Understanding the IRIS Ratios for P&C Insurers

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Course Title: Understanding the IRIS Ratios for P&C Insurers

Description: An introduction to the NAIC IRIS system and its purpose will be provided. For each of the thirteen Property and Casualty IRIS ratios, we will review the ratio calculation, unusual value range and provide its industry result. The strengths and weaknesses of the ratios will be discussed. Key concepts needed to understand the results will be reviewed. We will also discuss how insurance regulators use the IRIS output in monitoring insurers.

Topic: Property and Casualty IRIS Ratios

Level: Intermediate

CPE Credits: 2.0 hours

Prerequisites: An understanding of common property and casualty industry concepts and terminology is needed. This may be gained from attending our Accounting and Financial Reporting or Annual Statement seminars. Many of these concepts and terms are also discussed in our Fundamentals of P&C Insurance webinars and our Overview of Statutory Financial Reporting seminar

NASBA publication/revision date: March 2012

Learning Objectives:

Upon successful completion of Fundamentals of Understanding the IRIS Ratios, the learner should be able to:

• Describe the purpose of IRIS
• Compute and interpret IRIS ratio results
• Identify the pass or fail criteria
• Describe actions an insurer could take to manage its IRIS ratio results

Outline:

• Getting Started
• Learning Objectives
• Purpose of IRIS
• Review of ratios
• Discussion of P&C Industry results
• Interpreting ratios
• Strengths and weaknesses of ratios

Note: All times are US Eastern. What time is it now?.

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