Regulatory Alerts2022-05-17
Reserve Bank of New Zealand Guideline on Carrying on Business in a Prudent Manner
The Reserve Bank of New Zealand issued this guideline to clarify the assessment criteria for licensed insurers carrying on business in a prudent manner under the Insurance (Prudential Supervision) Act 2010. It details the specific factors the regulator considers, including financial and human resources, internal controls, risk size, reinsurance arrangements, non-insurance activities, and related party transactions. The document establishes that prudent management is a permanent requirement evaluated during licensing and ongoing reviews, with the authority to impose conditions on licenses based on these assessments.
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