Guidance proposed to put framework into action for supervising bank-owned insurance organizations

Guidance for implementing a framework to supervise insurance organizations owned by banks and overseen by the Federal Reserve was proposed Friday by the agency. Comments will be accepted for 60 days.

According to the Fed, the proposed supervisory framework for bank holding companies significantly engaged in insurance activities would apply guidance and allocate supervisory resources based on the risk of a particular firm.

The proposal would also, the Fed said, formalize a supervisory rating system for the bank holding companies and describe how examiners work with state insurance regulators.

The guidance, if made final, would apply to any depository institution holding company that is an insurance underwriting company or that has more than 25% of its consolidated assets held by insurance underwriting subsidiaries, the agency said.

Federal Reserve Board invites public comment on proposed guidance to implement a framework for the supervision of certain insurance organizations overseen by the Board