Annual Report
2022
Advancing. Evolving. Delivering.
President's Letter
In 2022, NICB celebrated our 110-year anniversary as an organization. While our legacy is more than a century old, we have been evolving at a rapid pace in recent years.
In 2020 and 2021, we focused on laying the foundation for our evolution by creating new functions and capabilities, bringing on new, strategic leaders with law enforcement and insurance industry backgrounds, and establishing our strategic plan and organizational priorities. In 2022, we began building on this solid foundation to shape the future of our association.
One of my top priorities as CEO has been to advance NICB’s use of data analytics and our intelligence capabilities to identify unknown criminal networks and fraudulent activity. We have focused on building out our data analytics capabilities and developing rapid and reliable intelligence products to better inform members on the latest trends and emerging threats in the industry. I am pleased to say that these efforts have paid off, and we are now delivering on this capability. In 2022, NICB developed intelligence products focused on insurance fraud and crime, and we identified organized crime rings and recovered more than a quarter of a million vehicles. While auto recovery has long been a strength for NICB, we are also advancing our analytical and investigative efforts into medical and workers’ compensation claims.
As an industry thought leader and representative for our member companies, NICB is championing legislation, regulations, and policies that enhance the environment for fighting insurance crime and fraud at all levels of government. We do this by establishing and maintaining relationships with key stakeholders in federal, state, and local governments, regulatory bodies, and insurance commissions. In 2022, NICB supported new state laws that expanded the tools available to law enforcement and regulators to combat insurance-related crime, and we were cited in nearly 100 bills across the United States, demonstrating our recognition as experts in the field.
Additionally, NICB is informing the public and other stakeholders through our Learning and Development capabilities and our high-profile media campaigns. NICB’s curriculum and advanced intelligence training academies are designed for law enforcement officers, investigators, and intelligence analysts to learn about trends and tools to fight insurance crime. Coupled with our efforts to educate the public on important crime trends through national and local media interviews, NICB is seen as the go-to resource for information on insurance crime.
In 2023, our association is well-positioned to continue our evolution to meet the needs of our more than 1,200 members. Along with our members, NICB will continue to work with law enforcement agencies, technology experts, government officials, prosecutors, international crime-fighting organizations, and the public to accomplish our mission of leading a united effort to combat and prevent insurance crime through intelligence-driven operations.
David J. Glawe
President and Chief Executive Officer
Intelligence, Analytics, & Operations
Actionable Innovation
In 2022, Operations, Intelligence, and Analytics (OIA) elevated and expanded its value in the spaces it has occupied for more than 110 years, while simultaneously steering its focus toward innovation. Key components of this effort began with streamlining the organizational structure, further integrating operations and intelligence, and building out a formalized Data Science Program. The transition from the distinct organizational entities of Field Operations and the Office of Intelligence and Analytics to one unified department under OIA had more than just an administrative impact—OIA improved efficiency and effectiveness and allowed NICB to move into a more proactive space of modernization.
As part of the effort to elevate the services and products offered to stakeholders, NICB expanded its access to data sets and obtained tools to drive its programs more efficiently. OIA, in collaboration with NICB IT and Verisk, built out the NICB Cloud data warehouse, which aggregated and improved the speed at which users can access claims data. Through the creation of the NICB Cloud, the organization also gained access to all claims data mid-year and began developing and leveraging cloud-based
tools for entity resolution and organized group modeling, both of which are key to proactively combatting fraud in today’s environment.
Another exciting addition was the incorporation of Équité records to NICB’s International File. Adding Équité records for collision, theft, recoveries, salvage, fire, flood, and export expanded data resources, improved accuracy, and created opportunities for cross-border collaboration on investigative leads and vehicle recoveries. Furthermore, in the data set space, OIA obtained additional 2022 FBI NCIC data and has begun exploring potential theft and fraud trends.
OIA also engaged industry experts to refine existing and create new intelligence products to assist stakeholders in becoming more predictive with their investigations. The team employed machine learning to predict when medical providers may have engaged in fraudulent activity and identified dozens of suspicious providers. These efforts led to the publication of nearly 70 proactive alerts and the initiation of 14 new investigations.
Leveraging NICB’s relationships with law enforcement and access to unique law enforcement data sets remained a key focus in 2022 for OIA alongside our operations and casework. In the catastrophe response space, OIA assisted in the aftermath of Hurricane Ian.
