The cost of risk increased only mildly in the past year despite catastrophe losses that were expected to affect premiums, according to the Risk and Insurance Management Society (RIMS).

The US-based body’s annual benchmarking survey says the average total cost of risk (TCOR) for all companies increased 1.7% from $US10.02 to $US10.19 per $US1000 ($9.97 to $10.15 per $996) of revenue.

The contribution of property premiums to the average TCOR grew nearly 9%, from $US2.73 to $US2.92 ($2.71 to $2.90) per $US1000 of revenue.

The survey’s editor, Dave Bradford, says globally 2011 was a near-record year for insured catastrophe losses.

“As a result, the price of property insurance coverage increased for many insureds, especially in catastrophe-exposed areas,” he said.

“This was one of the most significant reasons TCOR grew in 2011.”

RIMS says that as more organisations recognise the benefits of social media for communication, most risk professionals surveyed believe social media poses at least a moderate threat to their organisations.