The Reserve Bank is reviewing the existing suite of
insurance solvency standards, in part to address the new
accounting standard for insurance contracts (NZ IFRS
17).
We have identified a small number of minor errors
in the Interim Solvency Standard 2023 (the Standard) and
have issued an ‘Amendment Standard’ to correct them. We
have also taken the opportunity to ease sign-off
requirements for solvency returns such that signatories can
be specified by the conditions of an insurer’s
licence.
Stakeholders have made us aware of a number
of additional issues with the Standard and we thank them for
raising these. We intend to address these issues over coming
months by consulting on and issuing a further amendment.
This work will be prioritised over stage 2 of the Solvency
Review (i.e. the detailed review of methods and parameters).
We will advise the schedule for work on this further
amendment in due course.
References in conditions of
licence to the ‘Interim Solvency Standard 2023’ will,
from 1 August 2023, refer to the Standard as amended by the
Amendment Standard.
Questions about the amendment can
be addressed to [email protected].
Please
visit https://www.rbnz.govt.nz/have-your-say/2020/review-of-the-insurance-solvency-standards
to access the relevant
documents.
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