Kiwis give thumbs up to prudential regulation bill
New Zealand insurers have given their initial approval to draft prudential supervision legislation as reform of the previously unregulated industry continues.
The Insurance (Prudential Supervision) Bill is due to be introduced to Parliament late in the year. The release of draft legislation this month follows earlier policy approval by the NZ Cabinet.
Insurance Council of New Zealand CEO Chris Ryan told insuranceNEWS.com.au local insurers are “reasonably happy” with proposed legislation which would hand the regulator powers to liquidate non-conforming companies, place limits on non-insurance activities and subject insurers to minimum solvency standards.
“We’ve had a lot of consultation with the Reserve Bank in the preparation of this draft and it’s a reasonably thorough and sensible overview of the industry,” Mr Ryan said.
Stakeholders have until June 22 to respond to the proposed legislation, which industry observers regard as a moderate approach to industry supervision.
The Reserve Bank was named NZ insurance industry regulator in June 2007 in line with Government aims to lift regulatory standards.
Four bills are set to impact the local insurance industry, including the Financial Service Providers (Registration and Dispute Resolution) Bill; the Financial Advisers Bill; and the Insurance Contracts Bill.
The reforms seek to register all financial services providers, set minimum qualifications for all financial advisers, specify prudential supervision and control market conduct and contracts.
The Insurance (Prudential Supervision) Bill is due to be introduced to Parliament late in the year. The release of draft legislation this month follows earlier policy approval by the NZ Cabinet.
Insurance Council of New Zealand CEO Chris Ryan told insuranceNEWS.com.au local insurers are “reasonably happy” with proposed legislation which would hand the regulator powers to liquidate non-conforming companies, place limits on non-insurance activities and subject insurers to minimum solvency standards.
“We’ve had a lot of consultation with the Reserve Bank in the preparation of this draft and it’s a reasonably thorough and sensible overview of the industry,” Mr Ryan said.
Stakeholders have until June 22 to respond to the proposed legislation, which industry observers regard as a moderate approach to industry supervision.
The Reserve Bank was named NZ insurance industry regulator in June 2007 in line with Government aims to lift regulatory standards.
Four bills are set to impact the local insurance industry, including the Financial Service Providers (Registration and Dispute Resolution) Bill; the Financial Advisers Bill; and the Insurance Contracts Bill.
The reforms seek to register all financial services providers, set minimum qualifications for all financial advisers, specify prudential supervision and control market conduct and contracts.