Organizations managed to pay 5% less in 2016 to cover their risks, according to RIMS’ 2017 benchmark survey. The survey is based on a total cost of risk metric (TCOR), which calculates the cost of insurance, retained losses, and risk management department overhead for every $1,000 of revenue. How good is your sense of what risks cost? Take our quiz.
1. What was the average TCOR for the 553 North American organizations (across all industries) studied by RIMS in 2016?
2. Last year’s decrease in companies’ average TCOR was driven by declines in the cost of risk for eight types of commercial insurance. For which line of coverage did the cost actually rise?
B. Fidelity, Surety, and Crime
C. Workers’ Compensation
3. What was the average number of risk management staff for the organizations studied?
4. The cost for property insurance and most lines of liability coverage will continue to drop in 2017, according to Wells Fargo. What was the range of decreases in insurance premiums the bank predicted for this year?
A. Flat to 5%
B. Flat to 10%
C. Flat to 15%
D. Flat to 13%
5. Driven by Hurricane Matthew and other natural disasters, the insurance industry’s total insured losses in 2016 were significantly higher than in 2015. What were the total insured losses for 2016?
A. $55 billion
B. $37 billion
C. $75 billion
D. $49 billion
6. How many insurance carriers offer cyber insurance?
A. More than 30
B. More than 60
C. More than 40
D. More than 100
Source: RIMS, 2017 Benchmark Survey
Answers: 1–C; 2–B; 3–A; 4–B; 5–D; 6–B