Lower insurance costs and lower risk management administrative costs led to a 3.1 percent drop in the average total cost of risk (TCOR) per $1,000 of revenue in 2009, according to a new report from the Risk and Insurance Management Society (RIMS).
The report also found that workers compensation insurance costs were down substantially in 2009. However, the average D&O premium per $1,000 of revenue increased sharply for banks.
A press release from RIMS quotes David Bradford, Advisen executive vice president and Editor-in-Chief of the survey:
The 2010 RIMS Benchmark Survey Ã¢â‚¬“ which presents data from three separate surveys in one book Ã¢â‚¬“ is an annual guide to the cost of risk for commercial insureds in North America.
Its findings enable 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.