The Insurance Council of New Zealand is forming a working party to examine solvency standards proposed by the Reserve Bank of New Zealand.

The bank, which is the country’s insurance regulator, wants to change the requirement for recognition of third-party guarantees on insurers’ assets and the standard for off-balance-sheet exposures.

It has issued a consultation paper and is asking for submissions by August 9.

The working group will consider the proposals’ implications and possible unintended consequences.