Total cost of risk dropped almost 10% in the US last year, according to a RIMS benchmark
Economic turmoil and the second worst year on record for insured natural catastrophe losses did not deter falling commercial insurance prices in 2008, according to a new survey.
US commercial insurance buyers experienced lower average premiums in almost every line of business, according to the 2009 RIMS Benchmark Survey. This contributed to a 9.4 % drop in average total cost of risk (TCOR) per $1,000 of revenue.
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, said the authors.
The survey was based on data collected on more than 1,300 companies in the US and Canada.
The survey is available for a fee from the RIMS website.
