Vero, IAG, QBE and Lumley are among 99 companies to receive Reserve Bank of New Zealand insurance licences.

All insurers in the country were required to obtain a licence within three years of safeguards introduced in September 2010.

Reserve Bank Head of Prudential Supervision Toby Fiennes says the legislation protects policyholders and the public interest, plus New Zealand’s financial system and economy.

“The bank achieves this through a system of licensing insurers, prudential requirements, supervising compliance and acting when an insurer is in financial distress or other difficulties, he said.

Since March last year insurers have operated under provisional licences while awaiting approval. New entrants need a full licence before starting business in the country.

“The purpose of the legislation is not to eliminate all risk of insurer failure, but to reduce the likelihood of failure,” Mr Fiennes said.

Other groups to receive licences include AIG, Allianz, Berkshire Hathaway, Genworth and Mitsui Sumitomo.