Regulatory Alerts2024-12-11
Interim Solvency Standard 2023
The Reserve Bank of New Zealand issued the Interim Solvency Standard 2023 to establish regulatory capital requirements for licensed insurers operating in New Zealand. The standard mandates that insurers maintain a solvency margin calibrated to withstand a 1-in-200-year adverse event, with specific adjustments for seismic risk, to ensure policyholder obligations are met. It outlines detailed methodologies for calculating capital requirements, including prescribed capital charges for insurance, market, credit, and operational risks, alongside strict reporting and accountability obligations.
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