Regulatory Alerts2022-05-17
Solvency Standard for Life Insurance Business December 2014
The Prudential Supervision Department of the Reserve Bank of New Zealand issued this standard under the Insurance (Prudential Supervision) Act 2010 to regulate licensed insurers carrying on life insurance business. It mandates the calculation of a Solvency Margin based on Actual Solvency Capital and Minimum Solvency Capital, requiring a minimum Fixed Capital Amount of 5 million New Zealand dollars unless specific exemptions apply. The document establishes detailed rules for capital composition, risk charges, and reporting obligations, including separate calculations for each Life Fund and consolidated group solvency requirements.
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