NICB employees hosted multiple meetings at insurance villages in Florida with member company SIU and claim partners, as well as state and local law enforcement partners, to coordinate intelligence sharing, response support, and conduct outreach to communities most affected by the storm. This outreach was choreographed in close cooperation with NICB Communications, Partner Engagement and Member Services, Learning and Development, and Strategy, Policy, and Government Affairs. OIA also prepared Catastrophe Fraud Alerts identifying 24 medical providers who were recent subjects of interest (SOIs) of NICB questionable claims in the most impacted areas of Florida. In more traditional spaces, OIA hosted the 11th annual Texas Cargo Theft Conference to discuss issues, techniques, and challenges associated with commercial investigations, resulting in recovery of over 10 fictitious pickups of stolen cargo loads in California.
Additionally, OIA achieved multiple successes across the country in the workers’ compensation fraud space with one Southeast Region case resulting in the court ordering a $30M restitution to the victim’s insurance company. NICB has continued to refi ne the proactive approach used in workers’ compensation premium fraud investigations by identifying criminal activity earlier resulting in mitigated losses for the involved carrier. And as always, continuing work in the vehicle space remains at the heart of NICB’s mission. OIA ended 2022 with 267,978 vehicle recoveries and 1,942 vehicle repatriations and provided vehicle crime training to law enforcement and member companies. As the trend of catalytic converter theft grew over 2022, so did the need for NICB to engage in prevention efforts to reduce this crime. NICB partnered with various law enforcement agencies, local governments, community colleges/technical schools, and even private industry to host VIN etching events across the country. OIA’s efforts in 2022 demonstrate a continued commitment toward cutting-edge, proactive, and data-driven operations, ensuring NICB remains relevant in the fight against insurance fraud now and into the future.
Accomplishments
Education & Crime Prevention
Informing the Public
NICB’s internationally recognized expertise in investigating insurance-related crimes rightfully positions us to be the leader in training the industry in insurance crime prevention, detection, and prosecution. Rooted in our well-established subject-matter expertise, NICB enjoys the credibility and communications tools to effectively educate the public about various insurance crime-related risks.
Learning & Development
Throughout 2022, the NICB Learning and Development (L&D) Department, along with the National Insurance Crime Training Academy (NICTA), focused on achieving measurable progress specifically toward initiatives aimed at enhancing education and training opportunities for members, law enforcement partners, and key stakeholders. These efforts were anchored in fostering a learning culture that encourages continuous education and growth, implemented by various training platforms—including on-demand eLearning courses, virtual instructor-led training, in-person training, and specialized academies.
Critical to any learning and development program is the continual evaluation of programs and courses to ensure training is relevant, engaging, and effective. For L&D and NICTA, this is accomplished
by gathering feedback through focus groups, surveys, and interviews. In 2022, L&D proudly received a course program rating of 4.5 (out of 5).
Future opportunities include a continual review and revision of NICTA courses to ensure appropriate content and curriculum standards, avenues to provide intermediate and advanced courses, and an increased use of technology-based learning to provide more flexible and accessible training options. To accomplish this, NICB has partnered with learning and development subject-matter experts to provide unique insights and perspectives to ensure offerings are advantageous as well as consistent with industry standards.
In 2022, Learning and Development successfully delivered improved, relevant, and impactful training opportunities for members, law enforcement, and NICB stakeholders. Our goal into 2023 and beyond is to cultivate a culture of continuous learning by equipping our members with the necessary tools for optimal learning. To achieve this, our team will continue to strive to provide offerings that meet the needs of our members as they work to combat the most pervasive and current fraud threats and trends.
Over the past year, L&D has reached significant milestones, resulting in program growth and delivery of impactful training. Notable achievements included:
- Virtual FraudSmart® Training: On a bi-weekly basis, L&D hosted virtual, instructor-led FraudSmart sessions, which varied to anticipate the needs of members and partners and covered the most significant crime and fraud-related topics impacting the insurance industry. Areas of instruction in 2022 included medical fraud, identity theft, elder crime, property crime, and vehicle-related crime to include catalytic converter theft and vehicle financing fraud. Overall attendance for FraudSmart training in 2022 exceeded 3,500 active participants.
