RBNZ seeks feedback on insurance governance and supervisory processes

The Reserve Bank of New Zealand (RBNZ) has launched a public consultation on insurance governance and supervisory processes, which will run until Feb. 21.

This is the last of four topic-specific consultations that are part of RBNZ’s review of the Insurance (Prudential Supervision) Act 2010 (IPSA). The regulator said the review seeks to ensure that the IPSA legislation remains fit for its purpose of promoting the soundness and efficiency of the insurance sector.

For this consultation, RBNZ will gather feedback regarding governance and risk management for insurers; accountability for directors, appointed actuaries and other key officers; supervisory oversight of major restructuring transactions; and provisions for data gathering and information disclosure to support its insurance supervision operations.

This consultation will be followed by an “omnibus” consultation in 2023, which will set out all of RBNZ’s proposed changes to IPSA.

“The proposed changes will help to underpin the more proactive and intensive approach to supervision that we have been developing in recent years across the sectors we regulate,” said Christian Hawkesby, RBNZ deputy governor and general manager for financial stability. “We are proposing to introduce a series of standards that will set out our expectations for insurers’ governance arrangements and risk management practices in a way that is clearer, more detailed and more enforceable.”