Regulatory Alerts2022-05-17
Response to Submissions: Insurance Solvency Standards and NZ IFRS 16 Leases
The Reserve Bank of New Zealand finalizes changes to insurance solvency standards to align with the accounting standard NZ IFRS 16 Leases following industry consultation. The updated rules limit capital deductions for right-of-use assets on intangible items to the net value over lease liabilities and exclude these assets from concentration risk charges. These amendments take effect for financial years beginning on or after 1 January 2019, with survey results indicating a minimal expected impact on insurer solvency ratios.
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