- Specialized Academies: Throughout the year, L&D hosted several unique academies centered around specific topics or learning paths. These included the Fraud Investigations Academy, Analyst Academy, Medical Investigations Academy, and Workers’ Compensation Fraud Conference. Each event was skillfully designed by subject-matter experts and industry representatives exclusively for insurance personnel and law enforcement. In 2022, over 700 individuals attended these specialized academies.
- On-demand eLearning: L&D continued to maintain and improve upon eLearning offerings via the NICTA training platform. NICTA’s self-paced training continued to allow learners
the fl exibility to choose their learning path and navigate at their own pace. NICTA boasts a catalog of 60 courses encompassing a diverse array of topics—from basic insurance fraud investigations to complex criminal schemes. As a value-add to many users, we continued to provide multiple NICTA courses that meet certifi cation standards to satisfy continuing education credits and allow subscribers the ability to integrate courses into their individual learning management platforms. An effort was also directed toward modernizing and improving all eLearning course offerings, which is a project that will continue into 2023. As a whole, the NICTA platform maintained 100,000 registered users with 75,000 courses taken in 2022. - In-person Training: Extensive in-person training was provided by NICB subject-matter experts throughout the seven NICB regions. Managed by regional facilitators, in-person training assisted special investigators and law enforcement with fraud and threat-specific instruction and continued to foster strong collaboration and partnerships.
Over 37,000 partners received NICB in-person training in 2022.
Accomplishments
Public Affairs & Communications
Utilizing our subject-matter expertise and unique data sets, NICB continues to serve as the insurance industry’s voice on insurance fraud and crime. The Public Affairs and Communications Department does this by leveraging integrated media campaigns, partnerships, and other strategic tactics to educate, inform, and engage the public, member companies, lawmakers, trade associations, and the media on topics relevant to the insurance industry.
Informing and Educating Consumers Through Integrated Campaigns
In 2022, NICB identified new ways to utilize data, intelligence, and partnerships to create impactful media campaigns that drove the national narrative on vehicle thefts, contractor fraud, and other crime- and fraud-related topics. Campaigns included national and major market media interviews, targeted social media efforts, public service announcements (PSAs), infographics, and other digital assets.
Because of NICB’s expertise and credibility with national media outlets, NICB participated in over 50 national and major market media interviews in 2022 and responded to nearly 200 media inquiries. This resulted in more than 14,000 news stories about NICB and more than 2.4 billion views of those stories, both of which far exceeds the number of stories and views of stories about NICB in 2021.
One of the main storylines last year focused on dramatic increases in vehicle thefts, carjackings, and catalytic converter thefts that occurred nationwide. Because cities—large and small—were impacted by increasing levels of crime, the news media relied on NICB as the sole source of data on vehicle crime at the state and national levels and as the subject-matter expert to explain why the thefts were occurring, who was committing them, and what can be done to stop it.
NICB conducted interviews with top-tier media outlets, including NBC News and the TODAY Show, CNN, The New York Times, PBS NewsHour, and many others, and contributed data and insights to stories that appeared on FOX News, ABC News, NPR, as well as in the Washington Post and Wall Street Journal. Additionally, NICB collaborated with reporters and producers at more than 100 local media outlets, including interviews with outlets in Los Angeles, Chicago, and Washington, D.C.
In addition to vehicle-related crimes, NICB collaborated with the media to warn homeowners about the risks associated with contractor fraud following large catastrophic events. This was especially important following Hurricane Ian’s landfall in September. NICB engaged partners on the ground to develop a comprehensive public affairs strategy targeting Florida and Georgia homeowners to inform and educate them on the signs of contractor fraud and how to avoid becoming a victim. NICB conducted interviews with CBS News, FOX News, and FOX Business, as well as with local media outlets, and created a social media strategy to target homeowners along the coast with important information and tips. Additionally, NICB made social media content and PSAs available in both English and Spanish.
In the weeks and months following Hurricane Ian, NICB followed a similar approach to inform and educate consumers across the U.S. as salvaged vehicles flooded the used car market.
In 2023, NICB continues to serve as the subject-matter expert and industry voice on insurance fraud and crime as hundreds of media outlets have already created stories relying on NICB’s expertise, including CBS News, FOX News, and CNBC, among others. [See how NICB appears in the media at www.nicb.org/News.]
