Businesses paid 2% more to cover the total cost of risk in 2018 than they did the year before, according to the 2019 Risk & Insurance Management Society Benchmark Survey.

Workers’ compensation costs rose 3% to $2.72 per $1,000 of revenue from $2.64, the nonprofit Risk & Insurance Management Society said in a statement. Workers’ compensation is the third-largest component of total cost of risk, or TCOR.

Liability costs are the largest component and increased nearly 2%. Property costs are the second-largest component of total cost of risk and increased 5%.

Overall, RIMS reports that total cost of risk increased to $9.95 per $1,000 of revenue in 2018 from $9.75 in 2017.

Other findings in the survey include:

• The property and casualty industry had a profitable 2018.
• Total cost of risk was higher in 2018, largely due to rising insurance rates.
• For casualty lines, higher TCOR is in part a response to a higher frequency of very large losses.
• Cyber insurance remains a major success story for insurers as it continues to grow faster than the overall P&C market.

To order a copy of the 2019 RIMS Benchmark Survey, click here.