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earthquake loss estimation model - IIASA

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RISK RETENTION AND TRANSFER PARAMETERS<br />

Summary<br />

• Average Annual Loss. AAL is the expected<br />

<strong>loss</strong> per year and is equivalent to the Pure<br />

Risk Premium, PRP.<br />

• Probable Maximum Loss. PML represents<br />

the <strong>loss</strong> amount for a given annual<br />

exceedance frequency, or its inverse, the<br />

return period.

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