The Federal Reserve on Thursday will recommend loosing rules on bank intermediaries and other private health insurance intermediaries to allow for the use of some new risk management tools to protect consumers from potential financial harm from financial institutions.
The announcement was made at the annual meeting of the Federal Reserve Board, which is composed of the central bank’s top five economists.
The Fed’s actions are part of the Fed’s effort to streamline the regulatory environment for the insurance industry, which includes a number of health insurance companies that were previously barred from using their own insurance companies to provide their services.
Under the plan, the Fed will recommend that banks should consider issuing a certificate of risk to a health insurance company to allow it to offer their own health insurance to customers.
The plan would also require the Fed to issue certificates of risk for some health insurance firms that are required to provide other forms of insurance, including some that are designed to help customers obtain care from their own doctors.
Under current rules, banks are prohibited from using the services of intermediaries like brokers or other health insurance brokers.
This prohibition has led to a glut of insurers offering insurance directly to consumers, leading to increased financial risk.
The Fed is also recommending that banks and insurance companies should develop a process for their employees to identify any health insurance intermediary they think should be required to obtain a certificate from the Fed and obtain that certificate from a bank.
The proposal, the first to be considered by the Fed, comes at a time when health insurance is facing a crisis in the insurance market.
While many insurers are continuing to sell health insurance directly and without intermediaries in many markets, other insurers are also seeing their numbers plummet due to the recession and rising costs.
The Federal Reserve said it will consider the proposal as part of a broader review of regulatory approaches to the insurance and reinsurance industry.
In the meantime, the agency said it is working with insurance companies and regulators to make changes to the current system that could reduce financial harm to consumers.