The Reserve Bank of New Zealand (RBNZ), the country's central bank, has started a consultation process on governance and risk management for insurers.
The Insurance (Prudential Supervision) Act 2010 is being reviewed by RBNZ, and this consultation is the fourth and last topic-specific consultation (IPSA). The evaluation will make sure that the IPSA Act is still appropriate for advancing the stability and effectiveness of the insurance industry.
An "omnibus" consultation that will include all of the proposed modifications to IPSA will be held in 2023 as a result of this consultation.
In addition to exploring accountability for directors, appointed actuaries, and other key officials, this feedback exercise also examines supervisory oversight of significant reorganization transactions and procedures for information gathering and disclosure to support insurance supervision.
The RBNZ deputy governor and general manager for financial stability, Mr. Christian Hawkesby, stated that the reforms "will help to reinforce the more proactive and intense approach to supervision that we have been adopting in recent years across the sectors we oversee."
In order to make our expectations for insurers' governance structures and risk management processes clearer, more specific, and more enforceable, we propose to create a set of standards.
By February 21, 2023, responses to the policy issues outlined in this governance, supervisory processes, data, and disclosure consultation must be delivered.
