Should Banks' Investment Menus Continue to Feature BOLIs in Light of the 2023 Crisis?

This article is the first in a series that will provide the ingredients readers need to gather to reveal whether bank-owned life insurance (BOLI) is right for their bank. Over the series of articles, the authors will review this topic by examining the "what," "where," "who," "how," and "why" of BOLI.

While the intensity of last spring's banking crisis may have lessened to the degree that it is no longer dominating the news cycle, many economic pundits remain concerned that it is premature to give the "all's clear" sign. Given the current economic and political climate (i.e., with financial markets remaining under stress in sev-eral sectors and policymakers and regulators weighing options to prevent similar crises in the future), now may be a prime time for banks to proactively review their operations and investments – including that familiar financial institution favorite, bank-owned life insurance (BOLT).

Dominick Pizzano (Milliman) and Andrew Dalton (Milliman) both contributed to the development of this publication.

This article was first published in Benefits Law Journal, Autumn 2023, Volume 36, Number 3.

This publication is provided for your convenience and does not constitute legal advice. This publication is protected by copyright.