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Reserve Bank seeks industry feedback on policyholder security

Commenting on the review, Reserve Bank adviser Monetary Policy and Analysis Ben Sarkel White said that it is in the very “options” stage and no firm decisions have been made, so feedback from the industry is actively encouraged. Said that.

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“We have issued a consultation paper with fairly open questions about each section of the law,” said Sirkel White.

“This is not the kind of consultation that we have already decided what we want to do and are asking the industry for comment. Beyond that, there are various options that we think are worth considering, and most of them. In that case, we still do not have a firm internal view of what we want. “

“Therefore, feedback is especially welcome. We’ll be listening to comments on which options are good or bad ideas. The reason is especially helpful to us,” he said.

“If you’re having problems with some of our suggestions, it’s very helpful if you have a reason to avoid them.

“If we have any issues or issues we haven’t thought about to address, they are also welcome. So this is an open consultation and we really want the insurance sector to be involved. is.”

The consultation should consider the amount of capital that the insurer should hold as a buffer, or “solvency capital,” and the insurer should provide policyholders with more information about their rights if the policy ends early. Also discuss if there is. It also provides the general public with the opportunity to comment on whether current legislation gives them the level of security they expect.

read more: Reserve Bank reports “good progress” in investigating data breaches

The IFSA review included a total of five consultations, and Sirkel White said the full review should be completed by the end of 2022.

“This is the second of the five planned consultations,” explained Sirkel White.

“The first was about the scope of IPSA and overseas insurance coverage announced at the end of last year. It’s about policyholder security and is currently working on enforcement and pain management, this year. I would like to announce it at the end of or early next year. “

“There are also things about key executive and administrative functions (such as governance and director duties), as well as things that came up during the supervisory process, disclosure, regulatory mechanisms, and reviews,” he says. .. Added.

“We hope that the review will be completed by 2022 and that 2023 will be the time to better announce the news we are planning to do and actually start the legislative process.”

The policyholder safety consultation period has been extended to November 15, 2021 and can be submitted via the Reserve Bank’s online consultation form.

Reserve Bank seeks industry feedback on policyholder security

Source link Reserve Bank seeks industry feedback on policyholder security

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