Leveraging Partnerships to Help Pass Legislation and Protect Consumers
Besides expanding national media relationships, NICB focused consider-able time and energy in 2022 building relationships and coalitions with state and federal agencies, lawmakers, law enforcement agencies, trade associations, and other non-profit organizations to drive legislative action to help stem insurance fraud and crime and to publicize key messages relevant to NICB’s members and law enforcement partners.
Public Affairs engaged in over 30 joint partner initiatives throughout the year, including multiple efforts tied to the Florida insurance market. This included working with Florida Chief Financial Officer (CFO) Jimmy Patronis, Consumer Protection Coalition (CPC), and AARP immediately following Hurricane Ian.
Separately, the team collaborated closely with the CFO’s office during Florida’s special session in December to support efforts to address the state’s deteriorating property insurance market. NICB and the CFO’s office issued joint press releases and statements to support Senate Bill 2A, a bill signed into law to eliminate assignment of benefits (AOBs) and one-way attorney fees for lawsuits filed on a property claim. NICB continues to work with the CFO’s office and CPC on efforts related to the state’s auto glass market through our support of the Fix the Cracks initiative.
NICB also partnered with the U.S. Department of State, San Diego District’s Attorney’s Office, California Highway Patrol, and others on fraud-related messaging in California, developed joint messages with the Rocky Mountain Insurance Association following wildfires in Colorado, supported catalytic converter legislation at the state and federal levels, and collaborated with the American Property Casualty Insurance Association, Insurance Information Institute, and other trade associations on various initiatives throughout the year.
Additionally, NICB leveraged existing partnerships and identified new ones to increase expertise and informative stories shared in The NICB Informer, a quarterly publication with original, intelligence-based content and circulated to leaders of member insurance carriers and other partners. Guest contributors, including U.S. Postal Inspector Gary Barksdale and Rocky Mountain Insurance Association Executive Director Carole Walker, authored fraud-related articles for the publication. Digital articles within The Informer received over 2,600 views in 2022. [Read the latest edition of The NICB Informer at www.nicb.org/NICBInformer].
Recognizing Contractor Fraud Awareness Week Through Proclamations
What started out as a social media campaign has evolved into a fully integrated public affairs campaign that has been recognized by leaders in multiple states. Contractor Fraud Awareness Week (CFAW) started in 2021 to shine a spotlight on fraudulent contractors who take advantage of homeowners following major catastrophes. In 2022, CFAW expanded to include a national media tour with nearly 20 media outlets, Facebook Live event with the national chapter of AARP, a targeted social media campaign, PSAs in English and Spanish, and infographics. NICB also created templated marketing materials for member companies, law enforcement agencies, and other partners to use with their respective audiences.
State leaders in Florida, Georgia, and Maryland took notice of NICB’s efforts and issued proclamations recognizing CFAW as an official week in their respective states. The proclamations acknowledged the importance of educating consumers on contractor fraud and helped position NICB as the leader in the fight against contractor fraud.
Multiple states have already expressed interest in issuing proclamations to recognize CFAW in 2023, which occurs May 22–26. [Visit www.nicb.org/ContractorFraudWeek for more details.]
Strategy, Policy, & Advocacy
Leading Legislation
NICB continued to be the undisputed voice on insurance crime and fraud issues for policymakers, members, law enforcement partners, and other stakeholders. NICB’s well-recognized policy expertise and leadership was on full display in March 2022 when NICB President and CEO David Glawe testifi ed before the Judiciary Committee in the United States Senate on the continued rise of auto thefts and carjackings nationwide (see photo on pgs. 6-7). Glawe presented specifi c policy recommendations to respond to these challenges. President Biden adopted several of NICB’s policy recommendations in his May 25, 2022 Executive Order.
