Insurance Regulatory Information System

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The Insurance Regulatory Information System (IRIS) is a database of Insurance companies in the United States run by the National Association of Insurance Commissioners. IRIS is designed to provide information about insurers' financial solvency.

[edit] Rating Method

IRIS uses the financial statements of the insurer to calculate a series of financial ratios, which are then taken as a measure of the insurer's overall financial condition. If the ratios do not fit into a predetermined range, then IRIS may identify the company for regulation by appropriate authorities.

The system acts as an early-warning protection, which aids state insurance departments to pick out those companies that show financial problems. The ratios are merely guidelines, though: often a financial disaster comes without warning, or defies prediction.[1]

[edit] External Links

[edit] References

  1. ^ "Insurance Regulatory Information System (IRIS)" Ludhardt, C. M. & Wiening, E. A. (2005) Property and Liability Insurance Principles, 4th edition. ISBN 978-0-89463-249-3
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