ASTM E2557-16a Standard – Earthquake Probable Maximum Loss (PML)

The ASTM E2557 Standard Practice for Probable Maximum Loss (PML) Evaluations for Earthquake Due Diligence Assessments is a Standard Practice published by ASTM International which describes an approach to calculating PMLs which is commonly used in the financial services industry; however, the standard is not appropriate in all situations.
The practice relies on terminology and criteria for the evaluation of earthquake risks more fully described in the ASTM E2026 Standard Guide for Seismic Risk Assessment of Buildings to describe specific requirements for the evaluation of site stability, building stability and building damageability. Though a specific depth of assessment is not defined, the use of SELDBE is noted as a common tool for the evaluation of properties for the Commercial Mortgage Backed Securities industry. Nonetheless, the objectives and risk tolerance of each user should be considered in establishing an appropriate scope of work.
The previous version of the standard (ASTM E2557-07) was updated and published as ASTM E2557-16a in June 2016.