Regulatory Alerts2022-05-17
Solvency Requirements for Variable Annuities Consultation
The Reserve Bank of New Zealand invites submissions on proposed solvency standards for variable annuities to address their unique insurance, market, and behavioural risks. The consultation proposes a new capital treatment component that recognizes the risk-mitigating effects of dynamic hedging, contrasting with the current standard which does not fully account for such strategies. Stakeholders are asked to provide feedback on this approach by 03 October 2014, particularly regarding the integration of sophisticated modelling and hedging effectiveness factors similar to those used in other jurisdictions.
Share