The Reserve Bank of New Zealand has relaunched its planned review of the Insurance (Prudential Supervision) Act (IPSA), months after putting it on hold because of the coronavirus pandemic.

It will also commence a review of the associated Insurance Solvency Standards, which governs the minimum amount of capital that insurers are required to hold.

The review of IPSA will allow the regulator to take stock of developments since the legislation became law in 2010.

“Since 2010 the Reserve Bank and insurers have gained considerable experience across the legislation, helping us to see what works well and what could be improved,” RBNZ Deputy Governor and GM of Financial Stability Geoff Bascand said.

Over the next 12 months consultation papers will be released, seeking feedback on the scope of the legislation. These include looking at which organisations and products should be captured, how “insurance” is defined, the treatment of overseas insurers, statutory funds and the solvency regime.

On the review of solvency standards, Mr Bascand says the work will help the regulator fulfill its regulatory stewardship role by “monitoring and reviewing New Zealand’s system for measuring and reporting on insurance capital”.

Submissions to the solvency standards review must be received by November 12. For more information, click here.

To access the IPSA review relaunch paper, click here.