Regulatory Alerts2022-05-17
Solvency Standard for Non-life Insurance Business (October 2011, amended December 2014)
The Insurance Policy Prudential Supervision Department of the Reserve Bank of New Zealand issued this revoked solvency standard to regulate the capital adequacy of licensed non-life insurers under the Insurance (Prudential Supervision) Act 2010. The document defines Actual Solvency Capital by specifying eligible capital instruments and mandatory deductions, while establishing Minimum Solvency Capital requirements through risk charges for insurance, catastrophe, asset, foreign currency, interest rate, and reinsurance recovery risks. It mandates that appointed actuaries perform solvency calculations and require licensed insurers to report their solvency position to the Bank twice annually, with a minimum capital floor of $3 million.
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