Nonono, individual actors may die and be revived later, but once the party wipes the game deletes all savegames belonging to the current playthrough (can be identified by adding a unique id to $game_system on game start. Timestamps are usually good for this) ^^
The problem is, of course, that people will start exporting their savefiles and reimport later
So players can falsely claim they've beaten the Ironman difficulty even when their parties experienced lots of deaths lol
Now, my jokes about how to counter

Really, just don't take them seriously XD)
1. Generate an unique id for all save files in the same playthrough(so that id would be generated for each new game and stored in the save files)
2. Copy that unique id to the game database itself(.rvdata2 files), and add a flag to indicate whether the permanent death of the playthrough with that unique id has been triggered. If that's the case, all save files having such ids will be deleted instead of loaded.
Oh wait, smart people can then backup the game database itself instead.
So unless there's a server checking all the existing Incitement 2 copies(so when starting the game, it'd connect to that server, and the unique id with its flag will be stored in that server instead), it's impossible to stop players from cheating.
Of course, Incitement 2 would then need scripts to connect to the server, so the game can give the save file unique ids to that server(with read/write commands specified), and receive their flags results from that server for the read case.
A rather powerful server would also be needed, as those unique ids with their flags need to be permanently stored(you've no way to check if all save files with those unique ids are permanently gone for all Incitement 2 copies).
Well, no one would ever overdo stuffs to this extent just to stop some players from falsely claiming they've beaten the Ironman difficulty, especially when it's a free game while maintaining that server would cost money
On a side note:
That's why I'm generally against using "deleting save files when some conditions are met" at all. It can be easily countered in most cases, and eliminating all those counters would most likely end up with ridiculously overdoing stuffs.