At the state level, NICB’s Strategy, Policy, and Government Affairs (SPGA) group tracked 99 separate bills addressing the auto theft and carjacking problem across 16 different states and in the District of Columbia. NICB played an integral role in advancing bills in a number of jurisdictions. A few of the highlights included:
- Directly influencing a nearly $3.7 million increase in funding to the Washington State Auto Theft Prevention Authority
- Advancing a carjacking bill in the Louisiana legislature where the bill sponsor recognized NICB in floor remarks during debate on the bill
- Drafting a carjacking bill from scratch and working with legislators in Tennessee to introduce the bill
- Supporting amendments in Illinois that enhanced penalties for fleeing police in stolen vehicles
- Supporting increased penalties for serial offenders in California
- Supporting a slate of bills addressing vehicle theft at a consolidated Senate hearing in New Jersey
As catalytic converter thefts continued to skyrocket, SPGA provided NICB’s expertise to lawmakers across the country. NICB worked with Congressman Jim Baird’s (IN-04) offi ce on the “Prevent-ing Auto Recycling Theft Act,” providing technical assistance on bill drafting and policy recommendations. The bill was reintroduced in February 2023 along with a Senate companion bill sponsored by Sens. Klobuchar, Braun, Wyden, and Vance. SPGA also tracked 164 bills in 37 states, providing written testimony sup-porting many of those measures. Among the many highlights include:
- Providing a Louisiana senator data to support his bill criminalizing catalytic converter thefts that was signed into law
- Working directly with a Kentucky senator to help shape and support a bill signed into law
- Coordinating with NICB members and trade associations on a legislative proposal in Connecticut
- Creating a webpage for easy reference for stakeholders to research updated legislation around the United States
SPGA also protected NICB’s status as a safe harbor for sensitive data by working with policymakers in Virginia and Connecticut to carefully carve out exemptions from consumer data priva-cy provisions based on our non-profi t status and organizational mission. SPGA addressed consumer data privacy bills in 29 different states and at the federal level, as well as other bills addressing access to data issues.
To promote NICB’s Contractor Fraud Awareness Week, SPGA worked with state agencies in Florida, Georgia, and Maryland to secure proclamations recog-nizing the event and alerting their citizens of the impact of contractor fraud.
The newly titled National Conference of Insurance Crime Attorneys welcomed a record number of attendees this year, propelled in part by internal and external advisory committees to assist in agenda development, marketing, outreach, and communications.
On the policy side, SPGA established several new policies and enhanced existing ones to remain a responsible steward of sensitive data in our pos-session. SPGA crafted a cybersecurity incident response policy to shore up NICB’s cyber defenses and established a Data Committee to identify and create enterprise-wide data-related policies.
Accomplishments
Partner Engagement & Member Services
Providing Superior Service
The Partner Engagement & Member Services team plays an integral role in NICB’s relationships at every level. The team’s support is rooted in a commitment to providing superior customer service and communicating NICB’s tangible and intangible benefits from the moment a prospective member is identified, through their full onboarding process, and beyond. Through regular outreach and engagement, the Partner Engagement and Member Services Department supports NICB’s goal of uniting the insurance industry in the fight against insurance crime.
Coming off the heels of a strong performance in 2021, the Partner Engagement and Member Services team continued to grow membership in 2022. Over the course of the year, 12 new Active and Associate members joined the organization. In addition, our member retention rate was exceptional, receiving only one voluntary termination notice in 2022. This is not only a testament to the hard work of the team, but symbolic of the commitment to excellence throughout the entire organization.
Current Active and Associate membership totals 254 groups, consisting of 1,237 property-casualty insurance companies and other organizations that support NICB’s mission. NICB members represent 96% of the nation’s personal auto insurance premiums and 82% of all property-casualty insurance premiums. Our department is committed to fostering and expanding membership and partnerships through innovation in new lines of business without losing sight of NICB’s core mission. We are also committed to excellence in customer service, and one of the ways in which we ensure this is by staying engaged and actively seeking out and encouraging feedback.
During 2022, the Member Benefit Report (MBR) Committee, comprised of member company representatives, finalized their evaluation of the current MBR metrics, format, delivery, and frequency. The committee’s recommendations were presented to the Board of Governors in November, and the consensus of the Board was that the MBR no longer adequately tells NICB’s story. Instead, by using only measurables to calculate a return on investment (ROI), the MBR encourages members to focus primarily on those benefits that have a tangible value, when NICB membership amounts to much more than what can be measured in dollars and cents.
In lieu of an MBR, NICB was directed to create an annual Member Activity Report that highlights a broader number of key activities that occurred between NICB and its members. The goal is to better reflect each individual member’s engagement and empower members to use membership benefits more effectively throughout their organizations.
