National Conference of Insurance Guaranty Funds Inc

What it reported doing in 2025

Ncigf provides operational support, communications and public policy development to its members, the state property and casualty insurance guaranty funds. The ncigf also assists property and casualty insurance guaranty funds by providing them with current legislative information and educational training opportunities.see schedule o for 2025 service accomplishments highlights.highlights of our 2025 accomplishments include: ncigf legal ncigf's legal team made significant strides in strengthening contracts, compliance, and risk management throughout 2025, successfully advancing all business plan legal objectives on time and within budget.operationalize pre-liquidation planningin 2025, ncigf and its committee members strengthened the insurance safety net by advancing pre liquidation planning, helping stakeholders prepare earlier and more effectively for potential insurer insolvencies. This work focused on improving operational readiness and coordination by updating procedures, checklists, and response protocols based on lessons learned from past insolvencies. These efforts provide more practical guidance to support timely and informed decision making when insurers experience financial distress. And they paid off. In one insolvency, early coordination accelerated the delivery of claims information to guaranty associations, addressing the needs of policyholders and improving the efficiency of the transition process. In addition, best practices were developed to strengthen collaboration between guaranty funds and regulators, improving information-sharing and alignment during critical stages of insolvency planning. Ncigf's development of a plp readiness framework helped stakeholders navigate pre liquidation activities and better leverage naic early intervention initiatives. The framework supported broader awareness and adoption and expanded industry outreach through presentations to key groups, including departments of insurance, the international association of insurance receivers, the naic, and ncigf members. Together, these efforts enhanced preparedness across the insurance safety net, helping protect policyholders and strengthen the industry's overall response to financial distress.succession planning for state guaranty fund attorneysncigf continues to place a strong emphasis on succession planning. Dedicated sessions at the 2025 ncigf legal seminar brought together industry leaders to share practical strategies for identifying, developing, and transitioning future leadership within guaranty associations. Discussion topics included succession planning for executive leadership, in-house and outside counsel, and claims and litigation teams that handle high-exposure or precedent-setting matters. Panelists emphasized the importance of early planning, clearly defined roles, structured onboarding, and the maintenance of continuity of institutional knowledge. The session also addressed key ethical considerations, including substitution of counsel and conflicts of representation. Tom jenkins shared a presentation highlighting the history of ncigf and key lessons learned from some of the most complex past insolvencies. For members of the guaranty fund community who were not involved in those matters, this historical perspective underscored the importance of preserving institutional knowledge and ensuring the next generation can learn from past experiences.insolvency trendsthree multi-state insurer insolvencies were recorded in 2025, up from 2024, when only one occurred. Ncigf and its members remain committed to proactive planning to support effective responses in future insolvencies. The 2025 insolvencies included a long-term run-off company with workers' compensation and environmental claims and a private passenger auto insurer with policyholders in five states, the second auto insolvency during the year.responding to a changing marketplacetechnology, environmental shifts, and economic forces are reshaping insurance risks, with potential

Financial Efficiency

• Mission deployment rate: Limited
• Program expense ratio: Limited
• Fundraising efficiency: Limited

Transparency & Controls

• Consistency checks: 90.9%; rating input score 91; 7th percentile among comparable filings
• Pay-setting controls: 4 of 6 controls in place; rating input score 67
  • Compensation committee: Pass
  • Independent consultant: Pass
  • Other Form 990s reviewed: Missing
  • Written employment contract: Missing
  • Compensation survey or study: Pass
  • Board or committee approval: Pass
• Foreign activity oversight: Limited
• Grant itemization coverage: Limited
• Major donor itemization: Limited
• Related-party transparency: No; rating input score 0

Accountability

• Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
• Governance controls: 9 of 9 controls in place; rating input score 100
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Pass
  • Other executive compensation review process: Pass
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: 9.7%; rating input score 55; 55th percentile among comparable filings
• Total-asset coverage ratio: 1.47; rating input score 47; 47th percentile among comparable filings
• Liabilities to assets ratio: 0.16; rating input score 39; 39th percentile among comparable filings
• Officer compensation ratio: 31.2%; rating input score 7; 7th percentile among comparable filings

Growth

• Program expense growth: Limited
• Revenue growth: 2.9% per year; rating input score 100; 22nd percentile among comparable filings
• Asset growth: 3.2% per year; rating input score 100; 23rd percentile among comparable filings