Audit requirements for insurer data returns

Release date
24/10/2018

Status: The consultation is now closed and final decisions communicated

The Reserve Bank having considered the submissions made has decided to

  • defer introduction of an audit requirement for the Insurer Return in order to:
    • allow other initiatives to proceed and their impact to be assessed, prior to imposing a requirement that carries considerable additional cost for insurers, and
    • 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 that audits of year-end Insurer Solvency Returns provide ‘reasonable assurance’, commencing with the first audit in 2019. Auditors will be asked to provide assurance that “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:

Audit requirements for insurer data returns: consultation paper feedback statement (PDF 613KB)

Submissions Received:

The following submissions were received. Listing may refer to trading names rather than legal entity.

AA Insurance
Accuro
AIA New Zealand
Allianz Australia
AMP
Cigna
Co-op Life
Ernst & Young
BNZ Life Limited
Fidelity Life
Financial Services Council
FMG
Health Funds Association
Kiwi Insurance
KPMG
IAG
Insurance Council of New Zealand
Lloyds
Manchester Unity
Medical Assurance Society
New Zealand Captive Insurance Association
New Zealand Society of Actuaries
OnePath Life
PriceWaterhouseCoopers
Southern Cross
Sovereign 
Suncorp New Zealand
Union Medical Benefits Society
Unison
Westpac Life

 

Consultation period: 19 October 2017 - 16 December 2017

19 October 2017

The Reserve Bank has released a Consultation Paper: Audit requirements for insurer data returns. The paper sets out:

  • the rationale for reconsidering audit requirements;
  • the Reserve Bank's proposal and possible alternatives; and
  • a brief discussion of possible costs and benefits.

Interested parties are invited to provide comments on the questions set out and on any other issues they consider should be taken into account, by 5pm, Friday 16th December 2017.

Consultation document: Audit requirements for insurer data returns (PDF 177KB)