Mr. Bradford added that this is the first year since 2001 that the total cost of risk has gone down. “Even though in 2004 things were getting softer, the higher retained losses pushed up the total cost of risk a little bit for the year,” he said.

Despite the 2005 hurricanes, “it was an extremely profitable year for the industry overall,” he said, adding that “the trends are still pointing to further softening.”

Mr. Bradford said the book version of the survey is valuable as a reference tool for risk managers for benchmarking their programs and analyzing trends by industry and geography. Risk managers also use the survey to monitor and evaluate programs and help negotiate program costs and design, RIMS said.

Karen Beier, member, RIMS board of directors, membership and chapter services portfolio, said the survey is particularly valuable “when the market is in flux, as it is right now.”

The survey is produced and published by Advisen Ltd., which collects and analyzes the data and provides easy-to-use, online interactive tools and services.

In 2005 the median total cost of risk (TCOR) fell about 11 percent, driven almost completely by lower insurance costs. This was attributed by Advisen analysts to abundant underwriting capacity which led to heightened competition.

Despite the devastation caused by Hurricanes Katrina, Rita and Wilma, the p-c insurance industry posted approximately $55 billion in earnings in 2005, according to the survey.

“Consolidated industry policyholders' surplus, the measure of aggregate insurance industry capacity, rose in 2005 despite the catastrophe losses, and we believe this excess capacity will cause premium prices to decrease,” said Mr. Bradford.

In the executive summary of the survey, he noted that almost every class of business tracked for the survey showed a decrease in the median premium per $1,000 of revenues for the year.

Viewed on a quarter-by-quarter basis, property premiums experienced an upturn in the fourth quarter, but it is likely the increase is only a short-term response to catastrophe losses, RIMS said.

The 104-page book reveals data collected in the 12 months between October 2004 and October 2005 and can by purchased at http://www.RIMS.org/benchmark or by calling 800-655-6590. Price discounts apply to RIMS members and survey data contributors.