SR 22-8: Framework for the Supervision of Insurance Organizations

The Board of Governors of the Federal Reserve System issued SR 22-8 to establish a supervisory framework tailored to the distinct risk profiles of supervised insurance organizations. The guidance mandates a proportional application of supervisory resources based on a risk-based categorization of institutions as complex or noncomplex. It also defines the ratings system for these entities and outlines procedures for incorporating the oversight work of state insurance regulators.

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SR 22-8: Framework for the Supervision of Insurance Organizations

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM WASHINGTON, D.C. 20551

DIVISION OF SUPERVISION AND REGULATION

SR 22-8

September 28, 2022

On June 23, 2025, the Board announced that reputational risk will no longer be a component of examination programs in its supervision of banks.

TO THE OFFICER IN CHARGE OF SUPERVISION AT EACH FEDERAL RESERVE BANK AND INSTITUTIONS SUPERVISED BY THE FEDERAL RESERVE

SUBJECT:

Framework for the Supervision of Insurance Organizations

Applicability: This guidance applies to all supervised insurance organizations. 1

The Federal Reserve is issuing the attached Framework for the Supervision of Insurance Organizations to describe its supervisory approach for supervised insurance organizations. The framework is designed to reflect the differences between banking and insurance.

In summary, the guidance addresses:

Proportional application of supervisory guidance, resources, and activities : how supervised insurance organizations are categorized as either complex or noncomplex based on risk profile, how the application of supervisory guidance is risk-based, and how supervisory resources are assigned and supervisory activities are conducted.

Supervised insurance organization ratings : the ratings system applied to supervised insurance organizations, including the component ratings and rating definitions.

Incorporating the work of other supervisors : builds upon other guidance focused on the Federal Reserve’s work with other banking regulators and adds transparency describing how the work of state insurance regulators is incorporated.

Reserve Banks are asked to distribute this guidance to supervised insurance organizations in their districts, as well as to appropriate supervisory staff. In addition, questions on the attached guidance may be sent via the Board’s public website. 2

signed by Michael S. Gibson Director Division of Supervision and Regulation

Partially Supersedes:

SR letter 12-17 / CA letter 12-14, “Consolidated Supervision Framework for Large Financial Institutions”

Attachments:

Attachment A: Framework for the Supervision of Insurance Organizations

Attachment B: SIO Complexity Classification Work Program

Cross References:

SR letter 21-3 / CA letter 21-1, “Supervisory Guidance on Board of Directors’ Effectiveness”

SR letter 16-11, “Supervisory Guidance for Assessing Risk Management at Supervised Institutions with Total Consolidated Assets Less than $100 Billion”

SR letter 13-19 / CA letter 13-21, “Guidance on Managing Outsourcing Risk”

SR letter 13-1 / CA letter 13-1, “Supplemental Policy Statement on the Internal Audit Function and Its Outsourcing”

SR letter 11-7, “Guidance on Model Risk Management”

SR letter 10-6, “Interagency Policy Statement on Funding and Liquidity Risk Management”

SR letter 08-8 / CA letter 08-11, “Compliance Risk Management and Oversight at Large Banking Organizations with Complex Compliance Profiles”

SR letter 05-23 / CA letter 05-10, “Interagency Guidance on Response Programs for Unauthorized Access to Customer Information and Customer Notice”

SR letter 03-5, “Amended Interagency Guidance on the Internal Audit Function and its Outsourcing”

Notes:

In this letter, a “supervised insurance organization” is a depository institution holding company that is an insurance underwriting company, or that has over 25 percent of its consolidated assets held by insurance underwriting subsidiaries, or has been otherwise designated as a supervised insurance organization by Federal Reserve staff. Return to text.

See http://www.federalreserve.gov/apps/contactus/feedback.aspx . Return to text.

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Last Update: October 01, 2025