RBNZ releases review version of interim solvency standard

6 June 2022

The Reserve Bank of New Zealand (RBNZ) has published a review version of an insurance interim solvency standard and says it expects the finalised document will be released by the end of September.

The standard, which determines the minimum amounts of capital that insurers must hold, takes account of upcoming changes to accounting rules and incorporates feedback received to date.

RBNZ says a number of amendments have been made to the exposure draft, which was put out in July last year.

“Although we are not conducting a full consultation on this version of the standard, we invite interested parties to comment on any technical or workability issues not previously identified,” it says.

Insurers are also invited to participate in a second quantitative impact assessment, which will be conducted on a largely voluntary basis.

“We plan to finalise the interim standard over the coming months, taking into account the feedback received on the review version and the results of the new quantitative impact assessment,” it says.

RBNZ said in March that under a revised schedule the standard will come into force on balance dates after next January 1, and it will apply for around three years.