Regulatory Alerts2022-05-17
Added · Updated
Reserve Bank of New Zealand Consultation on Financial Reinsurance Solvency Standards
The Reserve Bank of New Zealand proposes changes to life insurance solvency standards to ensure debt-like obligations in financial reinsurance are properly recognized in capital calculations. The new rules require insurers to identify and adjust for repayable amounts within reinsurance agreements that function more like loans than genuine risk transfers. Submissions on this exposure draft are invited by 9 December 2013 to address concerns that current standards may understate minimum solvency capital requirements.