Regulatory Alerts2022-05-17
Insurance Solvency Standards Reissue Regulatory Impact Statement
The Reserve Bank of New Zealand issued this regulatory impact statement to propose comprehensive revisions to the Insurance Solvency Standards for life and non-life insurers under the Insurance (Prudential Supervision) Act 2010. The proposed reissue introduces stricter capital charges for guaranteed assets by adding a 2% risk factor, applies maturity-based haircuts to short-term guarantees, and mandates enhanced reporting and capital requirements for debt-like financial reinsurance arrangements in the life insurance sector. Additional updates align the standards with the Financial Reporting Act 2013, clarify technical capital calculations, expand disclosure obligations, and outline a phased implementation plan alongside ongoing monitoring and review mechanisms.