2022-02-27

Restrictions on use of the word 'insurance'

The Reserve Bank of New Zealand mandates that only licensed entities may carry on insurance business in New Zealand under the Insurance (Prudential Supervision) Act 2010. The regulator prohibits unlicensed persons from using restricted terms such as 'insurance' or 'assurance' in their business names to prevent public confusion, with specific exemptions for industry associations and intermediaries. Entities seeking to use these words without conducting insurance business must apply for a specific exemption by providing their proposed name, reasons for use, and activity details to the licensing team.

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Insurers

There are restrictions on the use of certain words associated with insurance to help the public identify who is a licensed insurer.

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Requirement to be licensed

Under the Insurance (Prudential Supervision) Act 2010 (IPSA), anyone carrying on insurance business in New Zealand must be licensed by us. It is an offence to carry on insurance business in New Zealand without a licence.

The meaning of ‘carrying on insurance business in New Zealand’ is defined in section 8 of the IPSA. It includes:

acting as an insurer (in New Zealand or elsewhere) and

being liable under an insurance contract to a New Zealand policyholder.

Prohibition on using restricted words

There is a prohibition on:

using a restricted word in its name or title, or

carrying on activities in New Zealand using a name or title that includes a restricted word,

for any persons who do not carry on insurance business in New Zealand.

What the ‘restricted words’ are

The ‘restricted words’ are set out in section 219 of the IPSA. They are ‘insurance’, ‘assurance’, ‘underwriter’, ‘reinsurance’ or any other terms with a similar meaning.

If a person does not carry on insurance business in New Zealand, then the restricted words may not be used in their name or title.

However, this restriction does not apply to:

industry associations

those who, in connection with any insurance business carried on in New Zealand:

help issue or administer contracts of insurance or help collect premiums

act as an insurance loss adjustor or assessor, or

arrange, negotiate, solicit or promote contracts of insurance or their renewal (for example, a broker or other insurance intermediary).

Businesses with exemptions

We can grant exemptions where a person:

will not be carrying on insurance business in New Zealand, and

has a legitimate reason to use the particular word in the name or title.

An exemption to use a ‘restricted word’ is not the same as an exemption from being licensed under the IPSA. Persons with a ‘restricted word’ exemption are not required to be licensed, regulated or supervised under the IPSA – they are simply allowed to use a restricted word in their name.

We have granted exemptions to the following:

A—C

Assess Control Assure NZ Pty Ltd

AssuranceLab NZ Limited

Assurance Simplified Limited

Assure Admin Services Limited

Assure AML Limited

Assure Build Limited

Assure Legal Limited

Assure Rentals Whangarei Limited

Assure Safe Limited

Assure Safety NZ Limited

Assured Accounting Services Limited

Assured Construction Limited

Assured Home Care Limited

Assured Safety Consulting Limited

Assured Treasury Limited

AssuredCarbon Limited

Assuretech Limited

Assurezy Information Security Services Limited

Asure Accommodation Limited

Asure Security Limited

Brosnan Assured Limited

Climate Assured Homes Limited

Commercial Union General Insurance Staff Pension

F—M

Financial & Insurance Management Services Limited

FoodAssured Limited

Global Assurance Limited

Guardian Assurance Superannuation Plan

Insurance Advocates Limited

Insurance Technologies Limited

Insure Minder Limited

Insure Repair NZ Limited

Insured Group Limited

Insuranceai Limited

Insureitssafe Limited

InsureOS Limited

Medical Assurance Society KiwiSaver Plan

Medical Assurance Society Retirement Savings Plan

MGI Auckland Assurance Limited

N—T

New Zealand Farm Assurance Incorporated

New Zealand Global Halal Assurance Limited

P4Assure Limited

PE Insure Funding

Quality Assurance New Zealand Limited

Rest Assure Respite Trust Limited

Rest Assured Charitable Trust

Rest Assured Respite Trust Limited

Rest Assured Limited

Safety Assured NZ Limited

Sum Insured NZ Limited

Thompson Wentworth Insurance Management Limited

How to apply for an exemption

If you are subject to the restriction, but you want to use the restricted words in your name or title, you may seek an exemption from us.

Email licensing@rbnz.govt.nz with the following information, and we will get in touch:

the (proposed) name of your business

your reasons for using a restricted word

the (proposed) activities your business will carry on in New Zealand

whether or not your business will carry on insurance business in New Zealand.

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