The New Zealand insurance industry is being asked to comment on a draft interim solvency standard for insurers that determines the minimum amount of capital an insurer must hold.
Monday, July 26, 2021 10:28 AM
The Reserve Bank of New Zealand (RBNZ) is seeking feedback that provisional standards are needed to incorporate feedback into current solvency standards in light of future changes to Accounting Regulations (IFRS 17).
The Provisional Solvency Standards Consultation will be held for 10 weeks until October 1, 2021, and will come into effect in early 2022 and will be valid for approximately 3 years.
This standard is designed to reassure policyholders that they have sufficient funds to fulfill their promises to policyholders.
“Through a review of the standards, we have changed some of the methods insurers need to calculate capital requirements. This is to increase the consistency and clarity of the requirements and address new accounting standards in the insurance industry. That’s what Baskand says.
“This will ensure that our method of capturing risk is in line with international standards. We want to understand the capital impact on insurers and will conduct further analysis in consultation with the industry. We strongly encourage you to participate in the consultation. “
The Provisional Solvency Standards are part of a multi-year review of the 2010 Insurance Prudential Supervision Act (IPSA) and related insurer solvency standards.
Its content is communicated by bank oversight of the insurance industry and consultation with industry representatives and the general public.
“Consultation provides us with insightful feedback and we thank all those who have taken the time to provide their thoughts and ideas,” says Baskand.
The Interim Solvency Standards Consultation was released with feedback received from consultations on the structure of Solvency Standards and IFRS 17 (new accounting standards for insurance contracts), and the scope of the 2010 Insurance (Prudential Supervision) Act and its treatment abroad. rice field. Insurance Company-with answers to public submissions received.
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Input from insurers on solvency standards
Source link Input from insurers on solvency standards