RBNZ releases interim solvency standard

10 October 2022

The Reserve Bank of New Zealand (RBNZ) has released its insurance interim solvency standard, which takes account of upcoming changes to accounting rules.

Setting the minimum amounts of capital that insurers must hold, it will come into force on balance dates after next January 1, applying for three years.

“Insurers should now begin using this standard in their projections,” RBNZ said. “It will be applied to individual non-exempt insurers at various times in 2023 by changes to their condition of licence.”

A Final Solvency Standard will be consulted on in a second stage of the Solvency Standards review. Planning has begun for stage two, which will look at methods and calibrations.

The central bank started a review of the existing suite of insurance solvency standards in mid-2020.

“This process has helped to ensure that the interim standard will streamline solvency calculations and be fit-for-purpose,” Deputy Governor Christian Hawkesby said.