The average total cost of commercial risk (TCOR) per US$1,000 dropped 9.4% in 2008, according to the 2009 RIMS Benchmark Survey.
Advisen Ltd. compiled and analyzed data on more than 1,300 companies in the United States and Canada. Data was collected in 2008 and covers 14 high-level industry groups (including energy, telecommunications, professional services, banks, consumer staples, education, etc.).
Researchers found that despite economic turmoil and the second-worst year on record for insured natural catastrophe losses, premiums in almost every line of business were lower on average.
“Risk managers in nearly every industry tracked by the survey say the average cost of risk fell in 2008,” said David Bradford, editor-in-chief of the 2009 RIMS Benchmark Survey book and executive vice president at Advisen.
“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.”