The Reserve Bank of New Zealand (RBNZ) is making “good progress” with its review of the Insurance Prudential Supervision Act (IPSA), the central bank says in an update.

RBNZ also included in the Insurance Industry Update developments in the last few months such as new appointments and solvency standards decisions.

“The original IPSA Act was enacted in September 2010 to bring New Zealand up-to-date with international standards for prudential regulation,” the central bank says.

“We are reviewing the prudential policy settings for the insurance sector as part of our stewardship of the legislation.

“The review seeks to ensure that IPSA provides for a supervisory regime that is cost effective, risk-based and that promotes the soundness and efficiency of the insurance sector.”

RBNZ says work on the Interim Solvency Standard continues after receiving all the input it needs.

The central bank expects to publish the implementation version of the standard around the end of September, before bringing the rule into force on January 1 next year. The standard will be applied to individual insurers when their first annual NZ IFRS 17 reporting period commences next year.

The update says the appointments made in May including elevating Acting Head of Supervision Scott McKinnon to Director of Prudential Supervision round up the RBNZ Financial Stability Group’s Leadership team.

“These appointments are part of the plans for the expanded and refreshed structure of the Reserve Bank’s Leadership Team,” the update says.

The update says the Council of Financial Regulators’ (CoFR) Insurance Forum continues to meet on a quarterly basis.

Some of the issues discussed at the last meeting included the practical challenges around meeting Russian sanction obligations, the impacts of rising inflation and supply chain disruptions and the challenges associated with the borders reopening.

CoFR is focused on contributing to the efficiency and coordination of insurance sector regulation by providing a space to discuss risks, issues and on-going and up-coming regulatory matters relating to licensed insurers.