Risk management compensation rises

A compensation survey of the Canadian and U.S. risk management profession conducted jointly by the Risk and Insurance Management Society Inc. (RIMS) and Mercer Human Resource Consulting suggests that the total cash earnings of risk managers rose by between 10%-25% over the past year. The only employment position in risk management where salary earnings growth remains flat is that of administrative assistants, a RIMS statement says.The total cash and bonus compensation of risk managers was evaluated across a spectrum of positions within the field. As such, the survey identifies two risk management positions of "claims manager" and "insurance management professional". The average total cash compensation of claims managers rose this year by 24.8% to US$83,000 from last year’s US$67,000 level. In contrast, the average total cash compensation of insurance management professionals increased this year by a more moderate 14.8% to US$100,000 from 2004’s US$87,000. "The results of the compensation survey indicate that risk management remains a lucrative field, as salaries increase and professional recognition continues to expand," says Karen Banks, a director at RIMS.