The Risk Insurance Management Society has recently publishedtheir 2006 Annual Benchmark Survey. According to the newpublication, the commercial insurance industry continued toexperience an overall decline in total cost of risk in 2006. The2006 RIMS Benchmark Survey book provides risk managers withobjective and actionable insurance market information based on theinsurance programs of more than 1,200 participants from the U.S.and Canada.

According to RIMS, The book is comprised of data collected inthe 12 calendar months of 2006 and covers 14 high-level industrygroups (Energy, Telecommunications, Professional Services, Banks,Consumer Staples, Education, Government/Non-profit, Healthcare,Information Technology, Utilities, Consumer Discretionary,Industrials, Materials and Non-bank Financials). The online surveyprovides an expanded view of the insurance industry based on morethan four years of data (2003-2007). The online survey alsoprovides a broader view of insurance groups, covering 35lower-level industry groups.Insurance professionals use the RIMSBenchmark Survey to monitor and evaluate programs, help negotiateprogram costs and design, and navigate the latest risk managementtrends. This book is the annual summary of the online version ofthe RIMS Benchmark Survey that is updated daily throughout theyear. Both the book and the online version are produced by Advisen,Ltd., which collects and analyzes the data and, for the onlineservice, provides easy-to-use interactive tools and services.According to a release by the Risk Insurance Management Society,the Benchmark Survey book reported that the above-average seasonfor hurricane activity predicted by meteorologists nevermaterialized. All the same, hurricane losses were a significantcontributor to the total cost of risk of North American firms andgovernment entities in 2006 as the impact of the record-shatteringhurricanes of 2005 reverberated across 2006. Property insurancepremiums skyrocketed not only in hurricane-exposed coastal areas,but also in California as lessons learned from Hurricane Katrinawere factored into earthquake pricing models. But while premiumsfor properties in catastrophe-exposed regions were off the chart,insurance costs for property insurance in other regions and formost other lines of business, continued the downward march thatbegan in 2004.

Key findings in the 2006 RIMS Benchmark Survey book include:oProperty costs rose sharply in catastrophe-exposed regions,substantially offsetting decreases in other regions.o Workerscompensation costs fell again in 2006, driven substantially byreform measures in several large states.o The average total cost ofrisk fell by 9.2 percent for all survey participants, though therewas wide variation by industry.”The insurance market is veryunsettled at this moment,” says Joseph Restoule in a release, RIMSsecretary and member of the board of directors. “The RIMS BenchmarkSurvey helps risk managers better assess current conditions andidentify important trends impacting insurance purchase decisions.By benchmarking their programs against those of their peers, riskmanagers can make more informed decisions about how much coverageto buy, how much risk to retain and how much to pay forinsurance.”

Purchase orders are now being taken for the book, which willship in mid-May. The book is available for purchase atwww.rims.org. Special discounts apply to RIMS members and surveydata contributors.

Interested in more risk management news and in-depth articles?Head over to Claims' risk management channel for moreinformation.