Supervisory Insights From FDIC for Banks

The FDIC issued a special edition of "Supervisory Insights" recently providing guidance on community banks guidance on governance. Preventing D&O claims means your board and leadership are attuned to regulation and regulator's stance on running your bank. This is required reading for anyone looking to meet their fiduciary obligations as … [Read more...]

Your Bank Is Buying Another Bank…

I got a call today from the CFO of a client bank.  They are 80% of the way to buying a small bank.  Relatively speaking, the bank they are buying is very, very small. It's so small that, in all likelihood, the acquisition will have no impact on my client's fraud-bond or management liability insurance policies.  I told the CFO to give their … [Read more...]

Cruddy Proposals of Insurance

I am looking at a thirty-page proposal of insurance for a bank and I cannot figure out what the premium charges will be.  There is no summary, no comparison, no chart to help me figure out what is being charged. Agents, if you can not summarize the essence of your proposal on one page you have not presented your ideas well. … [Read more...]

Updated Bank Recommended Limits of Insurance

The most common issue bankers ask me about is limits of insurance. Does the bank buy enough insurance? Does the bank buy too much insurance? Do we have the right insurance? Several years ago, I put together a list of coverage and recommended limits of insurance for my bank clients.  I just completed version seven. Download the … [Read more...]

Everest Financial Rating Increased

Weiss Ratings has increased their rating for Everest, one of the premiere insurers for banks. The change is from a C to a C+. Under the Weiss rating system, I see a C as a solid insurer. Other rating services give out so many ratings of A that the grade is almost meaningless. (One service rates 90% of insurers as A- or better. How is that … [Read more...]

Banks In Trouble Find It Hard to Get Sound Insurance

A bank client shared some info that the FDIC is looking to warn banks that there are exclusions in some bank directors' and officers' insurance for regulatory issues. My experience is that these exclusions are almost always only on banks with regulatory issues. In general, insurers are not looking to sell insurance when the chances of a claim are … [Read more...]

Summary of Bank Civil Money Penalty Issue As Of Now

I just sent the following to a bank client. We had completed a coverage review and thought that the issue of Civil Money Penalties should be in a separate email - making it easier to forward on to his board. John Smith, In our conversation yesterday I recommended that the bank consider removing civil money penalties insurance from the directors' … [Read more...]

ABA Adds Standard Lines Insurance Offering

I’m a bit behind on my reading. I’ve had this in my reading pile for a few weeks now... The American Bankers Association's insurance arm is expanding to include property, general liability, and other standard lines of insurance coverage. Here is their announcement. I’m in full support of a robust marketplace. The more players the … [Read more...]

Does Your Bank Have Enough Insurance?

“Does our bank have enough insurance?” It's the most common question I hear. Several years ago I started putting out my recommended minimum insurance limits for banks of different sizes.  Download the Current Edition Here Same caveat from past editions - your mileage may vary. When insurance is a bargain, buy more. If rates are … [Read more...]

Bank Civil Money Penalties Insurance & The FDIC

Bankers got a note a month ago from the FDIC telling them that civil money penalties insurance on a bank directors' and officers' insurance policy was a no-no. CMP is a topic I have written about a fair amount. Today I had a conversation with several bankers and an association executive on the issue. I thought a video might be … [Read more...]