Regulatory Alerts2022-05-17
Policy Position Paper Non-life Solvency Standard Oct 2011
The Reserve Bank of New Zealand issues this policy position paper to define the calibration of catastrophe risk capital charges for non-life insurers under the Solvency Standard for Non-life Insurance Business. It mandates that loss return periods for earthquake risk increase progressively from 1 in 750 years for periods starting in September 2015 to a maximum of 1 in 1,000 years for periods starting in September 2016. This approach aims to ensure insurers hold sufficient capital to withstand major earthquakes, thereby promoting sector stability and minimizing reliance on government intervention following the Christchurch earthquakes.
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