Underwriting & Risk - June 8, 2026 - 16 min read
PML, MFL and the COPE Study: How Indian Property Underwriters Derive Maximum Loss and How Brokers Challenge an Inflated PML
Probable Maximum Loss and Maximum Foreseeable Loss are the numbers that drive property reinsurance, net retention and sum-insured adequacy in the post-de-tariff Indian market, and they are derived from a COPE study (Construction, Occupancy, Protection, Exposure). This piece works through how PML and MFL are built from COPE, how separation and sprinkler credits move them, and how a broker can challenge a PML the underwriter has set too high.
By Tarun Kumar Singh
Read article