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Probable Maximum Loss (PML) is a common term used for earthquake loss estimation, but it lacks a precise definition.
Probable Maximum Loss (PML) is a term used in the insurance industry as well as Commercial Real Estate.
Partner is a national due diligence provider for Phase I environmental site assessments, property condition assessments, probable maximum loss reports, construction services, and site mitigation and clean-up.
Along the way, the term Probable Maximum Loss (or PML) came into use, but had many different definitions based on the risk tolerance of various lenders and owners.
In 1999, ASTM produced guidelines for reporting seismic loss estimates on commercial properties, commonly known as Probable Maximum Loss or PML reviews.
When running a probabilistic model, the output is either a probabilistic loss distribution or a set of events that could be used to create a loss distribution; probable maximum losses (PMLs) and average annual losses (AALs) are calculated from the loss distribution.