Despite the challenges ofΒ a slowed economy in an election year, a shifting risk landscape as a result of technological advances, and a slow to negative growth rate in some sectors,Β 2016 saw the total cost of risk (TCOR) decline for the third consecutive year, according to the 2017 RIMS Benchmark Survey.
Even in the face of suchΒ uncertainties, the TCOR per $1,000 of revenue continued to drop, ending at $10.07 in 2016. The main drivers were declines in all lines excluding fidelity, surety and crime costs, according to the report. TCOR is defined inΒ the survey as the cost of insurance, plus the costs of the losses retained and the administrative costs of the risk management department.
The survey encompasses industry data from 759 organizations and contains policy-level information from 10 coverage groups, subdivided into 90 lines of business.
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http://www.riskmanagementmonitor.com/total-cost-of-risk-drops-for-third-straight-year-rims-finds/
Source: DRJ New feed
