Regulatory Alerts2022-05-17
Consultation Paper on Solvency Standard for Life Insurance Business: Financial Reinsurance
The Reserve Bank of New Zealand proposes amendments to the Solvency Standard for Life Insurance Business to regulate financial reinsurance arrangements affecting capital charges. The draft introduces strict recognition rules for reinsurance benefits and mandates the inclusion of debt-like repayable amounts in the Insurance Risk Capital Charge calculation. Insurers must also conduct stress testing to identify these obligations and submit detailed reinsurance statements to the regulator.
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