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Standards for insurers

This page provides the standards that currently apply to licensed insurers. These cover both solvency and 'fit and proper' requirements.

About solvency standards

Solvency standards set out a common method for insurers to measure their risks and ensure they have at least a minimum level of available capital to absorb losses before policyholders are affected.

Solvency standards are issued under Section 55 of the Insurance (Prudential Supervision) Act 2010 (IPSA). One or more of the standards may apply to a licensed insurer under the licensed insurer's conditions of licence.

We set solvency standards tailored to the New Zealand market, but also factor in international comparability where appropriate.

Read Section 55 of the Insurance (Prudential Supervision) Act 2010

Current standards

The table below has the solvency standards that currently apply, when they were issued (and amended) and the date they applied from.

Forms for solvency and solvency-exempt returns

You can access the forms you need for filing a solvency return or reporting if you are a solvency-exempt insurer on the New Zealand Insurer Data Collections page.

Reporting resources for insurers

The fit and proper standard

The fit and proper standard is made under Section 36 of the Insurance (Prudential Supervision) Act 2010 (IPSA) and sets out the requirements for a fit and proper policy required under Sections 34–35 of the IPSA.

The purpose of the policy is to ensure the board members and senior managers of an insurer have both the competence ('fitness') and integrity ('properness') to carry out their functions.

The standard applies to all licensed insurers, and the requirement for a licensed insurer to comply with this standard is continuous.