Mission Statement

The Insurance Reserve Fund’s mission is to provide Property and Liability insurance products that meet the needs of its governmental customers in a secure and financially responsible manner at the least possible cost.

About Us

The Insurance Reserve Fund, often referred to as the IRF, is a Division of the South Carolina State Fiscal Accountability Authority.  The IRF reports to the five-member Authority through the Office of the Executive Director. 

The State Fiscal Accountability Authority is authorized and required to provide insurance to governmental entities by many statutes which include the following:

§ 1-11-140	Authorizes Fiscal Accountability Authority, through the Insurance Reserve Fund, to provide liability insurance to governmental entities, employees, and governmental hospitals
§ 10-7-10 - §10-7-40	Authorizes Fiscal Accountability Authority to insure public buildings and contents
§ 10-7-120	Authorizes the purchase of reinsurance
§ 10-7-130	Authorizes the Authority to hold premiums to pay insured losses and expenses
§ 15-78-10 - § 15-78-150	SC Tort Claims Act. Authorizes the purchase of liability insurance
§ 59-67-710 - § 59-67-790	Authorizes the Fiscal Accountability Authority to insure school buses and pupils transported on buses
§ 59-67-790	Pupil Injury Insurance Fund
§ 1-11-147	Automobile Liability Reinsurance
§ 11-9-75	Debt Collection Procedures
§ 38-13-190	Requires SC Department of Insurance audit Insurance Reserve Fund

The Insurance Reserve Fund operates like an insurance company, by issuing policies, collecting premiums (based in consultation with actuaries), and by paying claims from the accumulated premiums in accordance with the terms and conditions of the insurance policies it has issued. The Insurance Reserve Fund uses Willis Towers Watson, as its consulting actuaries in determining rates, IBNR reserves, adequacy of loss reserves, and adequacy of policyholders’ equity in making management recommendations to the State Fiscal Accountability Authority regarding the financial management of the Fund. The Insurance Reserve Fund does not receive any appropriations from the General Fund.

The Insurance Reserve Fund prepares a National Association of Insurance Commissioners (NAIC) Annual Statement with the South Carolina Department of Insurance, as required by law, reflecting the annual financial status of its insurance operation. Also, the Insurance Reserve Fund is audited by the South Carolina Department of Insurance every three years, or more often as needed, pursuant to Section 38-13-190 of the South Carolina Code of Laws.  The Insurance Reserve Fund also is audited annually by an independent CPA firm.

All premiums received by the Insurance Reserve Fund are deposited with the Office of the State Treasurer where the funds are maintained as the Insurance Reserve Fund Trust Account. By statutory requirement, these funds are to be used to pay claims and operating expenses of the Insurance Reserve Fund. The Office of the State Treasurer is responsible for investing these funds. 

The Insurance Reserve Fund uses no agents, brokers, or advertising, and does not actively solicit accounts. The lack of a profit motive and the lack of acquisition expenses such as agents’ commissions, along with the use of the investment income in rate determination allows the Insurance Reserve Fund to maintain the lowest possible rate structure. Not all governmental entities elect to purchase their insurance through the Insurance Reserve Fund. The South Carolina Tort Claims Act allows political subdivisions of the State access to other mechanisms to meet their insurance needs at their discretion. Some entities participate in other self-insurance pools, some purchase commercial insurance, and some elect to self-insure their insurance exposures.

The Insurance Reserve Fund offers the following lines of insurance:

Liability Insurance	Automobile Liability School Bus Liability General Tort Liability Medical Professional Liability
Property Insurance	“All Risk” Coverage on Buildings and Contents Builders’ Risk Data Processing Equipment and Media Inland Marine Business Interruption and Extra Expense

The Insurance Reserve Fund currently insures over $48.5 billion in property values, state and local governmental entities which employ over 164,000 employees, over 38,000 vehicles, 5,900 state school buses and 9 hospital systems with over 2,680 governmentally employed physicians, dentists and residents.

Because South Carolina has significant hurricane and earthquake exposures, all Insurance Reserve Fund property insurance policies include coverage for wind, flood, and earthquake. All Insurance Reserve Fund liability policies are designed to meet the needs of governmental entities and to comply with applicable statutes.

The South Carolina Insurance Reserve Fund also provides risk management services such as driver improvement training, real property appraisals, boiler and machinery inspections, and property engineering inspections for its various insureds.