Posted on 19 Jun 2009
Economic turmoil and the second worst year on record for insured natural catastrophe losses did not deter falling commercial insurance prices in 2008, according to the 2009 RIMS Benchmark SurveyTM book, the annual guide to the cost of risk for commercial insureds in North America. Lower average premiums in almost every line of business contributed to a 9.4 percent drop in average total cost of risk (TCOR) per $1,000 of revenue.
The 2009 RIMS Benchmark SurveyTM book enables risk managers to compare their TCOR to similar organizations and benchmark their insurance program limits and retentions based on data collected on more than 1,300 companies in the U.S. and Canada. The book is the annual print summary of the online RIMS Benchmark Survey™ that is updated daily. Data for the book was compiled and analyzed by Advisen Ltd. for the Risk and Insurance Management Society, Inc. (RIMS). The book is available for a fee of $750 and the online program for a fee of $2,500. Purchase orders are available at www.RIMS.org/book. RIMS members and survey data contributors receive special discounts.
“Risk managers in nearly every industry tracked by the survey saw the average cost of risk fall in 2008,” says Dave Bradford, editor-in-chief of the 2009 RIMS Benchmark Survey™ book and executive vice president at Advisen Ltd. “TCOR is the sum of insurance premiums, retained losses and risk management administrative costs. Of those components, lower average insurance premiums most strongly contributed to the drop in TCOR.”