What is the definition of Insurance Regulatory Information System (IRIS)?

The Insurance Regulatory Information System (IRIS) refers to the National Association of Insurance Commissioners' database of Insurance companies.

This database provides financial and insurance ratios that show the standing of each insurance company. These ratios show how stable an insurance company is and how able it is to pay for the claims of their policyholders. If the ratios computed do not meet the range (the standards set by the IRIS and the state insurance commission), it will serve as an early warning device for the regulator to step in to ensure that the insurance company in question does not close down.

The ratios used in life and health insurance companies include the ratios of non-admitted to assets, investments in affiliates to surplus and capital, yield on investments, expenses to premiums, as well as net gain to total income.

For property and casualty insurance companies, the ratios include that of net written premiums to adjusted policyowners' surplus, current year increase or decrease in net written premiums to net written premiums for the previous year, and liabilities to liquid assets.

• Insolvency
• Misstatement of Age or Sex Provision
• Modified Premium Policies
• Moral Hazard
• Comprehensive Coverage