Word forms: (regular plural) estimated maximum losses
(Insurance: Commercial insurance)
loss , loss
Possible maximum loss may arise from more remote scenarios than those for probable
or estimated maximum loss, and therefore carry higher values. Estimated maximum loss is a measure of exposure used in rating or to judge outwards reinsurance requirements. Estimated maximum loss is the amount of risk that an underwriter estimates the insurer will be able to cover
before ceding any surplus to a reinsurer.
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