Tillinghast Publishes Cost Allocation Monograph on Distribution of Risk Financing Costs.

NEW YORK--(BUSINESS WIRE)--Oct. 7, 1998--Tillinghast - Towers Perrin has just published a monograph entitled Controlling the Distribution of Risk Financing Costs.

"Every entity is trying to control its insurance costs," said Martin Lewis, a Tillinghast - Towers Perrin consultant who authored the monograph. "This publication discusses how to distribute those costs within an organization or company, and includes an in-depth review of cost allocation principles."

Cost allocation models are typically applied in workers compensation, automobile liability and general liability. An example is when a corporation self-insures its workers compensation exposures and charges a "premium" to various departments, or when a corporation purchases commercial general liability insurance and allocates the premium to different operating divisions. Cost allocation models also are applied when a public or private sector self-insurance group or captive allocates its total funding amount to individual members.

"Spreading the cost is a technical process," said Lewis. "The purpose of the monograph is to illustrate and discuss the key concepts and to highlight a possible approach to suit an organization. Cost allocation advantages include enhancing the ability to manage risk and providing an incentive for loss control."

The monograph is available for purchase from Tillinghast - Towers Perrin for a price of $150. Interested parties should contact:

Tillinghast - Towers Perrin Risk Management Publications One Stamford Plaza, Suite 700 263 Tresser Boulevard Stamford, CT 06901-3255

Phone: [phone] Fax: [phone]

Tillinghast - Towers Perrin is a part of Towers Perrin, a global management consulting firm that helps organizations execute their business strategies through innovative, cost-effective approaches to managing people, performance and risk. Tillinghast - Towers Perrin provides management and actuarial consulting to the insurance and financial services industries as well as risk management consulting to the public and private sectors. The firm has approximately 8,000 employees and 82 offices in 27 countries.