ULTIMATE LOSS

The total sum the insured, its insurer(s) and/or reinsurer(s) pay for a fully developed loss (i.e., paid losses plus outstanding reported losses and IBNR). It may not be possible to know the exact value of ultimate losses for a long time after the end of a policy period.

Actuaries are employed to assist with these projections for purposes of financial modeling and/or year-end reserve determinations.