This document discusses how to effectively manage the total cost of risk. It explains that the total cost of risk includes direct insurance premium costs as well as indirect costs like claims handling expenses, reinsurance costs, and administrative fees. It outlines the key steps in the risk management process and emphasizes analyzing both direct and indirect costs. Finally, it presents a case study of an organization that reduced its total cost of risk through improved driver safety practices and risk management.

1. How to effectively manage your
Total Cost of Risk

2. 2
Agenda
 How is a premium
calculated?
 What is the Total Cost of
Risk?
 The risk management
process
 What are the key success
factors?
 Case study
 Discussion

3. How is a premium calculated?

4. How is a premium calculated?
4
M.I.
Risk
Engineering
Premium
Treaty Reinsurance Costs
Policy Admin Costs
Capital Costs
Statutory Levies
Commissions
Base Premium
Expected Attritional Claims
Provision for Large Losses
Claims Handling Expenses

5. Does size matter?

6. The Total Cost of Risk

7. What are the hidden costs?

8. The Total Cost of Risk
8

9. The Total Cost of Risk
9

10. Zurich’s philosophy and approach to
work-related road risk management

11. 11
The risk management process

12. What are the key success factors?

13. Case study

14. Case study – Iron Mountain
0
100
200
300
400
500
600
700
800
900
1000
2008 2009 2010 2011 2012 2013 2014
NumberofIncidents
14

15. Case study – Iron Mountain
£0
£250,000
£500,000
£750,000
£1,000,000
2008 2009 2010 2011 2012 2013 2014
15

16. 0
500
1,000
1,500
2,000
2,500
Case study – Iron Mountain
16
October 2012 – April 2015
SpeedingIncidents

17. Discussion

18. Contact details
uk.linkedin.com/in/zurichandyprice
+44 (0)7734 336 571 andrew.price@uk.zurich.com