Regulatory Alerts2017-06-29
2017 Insurer Disclosures Thematic Review Report
The Reserve Bank of New Zealand assessed 36 licensed insurers to evaluate compliance with mandatory financial strength rating and solvency disclosure requirements under the Insurance (Prudential Supervision) Act 2010. The review found widespread non-compliance, with 53% of participants rated low or poor, primarily due to missing or non-prominent rating disclosures before contract renewal, incomplete solvency data in financial statements, and outdated website information. The regulator mandates that all insurers markedly improve these practices by ensuring ratings and solvency metrics are clearly presented across all distribution channels, specifically urging small, overseas, and complex entities to adopt standardized processes to meet regulatory standards.