The Reserve Bank of New Zealand has issued guidelines on groups that can use descriptions such as insurance, assurance, underwriter and reinsurance.

New Zealand legislation allows the terms’ use by loss adjusters, brokers, intermediaries and other groups that are not insurers but work in the industry.

But the new guidelines prohibit their use by online insurers wanting to incorporate in the country without local policyholders or any intention to market to New Zealanders.

People not involved in insurance activity are also excluded.

The regulator will grant an exemption only if the public will not be led to believe the applicant is a licensed insurer.