loss expectation for underwriting and capital allocation purposes. PML is often expressed as a percentage of the total insured value or as a specific monetary amount.

Table 1. Record
IdentifierMLC-T-INS-002689
FieldInsurance and risk management
AbbreviationPML
Record as JSON 
{
  "id": "MLC-T-INS-002689",
  "term": "Probable maximum loss (PML)",
  "field": "Insurance and risk management",
  "definition": "An estimate of the largest loss that an insurer is likely to sustain from a single event or a series of related events, considering realistic scenarios and risk mitigation measures. It represents a high-end, but not absolute worst-case, loss expectation for underwriting and capital allocation purposes. PML is often expressed as a percentage of the total insured value or as a specific monetary amount.",
  "abbreviation": "PML",
  "url": "https://mlchart.com/terminology/insurance/probable-maximum-loss-pml/"
}

Record 2,690 of 3,682 in Insurance and risk management terminology (MLC-0106). Request the full dataset.