The Insurance (Prudential Supervision) Regulations 2010, most of which came into force on 1 February 2011, provide further details for the implementation of the new insurance prudential supervision regime. The regulations include:
- prescribed jurisdictions for home/host regulatory recognition;
- reassessment requirements for fit and proper certification;
- matters relating to the disclosure of overseas policyholder preference (which come into force on 7 March 2012 when all insurers must have either a full or provisional licence under the new regime); and
- limited exemptions for insurers with annual gross written premium less than $1.5 million.
Fit and proper standard and guidelines released
There are various standards that insurers will need to adhere to as part of the prudential requirements of the Insurance (Prudential Supervision) Act 2010. A draft Fit and proper standard has now been released by the Reserve Bank for stakeholder consultation. The closing date for responses to this consultation is 25 March 2011.
In addition to the Fit and proper standard the Bank has also issued Fit and proper guidelines and Governance guidelines as additional contextual material to assist in stakeholder consideration of this standard.
Revised timetable for solvency standards
Following the recent Christchurch earthquake and its effect on the insurance industry, the Reserve Bank has extended the timeframe toward delivery of finalised solvency standards. The revised timetable toward the release of finalised solvency standards is available here.