As we continued to seek mission-aligned growth opportunities, two new sub-classes of Associate membership were approved in 2022 by the Board. Managing General Agents (MGAs) that meet certain conditions and qualifications can now become Associate members. Additionally, a second sub-class for self-insureds was approved, which creates a more targeted set of benefits for those self-insured companies primarily interested in having access to certain NICB information via ISO ClaimSearch®.
The success of Partner Engagement and Member Services in 2022 has laid a great foundation for continued improvement and innovation in 2023. NICB’s biggest asset is the relationship we have
with our members and partners, and we are here to ensure this connection stays strong.
Financials
2022 Statements
As a leader in the industry, NICB honors its more than 1,200 members, which include property-casualty insurance companies and self-insured organizations, by maximizing its resources while building on its strengths.
The challenges that lay ahead for the industry demand responsible stewardship of resources and tools, as well as drive, creativity, and diverse talent and viewpoints. As NICB harnesses the power of data and advanced analytics, it remains committed to its dedication to fighting insurance fraud and crime.
Statements of Financial Position
| Assets | 2022 | 2021 |
|---|---|---|
| Current Assets | $17,704,605 | $19,411,846 |
| Investments | 50,572,686 | 57,856,750 |
| Property and Equipment, net | 500,346 | 592,473 |
| Right-of-Use Assets, net | 3,894,544 | - |
| Other Assets | 101,569 | 103,565 |
| Total Assets | $72,773,750 | $77,964,634 |
| Liabilities and Net Assets | 2022 | 2021 |
|---|---|---|
| Current Liabilities | $10,001,394 | $9,800,695 |
| Operating Lease Obligation, Net of Current Portion | 2,169,970 | - |
| Other Long-Term Liabilities | 72,061 | 198,214 |
| Accrued Post-Retirement Benefits, Net of Current Portion | 12,285,000 | 17,615,000 |
| Total Liabilities | 24,528,425 | 27,613,909 |
| Net Assets Without Donor Restrictions | 48,233,951 | 50,340,188 |
| New Assets With Donor Restrictions | 11,374 | 10,537 |
| Total Liabilities and Net Assets | $72,773,750 | $77,964,634 |
Statements of Activities
| Revenue | 2022 | 2021 |
|---|---|---|
| Assessments and Member Services | $58,039,185 | $56,219,541 |
| Geospatial Member Assessment | 10,920,666 | 10,042,829 |
| Data Related and Strategic Partnership | 1,349,076 | 1,017,330 |
| Miscellaneous Income | 417,259 | 5,664 |
| Net Assets Released From Restriction | 10,478 | 15,061 |
| Loss on Disposal of Property and Equipment | - | (2,143) |
| Investment Return, Net | (7,286,067) | 5,824,892 |
| Total Revenue | $63,450,597 | $73,123,174 |
| Expenses | 2022 | 2021 |
|---|---|---|
| Salaries | $34,427,633 | $32,806,323 |
| Geospatial Imagery | 10,920,666 | 9,428,335 |
| Retirement and Employee Benefits | 7,975,589 | 6,909,458 |
| Dues and Fees | 3,043,931 | 2,361,633 |
| Technical Fees and Services | 2,767,683 | 2,037,147 |
| Payroll Taxes | 2,500,582 | 2,406,990 |
| Automobile Operations | 1,832,577 | 1,632,284 |
| Office Expense | 1,314,209 | 1,377,793 |
| Computer and Peripheral Units | 1,050,779 | 968,387 |
| Other | 5,091,185 | 4,634,730 |
| Total Expenses | $70,924,834 | $64,563,080 |
| Change in net assets without donor restrictions before post-retirement-related changes other than net periodic post-retirement costs |
(7,474,237) | 8,560,094 |
| Post-retirement related changes other than net periodic post-retirement costs |
5,368,000 | 3,534,000 |
| Total Change in Net Assets Without Donor Restrictions | (2,106,237) | 12,094,094 |
| Contributions | 11,315 | 5,839 |
| Net Assets Released From Restriction | (10,478) | (15,061) |
| Total Change in Net Assets with Donor Restrictions | 837 | (9,222) |
| Change in Net Assets | (2,105,400) | 12,084,872 |
| Net Assets, Beginning of Year | 50,350,725 | 38,265,853 |
| Net Assets, End of Year | 48,245,325 | $50,350,725 |
These financial statements have been prepared by management in conformity with generally accepted accounting principles and include all adjustments which, in the opinion of management, are necessary to reflect a fair presentation. This presentation represents a summarization from audited financial statements. Certain reclassifications of prior year amounts have been made to conform to current year presentation.
