The latest Risk and Insurance Management Society (RIMS) benchmark survey finds the average total cost of risk per $US1000 of revenue declined by 3.1% last year due to lower insurance premiums and risk management administration costs.

The total cost of risk represents the total cost of insurance premiums and retained losses, as well as internal and external risk control costs.

The 2010 RIMS benchmark survey includes data collected from more than 1400 companies. It says the cost of workers’ compensation insurance also dropped significantly last year, while directors’ and officers’ liability premiums increased dramatically for banks.