ultimate loss
The ultimate loss is the total sum the insured, its insurer(s), and/or its reinsurer(s) pay for a fully developed loss (i.e., paid losses plus outstanding reported losses and incurred but not reported losses).
Additional Information
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.
Synonyms
developed losses
