The Financial Accounting Standards Board (FASB) is an organization created in 1973 and tasked with creating standards for professional accountants. In the context of insurance, securities are often bought as investments as part of a life insurance plan. The company responsible for buying and reporting these security purchases must follow FASB guidelines.
The FASB is not a government agency. However, the Securities and Exchange Commission tasked it with creating accounting standards. Thus, it publishes rules and guidelines designed to set the industry standard for accounting professionals.
Although most insurance companies are primarily concerned with insurance, many make investments in securities either on behalf of the policyholders or on their own behalf. In both circumstances, they must follow FASB guidelines.
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