Regulatory Alerts2022-05-17
Solvency Standard for Captive Insurers Transacting Non-life Insurance Business
The Insurance Policy Prudential Supervision Department of New Zealand issued this revoked solvency standard to regulate the capital requirements for captive insurers transacting non-life insurance business. The document defines Actual Solvency Capital by specifying eligible capital instruments and mandatory deductions, while establishing a Minimum Solvency Capital floor of $1 million. It mandates that licensed insurers calculate solvency margins twice yearly using prescribed charges for insurance, asset, foreign currency, interest rate, and reinsurance recovery risks.
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