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