Functional Program Expenses
Years ended December 31.
| Program | 2022 | 2021 |
|---|---|---|
| Intelligence and Analytics | $10,382,498 | $8,135,481 |
| Investigations | 36,861,229 | 34,490,310 |
| Learning & Development | 3,720,046 | 3,509,726 |
| Strategy, Policy and Government Affairs | 2,504,354 | 2,077,496 |
| Communications | 1,832,993 | 1,625,474 |
| Geospatial Intelligence | 11,078,398 | 10,172,972 |
| Total Program Services | 66,379,518 | 60,011,459 |
| Administrative and General | 4,545,316 | 4,551,621 |
| Total Functional Expenses | $70,924,834 | $64,563,080 |
Notes to Financial Statements
ASSESSMENT REVENUES
The activities of the National Insurance Crime Bureau (“NICB”), conducted principally in the United States, are financed through assessments of its member insurance carriers. Such assessments are determined according to a formula based upon gross premiums for certain lines of business written by member companies and annual verification received from them. During the years ended December 31, 2022 and 2021, nine member organizations made up approximately 55% of NICB’s assessment and member service revenues.
NET ASSETS WITHOUT DONOR RESTRICTIONS
Net assets without donor restrictions are not subject to donor-imposed stipulations or time restrictions.
NET ASSETS WITH DONOR RESTRICTIONS
Net assets with donor restrictions represent contributions subject to donor-imposed restrictions. These contributions are designated for special operations in support of law enforcement and fraud fighting activities.
GEOSPATIAL INTELLIGENCE
Geospatial Intelligence was developed to provide the insurance industry and others with comprehensive geospatial imagery “Gray Sky” and analytics related to natural or manmade catastrophic events that members may use to deal with insurance claims and prevent fraud. The program platform delivers catastrophe monitoring and response, comprehensive “Blue Sky” aerial imagery coverage of the United States, and advanced analytics to include pre- and post-damage assessment to its members; leading to more claims decisions, reduction of fraud, and faster catastrophe response. The scope of the program is dependent on special assessments from its members. NICB expended $11,078,398 and $10,172,972 to support the existing program, which includes $157,732 and $130,143 of indirect costs for the years ended December 31, 2022 and 2021, respectively.
LEASES
NICB adopted ASC 842 effective January 1, 2022. NICB has operating lease agreements for offi ce space and vehicles with lease terms ranging from 1 to 10 years. As permitted within the guidance of ASC 842, NICB has elected to use a risk-free rate for all leases, using a period comparable with that of the lease term.
NICB POST-RETIREMENT PLAN
NICB provides certain healthcare and life insurance benefits for retired employees. Employees hired prior to April 1, 2004 are eligible to receive this benefit. The NICB Post-retirement Plan is unfunded. As of December 31, 2022, recognition of the net unfunded status of the NICB Post-retirement Plan resulted in current liabilities of $713,000 and non-current liabilities of $12,285,000 for a total benefit obligation of $12,998,000.
LITIGATION
NICB has been named as a defendant in certain lawsuits wherein the plaintiffs seek to recover damages based upon various allegations arising from certain of these organizations’ investigations. After considering the merits of these actions and the opinions of outside counsel, together with the organizations’ liability insurance coverage, management of NICB believes that the ultimate liability for these matters, if any, will not have a material adverse effect on the NICB financial statements.
TAX STATUS
NICB has received a favorable determination letter from the Internal Revenue Service dated September 9, 1991, and reaffirmed in 2001, stating that it qualifies as a not-for-profit corporation as described in Section 501(c)(4) of the Internal Revenue Code (IRC) and, as such, is exempt from federal income taxes on related income pursuant to Section 501(a) of the IRC. NICB continues to qualify as a not-for-profit corporation under Section 501(c)(4).
Leadership
Board of Governors, Advisors, & Senior Leadership
Board of Governors
Advisors to the Board
NICB Senior Leadership
