April 1, 2016 by Canadian Underwriter
Due to declines in property and liability costs and overall risk management costs, North American businesses paid 2% less in 2015 than they did in 2014 to cover the total cost of risk (TCOR), according to the 2016 RIMS Benchmark Survey.
The annual RIMS survey, produced with Advisen Ltd., a commercial insurance and risk professional information provider, was released on Thursday. The survey – which includes industry data on more than 52,000 insurance programs from 1,457 organizations – tracks changes in insurance policy renewal prices as reported by North American corporate risk managers. It defines TCOR as the cost of insurance, plus the costs of the losses that are retained, and the administrative costs of the risk management department.
RIMS noted in a statement that the 2016 survey included a first-ever special chapter examining cyber insurance coverage, which found that the total cost of cyber risk for survey respondents was just US$0.38 per US$1,000 of revenue.
Other key findings of this year’s survey:
“The tremendous growth of cyber risks and insurance options drove us to include a new section analyzing the market for cyber insurance,” explained Jim Blinn, executive vice president and global product manager at Advisen, in the statement. “Risk managers will now have greater insight into the marketplace as well as the practices of their peers in purchasing this important coverage.”