Regulatory Alerts2022-05-17
Review of Financial Products and Providers - Prudential Regulation of Insurance Consultation Paper May 2008
The Reserve Bank of New Zealand issued this consultation paper to seek input on detailed proposals for the prudential regulation of the insurance sector, following Cabinet approval of a regulatory framework in December 2007. The document outlines agreed requirements such as licensing, financial strength ratings, and fit-and-proper tests, while specifically requesting feedback on issues including the legal separation of life insurance business lines, the treatment of foreign insurer branches, and distress management frameworks. It proposes establishing statutory funds to ring-fence life insurance assets and protect policyholders from contagion risks associated with other insurance lines.
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