The report shows that the combined impact of lower insurance costs and lower risk management administrative costs led to a 3.1 percent drop in average total cost of risk (TCOR) per $1,000 of revenue in 2009. Other major conclusions drawn from the survey include that workers compensation insurance costs were down substantially and that the average D&O premium per $1,000 of revenue increased sharply for banks.
The 2010 RIMS Benchmark Surveyâ¢ book, the annual guide to the cost of risk for commercial insureds in North America, 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 1,400 companies in the U.S. and Canada. The book is the annual print summary of the online RIMS Benchmark Surveyâ¢ 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.
âFalling insurance premiums were the largest contributor to lower TCOR in 2009,â said Dave Bradford, Advisen executive vice president and Editor-in-Chief of the Survey. âRisk management administrative expenses also were lower. Both were likely influenced by the depressed economy. The Survey provides risk managers a powerful tool for understanding the various elements of TCOR and for explaining to senior management the impact of economic forces and the insurance pricing cycle on the cost of risk.â
The 2010 book presents data from three new surveys, covering workers compensation best practices, the roles and responsibilities of risk managers and insurer/insurance-related services, respectively. Key findings from those surveys include:Â
- Effective return to work programs are strongly correlated with lower workers compensation experience modification factors.
- Risk managers have assumed additional responsibilities in recent years, though relatively few are involved in leadership roles in enterprise risk management and supply chain risk management.
- The leading factor taken into account when selecting an insurer is price.Â
âDuring the economically uncertain times in which we live, risk managers are under constant pressure to review and improve performance, while doing more with less,â says Robert Cartwright, CRM, member of RIMS board of directors. âIt is only through benchmarking that this can be done accurately and we are proud to have been offering this insight to risk managers for the past three decades.â
The 2010 RIMS Benchmark Surveyâ¢ book comprises data collected in 2009 and covers 14 high-level industry groups (Energy, Telecommunications, Professional Services, Banks, Consumer Staples, Education, Government/Non-profit, Healthcare, Information Technology, Utilities, Consumer Discretionary, Industrials, Materials and Non-bank Financials). The online survey provides an expanded view of the insurance industry, based on 66 pre-defined industry peer groups and more than 90 lines of business. The online survey also permits users to define peer groups for benchmarking purposes based on criteria such as industry, territory and revenue.
About RIMS Benchmark SurveyTM
RIMS Benchmark Surveyâ¢ is produced by Advisen, Ltd., which collects and analyzes the data and provides the technology infrastructure for the surveyâs online services. Risk managers and buyers of insurance either contribute directly to RIMS Benchmark Surveyâ¢ or by using a âdata participation letterâ to authorize their broker to provide the clientâs program details. The letter is available at www.RIMS.org/brokerform or by calling 800-655-6590. Risk management professionals can also contribute by e-mailing current and prior year policy schedules to Benchmark@RIMS.org or by faxing to 212-655-7453.Â
Risk managers who contribute data to the survey can benchmark the structure of their commercial insurance programs, retained loss costs, exposure demographics and total cost of risk (TCOR) against a highly relevant group of peer companies. Additionally, survey respondents can use software personalized and configured for their needs to view detailed schedules of insurance, programs for current and past years and full-color program tower charts. Both benchmark charts and program charts can be downloaded into any presentation for senior management. The results of the RIMS Benchmark Surveyâ¢ are available online or in an annually-published book. Visit www.RIMS.org/benchmark for details.
Advisenâs data, analytics and news offerings are game-changers for 100,000 commercial P&C professionals. For Underwriters, Reinsurers, Brokers and Risk Managers, the resources of Advisen provide productivity and insight into underwriting, marketing, broking and purchasing commercial insurance. Configurable applications allow Advisen to customize each solution and/or craft special offline delivery, too. Our result is a measurable increase in your book of business and more favorable insurance transactions. Visit us at http://www.advisen.comor contact firstname.lastname@example.org learn more.