NAIC.IRIS

Question 1

IRIS ratios

Answer 1

Insurance Regulatory Information System
Reported as percentages rounded to the nearest %.
Overall ratios: IRIS 1-4
Profitability ratios: IRIS 5-8
Liquidity ratios: IRIS 9-10
Reserve ratios: IRIS 11-13

Question 2

IRIS 1

Answer 2

GWP/surplus

Usual range <= 900%

Higher the ratio, more risk in relation to surplus

IRIS 1 measures adequacy of the surplus cushion for absorbing losses (ignoring ceded premiums)

Question 3

IRIS 2

Answer 3

NWP/surplus

Usual range <= 300%

Higher the ratio, more risk in relation to surplus

IRIS 2 measures adequacy of cushion (net of ceded premiums)

Question 4

IRIS 3

Answer 4

change(NWP)/prior year NWP

Usual range [-33%,33]

High or low ratio may mean potential lack of stability in operations
(high ratio could also mean less strict U/W or writing a new line)

Question 5

IRIS 4

Answer 5

Surplus aid/surplus

Usual range <15%

Higher ratio means policyholder’s surplus may be inadequate