PML (Probable Maximum Loss — acronym)

Reviewed by Apex Insurance Brokers · Last reviewed 2026-06-22

Reviewed by Apex Insurance Brokers · Last reviewed 2026-06-22

Reviewed by Apex Insurance Brokers · Last reviewed 2026-06-22

Category: Pricing & rating · Reviewed by Chrissie Anderson, Client Executive · Last reviewed

PML

PML is the standard acronym for Probable Maximum Loss.

Related acronyms

• EML — Estimated Maximum Loss.
• MFL — Maximum Foreseeable Loss.
• MPL — Maximum Possible Loss (occasionally encountered, synonym for MFL).
• OEP — Occurrence Exceedance Probability (cat-model output that PMLs are often derived from).
• AEP — Aggregate Exceedance Probability.
• AAL — Average Annual Loss.

References

• Industry usage; vendor cat model documentation.

Cross-references

• Probable maximum loss
• Maximum foreseeable loss
• Estimated maximum loss

Maintained by Apex Insurance Brokers. FCA FRN 724952. Companies House 07014570.