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The Insurance (Prudential Supervision) Act 2010 (IPSA)

We administer the IPSA to promote:

  • the maintenance of a sound and efficient insurance sector
  • public confidence in the insurance sector.

The IPSA applies to all insurers carrying on business in New Zealand (as defined by the IPSA) and includes:

  • a licensing system for insurers, based on meeting the IPSA’s prudential requirements
  • supervision by the Reserve Bank of compliance with the prudential requirements
  • powers to take action in respect of insurers in financial distress or other difficulties, or in respect of non-compliance with this Act.

Read about the review of the IPSA

More information about the legislation

The IPSA and the commencement orders that brought various sections of the IPSA into force on specific dates are available from

Read the Insurance (Prudential Supervision) Act 2010

Read the Insurance (Prudential Supervision) Act Commencement Order 2010

Read the Insurance (Prudential Supervision) Act Commencement Order (No 2) 2010

Read the Insurance (Prudential Supervision) Amendment Act 2013


The insurance sector is also subject to regulations. The Insurance (Prudential Supervision) Regulations 2010 relate to:

  • prescribed jurisdictions for home and/or host regulatory recognition and other provisions
  • reassessment requirements for fit and proper certification
  • matters relating to disclosing overseas policyholder preference
  • limited exemptions for insurers with annual, gross, written premiums less than $1.5 million
  • deeming that certain consumer credit insurance contracts are not life policies when issued by a non-life insurer
  • statutory funds.

Read the Insurance (Prudential Supervision) Regulations 2010


Licensed insurers need to adhere to the following standards as part of our prudential requirements:

Standards for insurers

Financial strength-rating agencies

We need to approve financial, strength-rating agencies for the purposes of Sections 60–71 of the Insurance (Prudential Supervision) Act 2010 (IPSA). This page lists the approved rating agencies and has guidelines to help agencies understand the IPSA’s requirements.

Financial strength-rating agencies