Which two key tools are part of the Insurance Regulatory Information System (IRIS)?

The Insurance Regulatory Information System (IRIS) is designed to help insurance regulators monitor the financial health of insurers. Among its key tools, ratios are critical because they provide meaningful insights into various aspects of an insurer’s financial condition, such as profitability, liquidity, and solvency. These ratios allow regulators to identify potentially problematic companies before issues escalate.

The Analyst Team System supports regulators by facilitating the analysis of the data collected through IRIS. This system allows for a thorough examination of insurers based on the financial ratios and other relevant information, helping to evaluate the risk they pose.

Together, these two elements—ratios for financial assessment and the Analyst Team System for in-depth analysis—function as crucial tools within IRIS to ensure that insurers remain solvent and operate safely in the market. This combination ultimately aids in protecting policyholders and maintaining the stability of the insurance industry.