Marsh's Casualty Practice is pleased to present the sixth edition of our Casualty Cost of Risk report. This benchmarking report focuses on the three most commonly purchased lines of primary casualty insurance: workers' compensation, general liability, and auto liability. The findings in this report are based on data from Casualty Central, Marsh's proprietary benchmarking database, for bound insurance placements incepting during 2007. The number of programs captured gives us great confidence in the findings.

The results of our study find that the cost of risk dropped in 2007 to $1.77 per $1,000 of revenue, a 23 percent decrease from the $2.30 average for 2006. Our analysis also includes a subset of firms for which we have data from both 2006 and 2007. The cost of risk results for the subset group also shows a downward but less drastic trend, from $1.88 in 2006 to $1.77 in 2007, a decrease of 6 percent. Both changes reflect the ongoing softening of the primary casualty insurance market experienced throughout 2007.

Read Casualty Cost of Risk 2008 in its entirety.