After considering the submissions we received we decided to:
- defer introducing an audit requirement for the insurer return to:
- allow other initiatives to proceed and their impact to be assessed, before imposing a requirement that carries considerable additional cost for insurers
- allow any such requirement to be framed in the context of NZ IFRS 17 and the changes that this new standard is likely to engender in insurance data collections
- require audits of year-end insurer solvency returns to provide ‘reasonable assurance’, starting from the first audit in 2019. Auditors are now asked to provide assurance that “the data as reported is compliant with the Solvency Standard, consistent with audited financial statements and prepared in accordance with the definitions and guidance documents provided by the RBNZ”. Projections and catastrophe charges will continue to be carved out of this requirement.
Further information and comment on the submissions received is available in the feedback statement.
We received 30 submissions which are available to view by searching in the document library by keywords audit requirements, insurer, consultation, and the date 2017.
The consultation paper set out:
- the rationale for reconsidering audit requirements
- our proposal and possible alternatives
- a brief discussion of possible costs and benefits.