1.10 Building Portfolio Probable Maximum Loss (PML) Assessments

• Numerous portfolios of building assets have been assessed, including commercial, industrial, transportation, lifeline and hospital facilities.

• Each assessment has involved identification of the likely effects of a maximum credible earthquake likely to have the worst effect on the portfolio of assets.

• Varying techniques have been used to assess losses. All are based on assessing ground shaking effects and then likely damage.

• Damage to assets was assessed either by applying a damage function, or by identifying specific effects and estimating the cost of reinstatement.

• Results were used by owners and insurance brokers to obtain the best possible terms for earthquake insurance.