The Reserve Bank announced today it is planning a review of the Insurance (Prudential Supervision) Act (IPSA).
IPSA provided the first comprehensive framework for the prudential regulation and supervision of insurers in New Zealand.
Head of prudential supervision Toby Fiennes said, “We believe that IPSA has had a positive effect on the soundness of the insurance industry in New Zealand and that the legislation has generally worked well.
“However, it is over five years since IPSA came into force and this review will examine whether the legislation and associated regulations are working as intended,” Fiennes said.
The review seeks to ensure that IPSA provides for a supervisory regime that is cost effective, risk-based and that promotes the soundness and efficiency of the insurance sector.
The Reserve Bank plans to publish an issues paper in late 2016 and seek feedback from the public and stakeholders.