2014 RIMS Benchmark Survey Now Available
July 28, 2014 – According to the newly released RIMS Benchmark Survey, the average Total Cost
of Risk (TCOR) trended higher for the third year in a row – a two percent increase from $10.70 per $1,000 of
revenue in 2012 to $10.90 per $1,000 of revenue in 2013. 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.
findings of the 2014 RIMS Benchmark Survey include:
- Average TCOR for all companies increased two percent
in 2013 after increasing five percent in 2012 and 1.7 percent in 2011 –
reflecting the influence of hardening insurance market conditions.
- The contribution of property premiums to average
TCOR rose nearly 15 percent, from $3.09 per $1,000 of revenue to $3.54 per
$1,000 of revenue.
- Rising prices are influencing companies’ retention
“While the RIMS Benchmark Survey monitors changes in insurable
risk costs and financing methods, it also provides valuable insight into the
range of significant losses that affect organizations including the Foreign
Corrupt Practices Act, Environmental Penalties, False Claims Act, and
Shareholder lawsuits,” Jim Blinn, Executive Vice President at Advisen
commented. “With the growth of Enterprise Risk Management, understanding
the breadth of exposures and their impacts becomes increasing important.”
order a copy of the 2014 RIMS Benchmark Survey, visit www.RIMS.org/book.
value of risk management and its impact on an organization’s sustainability has
emphasized the importance of developing comprehensive risk financing
programs. However, the task of developing such programs has become more
challenging as programs become more complex,” said RIMS President Carolyn
Snow. “Benchmarking the total cost of risk gives risk managers an
undeniable advantage when structuring their risk financing programs, especially
in today’s competitive insurance market.”
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