Fit and proper standard

Oct 2020 Insurance

The Reserve Bank is relaunching its Review of the Insurance (Prudential Supervision) Act 2010 following deferrals due to work on the RBNZ Act and due to COVID-19.  An initial paper has been released setting out the anticipated timeline for the project.

The Reserve Bank is also launching a review of the Insurer Solvency Standards. These documents govern the minimum capital that insurers are required to hold, and need to be reviewed in light of the findings of a number of recent reviews, as well as the impending introduction of IFRS 17 – Insurance Contracts.  A paper has been released setting out the timeline for the project as well as the principles intended to guide the review.  Feedback is invited.

Aug 2020 Insurance

The Reserve Bank is publishing an amended Insurer Solvency Return and Guidance Note (v5.3) to improve the information provided through projections of solvency. These documents will be in-force from 1 September 2020.

Table 1.6 of the Insurer Solvency Return now requires non-exempt insurers to provide projections on two bases – with and without capital movements (such as dividends and capital injections). Paragraph 55 of the Guide describes how this table should be completed.

Paragraph 57 of the Guide now advises on which accounting standards, bases & methodologies should be employed. Please note that at this time the impact of IFRS17 (“Insurance Contracts”) on solvency calculations is not known with a high degree of certainty, and that the Reserve Bank will issue a further communication when this view changes.

The Reserve Bank anticipates that the next set of substantive changes to the Insurer Solvency Return and Guide will be released in early 2022, in conjunction with expected updates of solvency standards.

Jul 2020 Insurance

The Reserve Bank of New Zealand issued a licence under section 19 of the Insurance (Prudential Supervision) Act 2010 (the Act) to Resolution Life New Zealand Limited on 22 June 2020.

The Reserve Bank of New Zealand has given notice pursuant to section 28(2) of the Act that it remains satisfied of the matters in section 19(1)(a) to (m) of the Act in respect of the acquisition of AMP Life Limited by Resolution Life Australia Pty Ltd.

Read more about the AMP Life sale

Jul 2020 Insurance

The Reserve Bank of New Zealand is satisfied that AIA International Limited is no longer carrying on insurance business in New Zealand according to the Insurance (Prudential Supervision) Act 2010 (“the Act”). At the request of AIA International Limited, the licence issued to it on 22 August 2013 under section 19 of the Act was cancelled on 8 July 2020 pursuant to section 30(1) of the Act.

Jun 2020 Insurance

The Reserve Bank has completed the thematic review of the Appointed Actuary role and regime, with the report published in June 2020

• Read the report