View source for Definition:Information request list (IRL)

📋 '''Information request list (IRL)''' is a structured document used during [[Definition:Due diligence | due diligence]] in insurance [[Definition:Mergers and acquisitions (M&A) | mergers and acquisitions]] to catalog every piece of data, documentation, and disclosure that the acquiring party needs from the target company. In insurance transactions — whether the target is a [[Definition:Insurance carrier | carrier]], a [[Definition:Managing general agent (MGA) | managing general agent]], or an [[Definition:Insurtech | insurtech]] platform — the IRL is tailored to capture industry-specific items such as [[Definition:Loss reserve | loss reserve]] analyses, [[Definition:Reinsurance | reinsurance]] treaty schedules, [[Definition:Regulatory compliance | regulatory compliance]] filings, [[Definition:Claims management | claims]] development triangles, [[Definition:Actuarial report | actuarial reports]], and details on [[Definition:Delegated underwriting authority (DUA) | delegated authority]] arrangements. The IRL serves as the backbone of the due diligence process, ensuring that the buyer systematically gathers the information necessary to assess risk, value the business, and identify potential liabilities.

🔍 Typically prepared by the buyer's advisory team — which may include accountants, lawyers, actuaries, and insurance consultants — the IRL is issued to the seller early in the transaction process. The seller then populates a [[Definition:Virtual data room (VDR) | virtual data room]] with responsive documents organized to mirror the IRL's structure. In insurance deals, the list often runs to hundreds of line items because of the sector's regulatory complexity and the need to examine items unique to the industry: [[Definition:Solvency | solvency]] capital calculations under frameworks such as [[Definition:Solvency II | Solvency II]] or [[Definition:Risk-based capital (RBC) | risk-based capital]] standards, [[Definition:Policy | policy]] form inventories, [[Definition:Underwriting | underwriting]] guidelines, producer agreements, and historical [[Definition:Loss ratio | loss ratio]] data by line of business. Follow-up IRLs or supplemental requests are common as the buyer's team identifies gaps or new areas of inquiry during the review.

💡 A well-crafted IRL can make or break the efficiency of an insurance transaction. When the list is comprehensive and organized from the outset, it reduces the risk of last-minute surprises — such as undisclosed [[Definition:Litigation | litigation]], unreported [[Definition:Regulatory action | regulatory actions]], or hidden reserve deficiencies — that could delay closing or crater a deal entirely. Conversely, a vague or generic IRL that fails to probe insurance-specific exposures can leave the buyer exposed to material risks that only surface after the transaction completes. For sellers, responding promptly and thoroughly to the IRL also signals operational maturity, which can support [[Definition:Valuation | valuation]] expectations and build buyer confidence throughout the negotiation process.

'''Related concepts:'''
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* [[Definition:Due diligence]]
* [[Definition:Virtual data room (VDR)]]
* [[Definition:Mergers and acquisitions (M&A)]]
* [[Definition:Actuarial report]]
* [[Definition:Insurance portfolio summary]]
* [[Definition:Representations and warranties]]
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