RIMS/Advisen: Competitive Market Spurs Continued Decline in TCOR for Third Year
2017 RIMS Benchmark Survey Now Available.
- New York, NY (1888PressRelease) April 19, 2017 - Despite rising uncertainty and increasingly more complex risk profiles, businesses saw a decline in the total cost of risk (TCOR) for the third year in a row, according to the 2017 RIMS Benchmark Survey. The Benchmark Survey, produced with Advisen, 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.
Key findings from this year's RIMS Benchmark Survey:
• Technological advances have caused a seismic shift in the risk landscape, creating new types of claims and forcing insurers to consider new products and solutions for customers.
• Insurers ended 2016 with average capital and surplus at its highest level in 10 years. However, excess capacity is undermining profitability, as seen by falling net income and return on average equity.
• The personal insurance space is in the midst of a consumer-centric revolution, offering customers new transaction platforms, better metrics and more flexible pricing and coverage options. Commercial insurance is expected to adopt a similar focus, transforming the way business is transacted.
• Predicted rate increases for cyber, E&O and workers' compensation failed to materialize across the board. Projections for 2017 are more moderate, with property and most liability lines flat to down 10%.
• Emerging trends in the 2017 risk landscape include the tech revolution, security issues, natural catastrophes and political upheaval.
The annual RIMS survey, produced with Advisen Ltd., is a single source of benchmark statistics with industry data for more than 20,000 insurance policies from 759 organizations, 553 of whom contributed data in 2016. These insurance programs represent over $4 billion in premium. It tracks changes in insurance policy renewal prices, retained loss costs and administrative costs as reported by North American corporate risk managers. Advisen compiles policy information within 10 insurance coverage lines and reports on 14 distinct industry groups, in addition to aggregating a summary of all responses.
"The RIMS Benchmark Survey chronicles the evolution of corporate risk management costs over time. This year's edition highlights how risk managers have effectively managed costs in a time of evolving risks and demands, enabling them to do more with less," said Jim Blinn, Executive Vice President of Client Solutions at Advisen.
"Organizations lean on their risk professionals to inform strategic decision-making," said RIMS President Nowell Seaman. "The RIMS/Advisen Benchmark Survey puts valuable data in risk professionals' hands. It allows them to see and understand where others in their industry have made significant risk management investments, where they have saved and highlights great opportunities to further enhance their risk programs."
To order a copy of the 2017 Benchmark Survey, visit the Advisen website or www.RIMS.org/book.
About Advisen
Advisen is the leading provider of data, media, and technology solutions for the commercial property and casualty insurance market. Advisen's proprietary data sets and applications focus on large, specialty risks. Through Web Connectivity Ltd., Advisen provides messaging services, business consulting, and technical solutions to streamline and automate insurance transactions. Advisen connects a community of more than 200,000 professionals through daily newsletters, conferences, and webinars. The company was founded in 2000 and is headquartered in New York City, with offices in the US and the UK. Visit www.advisenltd.com to learn more.
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 10,000 risk management professionals located in over 60 countries. For more information on RIMS, visit www.RIMS.org.
Media Contacts:
Josh Salter
+1.212.655.6059
jsalter ( @ ) RIMS dot org
Charlene Farside
+1.646.831.6367
cfarside ( @ ) advisen dot com
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