The Federal Reserve Board on Wednesday finalized a supervisory framework for insurance organizations that are overseen by the Board. The final framework is substantially similar to the proposal made earlier this year.
The supervisory framework applies supervisory guidance and resources based on a supervised insurance organization’s risk. It also establishes a supervisory rating system for firms based on their risk profiles and describes how examiners incorporate the work of state insurance regulators.
The supervisory framework will be effective 30 days after publication in the Federal Register.