Insurance Research Council

What it reported doing in 2024

IRC primarily conducts three types of research to suit the needs of the insurance industry and the general public. Public Opinion Surveys: IRC regularly conducts nationwide probability sample surveys, both in-home and telephone, to obtain timely public opinion information on critical issues that affect insurance companies, their policyholders, and the society at large. For example, the Council has conducted Public Attitude Monitor (PAM) surveys, measuring public attitudes and beliefs on a wide range of topics related to risk and insurance. Topics vary but the report surveys public attitudes on issues such as insurance fraud, earthquake insurance, the cost of auto insurance, drinking and driving, speed limits, traffic safety, workers' compensation, attorney advertising, and auto insurance rating systems. Analysis of Insurance Statistical Experience: IRC performs analysis on data compiled by licensed statistical agents (ISO, National Association of Independent Insurers, NISS) to examine the statistical experience of property-casualty insurers and to reveal patterns in insurance claims. For example, the Council undertook a study to examine the latest trends in injury and property damage claims associated with auto accidents. It analyzed claim frequency, severity and average loss cost for each state over time, as well as comparative data on every rating territory in the U.S. It also utilized new means of comparing the costs associated with the various automobile insurance compensation systems in place in the states and demonstrated the connection between cost increases and premium increases. Close Claim Studies: IRC conducts a national closed claim study on auto injuries. It investigates major changes in the number and kinds of injuries being reported in automobile crashes in the U.S., the kinds and amounts of medical treatment obtained by injured persons, the insurance payments received, and the cost of providing auto insurance to vehicle owners.

Financial Efficiency

• Mission deployment rate: 100%; rating input score 100
• Program expense ratio: 100%; rating input score 100
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
• Pay-setting controls: 0 of 6 controls in place; rating input score 0
  • Compensation committee: Missing
  • Independent consultant: Missing
  • Other Form 990s reviewed: Missing
  • Written employment contract: Missing
  • Compensation survey or study: Missing
  • Board or committee approval: Missing
• Foreign activity oversight: Limited
• Grant itemization coverage: Limited
• Major donor itemization: Limited
• Related-party transparency: Limited

Accountability

• Independent voting board: 0%; rating input score 0; 5th percentile among comparable filings
• Governance controls: 7 of 9 controls in place; rating input score 78
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Fail
  • Other executive compensation review process: Fail
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: -103%; rating input score 1; 1st percentile among comparable filings
• Total-asset coverage ratio: 0.01; rating input score 1; 1st percentile among comparable filings
• Liabilities to assets ratio: 85.47; rating input score 0; 0th percentile among comparable filings
• Officer compensation ratio: 32.6%; rating input score 6; 6th percentile among comparable filings

Growth

• Program expense growth: Limited
• Revenue growth: Limited
• Asset growth: Limited