Regulatory Alerts2022-05-17
Solvency Standard for Variable Annuity Business 2015
The Reserve Bank of New Zealand issued this standard to establish specific solvency margin requirements for life insurers conducting Variable Annuity business. It mandates a distinct capital charge calculation that incorporates dynamic hedging effects and requires insurers to maintain a separate statutory fund and a comprehensive risk management strategy. Compliance further necessitates independent actuarial validation of capital models and hedging programs to ensure adequate prudence and financial stability.
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