Regulatory Alerts2015-02-27
Reserve Bank of New Zealand 2014 Insurer Risk Governance Thematic Review Report
The Reserve Bank of New Zealand conducted a thematic review of risk governance among 17 licensed insurers in 2014 to assess the quality of their risk management frameworks under the Insurance (Prudential Supervision) Act. The review identified that while overall governance quality is generally strong, significant weaknesses remain in implementing robust risk appetite frameworks, conducting independent assessments, and aligning staff incentives with risk objectives. The regulator encourages all insurers to strengthen their risk cultures, enhance board-level challenge, and ensure accountability extends to front-line staff to support the self-discipline pillar of supervision.
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