The New Zealand Law Commission’s inquiry into the country’s archaic Life Insurance Act has ended with a call for the Act to be scrapped. The call comes as the New Zealand Government considers the finer points of regulating the insurance industry next year.

The commission has recommended that the 94-year-old legislation be dropped and that financial disclosure and actuarial checks on life insurance companies be improved.

In a report released last week, the commission recommended a new act covering insurance contracts. It’s expected that such legislation would embrace the activities of the general insurance sector.

The commission also wants some form of government oversight set up to help policyholders monitor the solvency or financial soundness of insurance companies.

Acknowledging that most NZ insurance companies are Australian-owned, the commission has also called for an “exemptions regime” for overseas-based insurers from certain requirements if they can show they are subject to similar requirements in their home countries.