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Total Cost of Risk Jumps 5% in 2012 -- RIMS Benchmark Survey Now Available 7/11/2013

 

  NOW AVAILABLE: 2013 RIMS Benchmark Survey™ Provides Industry Data From More Than 52,000 Insurance Programs

NEW YORK (July 11, 2013) – According to the newly released 2013 RIMS Benchmark Survey™, the average Total Cost of Risk (TCOR) increased in 2012 – climbing five percent in 2012 as opposed to its increase of only 1.7 percent in 2011 – driven largely by firming market conditions. 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.

 

Key findings of the 2013 RIMS Benchmark Survey:

·     Average TCOR for all companies increased five percent, from $10.19 per $1,000 of revenue to $10.70 per $1,000 of revenue – the result of hard market conditions.

·     A review of Advisen’s umbrella / excess pricing and limit data showed that pricing influences excess insurance program limit buying trends. When prices were dropping, insurance buyers tended to increase their limits more. On the other hand, when prices were increasing, they tended to increase their limits less.

·      The contribution of property premiums to average TCOR grew nearly six percent, from $2.92 per $1,000 of revenue to $3.09 per $1,000 of revenue.

“While 2012 experienced a reduction in insured catastrophe losses, insurers continued to implement rate increases through the year” said Jim Blinn, Executive Vice President of Advisen’s Information and Analytics unit and Executive Editor of the Survey. “Continued pressure on underwriting results and a low interest rate environment motivated underwriting management to seek these higher rates.”

 

“Rates are rising, but our research shows that improving rates attract new capacity, which makes it difficult to sustain the trend towards progressively higher rates,” said RIMS Board Director Michael D. Phillipus, ARM.  “The wealth of information available in the RIMS Benchmark Survey arms risk practitioners with powerful industry insight that can help shape their understanding of the market and allow them to fulfill their responsibilities with greater confidence and clarity.”  

 

The 2013 RIMS Benchmark Survey is available for purchase at www.RIMS.org/book.  Data contributors receive the book for free; RIMS members who did not contribute data, $599; Non-RIMS members who did not contribute data to this edition pay $899.  For questions about ordering, billing or for special pricing for multiple copies, e-mail RIMScore@advisen.com.

On Thursday, July 18th at 11 a.m. EDT, a panel of risk and insurance experts from Allied World, RIMS and Advisen will present a free one-hour, live webcast titled “State of the P&C Insurance Market  Meets the RIMS Benchmark Survey.”  For more information about the webinar or to register, visit https://advisen.omnovia.com/register/68501370889939

About The RIMS Benchmark SurveyTM
RIMS Benchmark Survey is produced by Advisen, Ltd., which collects and analyzes the data and provides the technology infrastructure for the survey’s online services. Risk managers and buyers of insurance either contribute directly to RIMS Benchmark Survey or by using our “data participation letter” to authorize their broker to provide the client’s 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. Contributors receive the final RIMS Benchmark Survey ™ at no charge.

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 Survey™ are available online or in an annually-published book. Visit www.RIMS.org/benchmark for details.


About Advisen

Advisen generates, integrates, analyses and communicates unbiased, real-time insights for the global community of commercial insurance professionals. As a single source solution, Advisen helps the insurance industry to more productively drive mission critical decisions about pricing, loss experience, underwriting, marketing, transacting or purchasing commercial insurance.

Advisen's data, analytics and news services are game-changers for more than 125,000 professionals.  Visit us at www.advisen.com or contact support@advisen.com to learn more.

 


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About RIMS

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.

 

For more information, contact:

Josh Salter, RIMS communications manager, (212) 655-6059 or jsalter@RIMS.org

To be notified of new Press Releases by email, join RIMS Press List.

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