RBNZ consulting on reissue of Insurance Solvency Standards

Release date
16 September 2014

The Reserve Bank today released a package of papers for consultation on the Insurance Solvency Standards. The consultation is in respect of all of the Insurance Solvency Standards issued by the Reserve Bank.

Deputy Governor Grant Spencer said: "We are consulting on a number of changes that we propose to include in our Insurance Solvency Standards. We expect that the package of changes will clarify the intended application of the Solvency Standards in a number of areas. The changes will bring into effect a number of policies on which the Reserve Bank has already consulted."

The key proposals, which relate to reinsurance, guarantees and the criteria for qualifying capital instruments, have already been consulted on. This latest round of consultation gives interested parties the opportunity to consider the package as a whole. Other proposed amendments seek to clarify the application of the Standards, update the Standards for relevant legislative changes, and enhance disclosure requirements.

It is intended that the revised Insurance Solvency Standards will take effect from January 2015, with licensed insurers transitioning to the new requirements from their 2015 balance date.

The Bank has issued consultation material for proposed changes to the Insurance Solvency Standards. Submissions close on 3 November 2014.

The Reserve Bank will be running seminars on the amendments (including on the proposed Variable Annuities amendments). Details of the seminars are available on the website.

Media Contact:
Angus Barclay, External Communications Adviser
Ph 04 471 3698, mob 027 337 1102, angus.barclay@rbnz.govt.nz