New 2008 RIMS Benchmark Survey(TM) Book Finds Total Cost of Risk Falls Again

Annual Publication Reveals Risk Managers Experiencing Material
Benefits as Soft Market Continues to Create Highly Competitive
Insurance Company and Broker Pricing Practices; Accompanying Broker
Study Shines Additional Light on Market Dynamics
NEW YORK--(Business Wire)--
According to the forthcoming 2008 RIMS Benchmark Survey(TM) book
published by the Risk and Insurance Management Society (RIMS), the
commercial insurance industry continued to experience an overall
decline in total cost of risk (TCOR) in 2007. The 2008 RIMS Benchmark
Survey(TM) book provides risk managers with objective and actionable
insurance market information based on the insurance programs of more
than 1,000 participants from the U.S. and Canada.

Insurance professionals use the RIMS Benchmark Survey(TM) book to
monitor and evaluate programs, help negotiate program costs and
design, and navigate the latest risk management trends. This book is
the annual summary of the online version of RIMS Benchmark Survey(TM)
that is updated daily throughout the year. Both the book and the
online version are jointly produced by RIMS and Advisen, Ltd., which
collects and analyzes the data and, for the online service, provides
easy-to-use interactive tools and services.

According to the 2008 RIMS Benchmark Survey(TM) book, another year
free of major natural catastrophes, combined with abundant insurance
market capacity, contributed to falling insurance costs, which in turn
led to lower average total cost of risk (TCOR) per $1,000 of revenue.
Changes in average TCOR between 2006 and 2007 were not evenly
distributed across industries, as some watched TCOR rise and a few
experienced savings of 30 percent or more. But, while changes in TCOR
varied by industry, lower average TCOR was distributed consistently
across all sizes of companies.

New to this year's RIMS Benchmark Survey(TM) book is a special
chapter dedicated to a Broker Services and Remuneration Study. Based
on survey responses from more than 1,300 participants, the study found
that insurance buyers benefited from a highly competitive insurance
brokerage market in 2007. Survey results highlight that brokers are
increasingly competing on the basis of services provided to clients,
but there are significant differences by size of company and industry
group in the types of services provided. The survey also quantifies
the differences in average costs to insurance buyers of fee-based
broker remuneration as opposed to traditional commission-based
remuneration.

Other findings highlighted in this year's book demonstrate that
workers' compensation continued to be one of the most competitive
lines of insurance in 2007, driven by reform measures in several large
states, most notably California. Management liability costs were also
significantly lower, though having less of an impact on TCOR
reduction. And after being buoyed by sharply higher premiums in
catastrophe-exposed premiums -- a legacy of the record-shattering 2005
hurricanes -- property premiums began to edge downward in 2007.

The most significant risk management and insurance event of the
year, the meltdown of the U.S. subprime mortgage market, is expected
to cost the insurance industry billions of dollars in directors and
officers liability and errors and omissions liability losses, and
potentially tens of billions in investment-related losses. However,
the subprime crisis had no apparent impact on overall insurance costs
in 2007.

"The continued soft market has created a buyer's market," says
John R. Phelps, ARM, CBCP, CPCU, member of RIMS Board of Directors and
director of business risk solutions for Blue Cross and Blue Shield of
Florida, Inc. "The 2008 RIMS Benchmark Survey(TM) book and the
accompanying broker services and remuneration study are important
analysis and trending resources for risk managers that benchmark their
programs against the industry. This allows them to take full advantage
of the current market conditions."

"The conditions driving down the cost of risk in 2006 and 2007
should continue in 2008," says David Bradford, editor-in-chief of
Advisen. "Barring large catastrophe losses, which could spark higher
premiums, risk managers should continue to see steadily falling
insurance costs throughout the year while brokers continue to do
battle over pricing and service offerings."

The 2008 RIMS Benchmark Survey(TM) book is comprised of data
collected in the 12 calendar months of 2007 and covers 14 high-level
industry groups (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 survey
provides an expanded view of the insurance industry-based 66
pre-defined industry peer groups and more than 90 lines of business.
The on-line survey also permits users to define peer groups for
benchmarking purposes based on criteria such as industry, territory
and revenue.

Purchase orders are now being taken for the 2008 RIMS Benchmark
Survey(TM) book, which is available for purchase at www.RIMS.org/book.
Special discounts apply to RIMS members and survey data contributors.

About The RIMS Benchmark Survey(TM)

The RIMS Benchmark Survey(TM) is produced by Advisen, Ltd., which
collects and analyzes the data and provides the technology
infrastructure for the survey's online services. Advisen introduced
the "Broker Authorization Letter" that enables Risk Managers and
buyers of insurance to contribute to the RIMS Benchmark Survey(TM) by
designating their broker to provide the client's program details. The
letter is available at www.RIMS.org/brokerform or by calling
+1.212.897.4800. Risk management professionals can also contribute by
e-mailing current and prior year policy schedules to
Benchmark@RIMS.org or by faxing to +1.212.655.7453.

Risk managers who contribute data to the survey can benchmark the
structure of their commercial insurance programs, retained loss costs,
exposure demographics and Total Cost of Risk (TCOR) against a
highly-relevant group of peer companies. Additionally, survey
respondents can use software personalized and configured for their
needs to view detailed schedules of insurance, programs for current
and past years and full-color program tower charts. Both benchmark
charts and program charts download into any presentation for senior
management. The results of the RIMS Benchmark Survey(TM) are available
online or in an annually-published book. Visit www.RIMS.org/benchmark
for details.

About the Risk and Insurance Management Society, Inc

The Risk and Insurance Management Society, Inc. (RIMS) is a
not-for-profit organization dedicated to advancing the practice of
risk management, a professional discipline that protects physical,
financial and human resources. Founded in 1950, RIMS represents more
than 4,000 industrial, service, nonprofit, charitable and governmental
entities. The Society serves more than 10,700 risk management
professionals around the world. For more information, visit
www.RIMS.org.

About Advisen

Advisen, Ltd. equals success for insurance professionals, driving
growth and profitability through the broadest platform of analytics
and information services. Designed and evolved by risk and insurance
experts, and used daily by more than 100,000 professionals, Advisen
combines the industry's deepest data sets with proprietary analytics
and applications that drive the risk and insurance lifecycle. Advisen
is headquartered in New York with offices in London. For more
information, visit www.advisen.com or call +1.212.897.4800.

Advisen, Ltd.
Patrick Ward, 303-262-6078
Cell: 415-595-3145
pward@advisen.com
or
Risk and Insurance Management Society, Inc. (RIMS)
Felicia J. Messimer, 212-655-6059
fmessimer@RIMS.org

Copyright Business Wire 2008