The Reserve Bank of New Zealand has begun a public consultation on governance and supervisory processes in the insurance sector.
The consultation, which will run until February, is the last of four topic-specific consultations making up the Reserve Bank’s review of the Insurance (Prudential Supervision) Act 2010 (IPSA).
The RBNZ said the review would examine whether IPSA remains fit for purpose more than a decade after coming into law. The legislation aims to promote soundness and efficiency within the industry.
The central bank and regulator is looking for feedback on governance and risk management for insurers; accountability for directors, appointed actuaries and other key officers; supervisory oversight of major restructuring transactions; and provisions for data gathering and information disclosure to support its insurance supervision operations.
A so-called “omnibus” consultation will follow in 2023, outlining the RBNZ’s planned changes for the sector.
The omnibus consultation will set out all of RBNZ’s proposed changes to IPSA.
Christian Hawkesby, RBNZ deputy governor and general manager for financial stability, said the proposed changes would “help to underpin the more proactive and intensive approach to supervision that we have been developing in recent years across the sectors we regulate”.
“We are proposing to introduce a series of standards that will set out our expectations for insurers’ governance arrangements and risk management practices in a way that is clearer, more detailed and more enforceable,” he added.
