Regulatory Alerts2022-05-17
Summary of submissions and policy decisions on Solvency Requirements for Variable Annuities
The Reserve Bank of New Zealand issued final solvency capital requirements for variable annuities following a 2014 public consultation that received eight written submissions and workshop feedback. The regulator refined the draft rules to recognize alternative risk mitigation strategies like reinsurance, mandate Board-approved risk management plans, and require independent actuary reports to ensure prudent capital backing. These revised standards will be implemented as a separate Solvency Standard for Variable Annuity Business in early 2015, requiring insurers to maintain a separate statutory fund for this high-risk business.
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