The average total cost of risk (TCOR) for US corporates increased in 2012, climbing 5% in contrast to a rise of only 1.7% in 2011 and driven largely by firming market conditions, according to the Risk Management Society (RIMS).
RIMS Benchmark Survey
for 2013, produced in partnership with Advisen and based on more than 52,000 insurance programmes from almost 1,500 organisations, found that the average TCOR for all companies rose from US$10.19 per US$1,000 of revenue to US$10.70 per US$1,000 of revenue in 2012 as market conditions hardened. The contribution of property premiums to average TCOR grew nearly 6%, from US$2.92 per US$1,000 of revenue to US$3.09 per US$1,000 of revenue.
A review of Advisen’s umbrella / excess pricing and limit data showed that pricing influences excess insurance programme limit buying trends. When prices were dropping, insurance buyers tended to increase their limits more and when they were increasing, they tended to increase their limits less.
“While 2012 experienced a reduction in insured catastrophe losses, insurers continued to implement rate increases through the year” said Jim Blinn, executive vice president of Advisen’s information and analytics unit and executive editor of the survey. “Continued pressure on underwriting results and a low interest rate environment motivated underwriting management to seek these higher rates.”
“Rates are rising, but our research shows that improving rates attract new capacity, which makes it difficult to sustain the trend towards progressively higher rates,” said RIMS board director Michael Phillipus. “The wealth of information available in the
RIMS Benchmark Survey
arms risk practitioners with powerful industry insight that can help shape their understanding of the market and allow them to fulfil their responsibilities with greater confidence and clarity.”
Sibos 2017 Day Two highlights: Brexit and banking, and why ‘data is the new oil’ in financial services
How nation first politics can impact global financial organisations It’s clear that data and regulation are the two key topics that are ... read more
Rising interest rates, excitement around blockchain use cases and cross-border payments were all hot topics at this year's AFP conference in San Deigo.
On-Demand Treasury Management Solutions continue to gain increased adoption in the US and EMEA regions.
The US dollar and debt yields falling on the North Korea missile test, treasury being a top target for cyber criminals and why treasurers aren't into real-time payments all hit the latest headlines in the world of treasury this week. Don't miss our ten top news stories from around the world.