Despite record-setting natural catastrophes, the average TCOR trended lower for the fourth year in a row — a 3-percent decrease, according to the newly released 2018 RIMS Benchmark Survey. 
TCOR (defined as the total cost of insurance premiums, retained losses [deductibles/uninsured losses], and internal/external risk control costs) decreased from $10.07 per $1,000 of revenue in 2016 to $9.75 per $1,000 of revenue in 2017.
The marginal decline was driven by decreases in property, liability, workers’ compensation, management liability, and professional liability costs, as well as a fall in overall risk management administration costs, RIMS said.
“Market conditions are favorable for insurance buyers,” stated David Bradford, co-founder and chief strategy officer of Advisen. “A competitive insurance market resulting from a chronic overabundance of risk capital strongly contributed to TCOR decreasing steadily since 2013.”
One area bucking the trend of lower costs, however, is cyber insurance.
Over the last six years, the proportion of companies buying cyber insurance has risen from 35 percent in 2011 to 65 percent in 2017.
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