2015 RIMS Benchmark Survey Now Available
New York, NY (July 30, 2015) – In a relatively stable insurance market, businesses paid nearly 1 percent (.99%) less in 2014 than they did in 2013 to cover the total cost of risk (TCOR) after three consecutive years of increases, according to the 2015 RIMS Benchmark Survey.
TCOR is the cost of insurance, plus the costs of the losses that are retained, and the administrative costs of the risk management department.
Key findings from this year’s RIMS Benchmark Survey:
- Management liability, workers compensation, liability, and property costs declined.
- Average TCOR fell 1 percent from $10.90 per $1,000 of revenue in 2013 to $10.80 in 2014.
- Risk management administration costs dropped 5 percent as costs for both outside services and risk management department declined.
The annual RIMS survey, produced with Advisen Ltd., is a single source of benchmark statistics with industry data for more than 52,000 insurance programs from almost 1,500 organizations – including the programs of 249 Fortune 500 companies. It tracks changes in insurance policy renewal prices as reported by North American corporate risk managers.
“The 2014 survey results reflect the overall stability of the U.S. property/casualty market. One notable driver is the increasing role of alternative capital in assisting reinsurers to deal with economic uncertainties. A related factor is the rising importance of predictive models among insurers not only in the area of property, but also for cyber and casualty,” Jim Blinn, Executive Vice President and Global Product Manager at Advisen, said.
Commenting on what the industry expects in the second half of 2015, Blinn said commercial property/casualty insurers are beginning to see a softening market. “We are looking at a period of rate decreases in insurance premiums owing to rising competition in the market and more than enough available capacity.”
To order a copy of the 2015 RIMS Benchmark Survey, visit www.RIMS.org/book.
“In order to help our organizations make smart, strategic decisions, risk professionals rely heavily on benchmarking statistics to gain buy-in from leadership,” said RIMS President Rick Roberts. “RIMS Benchmark Survey not only provides an overall assessment of the insurance market but, with a breakdown of sectors and coverages, it puts practitioners in a great position to showcase the value they bring to their organizations.”
Advisen is leading the way to smarter and more efficient risk and insurance communities. Through its information, analytics, ACORD messaging gateway, news, research, and events, Advisen reaches more than 150,000 commercial insurance and risk professionals at 8,000 organizations worldwide. The company was founded in 2000 and is headquartered in New York City, with offices in the US and the UK. Visit www.advisenltd.com to learn more.
As the preeminent organization dedicated to advancing the practice of risk management, RIMS, the Risk Management Society™, is a global not-for-profit organization representing more than 3,500 industrial, service, nonprofit, charitable and government entities throughout the world. Founded in 1950, RIMS brings networking, professional development and education opportunities to its membership of more than 11,000 risk management professionals located in more than 60 countries. For more information on RIMS, visit www.RIMS.org.