Regulatory Alerts2022-05-17
Regulatory Impact Statement: Prudential Regulation of Insurance Solvency Standards
The Reserve Bank of New Zealand has issued solvency standards to address market failures such as information asymmetry and moral hazard within the insurance sector. These standards mandate a standardized, risk-based factor approach to calculate capital requirements, ensuring insurers maintain prudent financial strength to protect policyholders. The regulatory intervention aims to promote a sound insurance sector and public confidence by replacing inadequate status quo measures with consistent, legally compliant oversight.
Share