Regulatory Alerts2022-02-27
How we regulate insurers
The Reserve Bank of New Zealand administers the Insurance (Prudential Supervision) Act 2010 to maintain a sound insurance sector and public confidence. This framework applies to all insurers in New Zealand through a licensing system, ongoing supervision, and enforcement powers for non-compliance or financial distress. Regulated entities must also adhere to specific prudential regulations and approved financial strength-rating agency standards.
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How we regulate and supervise insurers
Read about the legislation and regulations for the New Zealand insurance sector that we administer.
Published:
Last updated:
The Insurance (Prudential Supervision) Act 2010 (IPSA)
We administer the IPSA to promote:
the maintenance of a sound and efficient insurance sector
public confidence in the insurance sector.
The IPSA applies to all insurers carrying on business in New Zealand (as defined by the IPSA) and includes:
a licensing system for insurers, based on meeting the IPSA’s prudential requirements
supervision by the Reserve Bank of compliance with the prudential requirements
powers to take action in respect of insurers in financial distress or other difficulties, or in respect of non-compliance with this Act.
Read about the review of the IPSA
More information about the legislation
The IPSA and the commencement orders that brought various sections of the IPSA into force on specific dates are available from Legislation.govt.nz:
Read the Insurance (Prudential Supervision) Act 2010
Read the Insurance (Prudential Supervision) Act Commencement Order 2010
Read the Insurance (Prudential Supervision) Act Commencement Order (No 2) 2010
Read the Insurance (Prudential Supervision) Amendment Act 2013
Regulations
The insurance sector is also subject to regulations. The Insurance (Prudential Supervision) Regulations 2010 relate to:
prescribed jurisdictions for home and/or host regulatory recognition and other provisions
reassessment requirements for fit and proper certification
matters relating to disclosing overseas policyholder preference
limited exemptions for insurers with annual, gross, written premiums less than $1.5 million
deeming that certain consumer credit insurance contracts are not life policies when issued by a non-life insurer
statutory funds.
Read the Insurance (Prudential Supervision) Regulations 2010
Standards
Licensed insurers need to adhere to the following standards as part of our prudential requirements:
Standards for insurers
Financial strength-rating agencies
We need to approve financial, strength-rating agencies for the purposes of Sections 60–71 of the Insurance (Prudential Supervision) Act 2010 (IPSA). This page lists the approved rating agencies and has guidelines to help agencies understand the IPSA’s requirements.
Financial strength-rating agencies