Change Of Interim Solvency Standard Implementation Date

In July the Reserve Bank – Te Pūtea Matua ran a consultation on an interim Solvency Standard for insurers, which determines the minimum amounts of capital that insurers must hold.

During our consultation we became aware that many insurers might find it difficult to be ready by the implementation date we consulted on, 1 January 2022. This date was chosen to permit use by early adopters of IFRS 17, the new accounting standard for insurance contracts. However, there do not seem to be any insurers planning early adoption of the standard, and a later start date was widely preferred by industry.

As such, we have decided to change the date of implementation of the Interim Solvency Standard to 1 January 2023. This date aligns with the date on which insurers must adopt IFRS 17. This will also allow us to address some of the more significant points raised in the consultation and insurers will have sufficient time to prepare their systems and processes.

We are currently in the process of analysing remaining feedback from the consultation and will be publishing a summary of this material in due course. We intend to make use of the additional time to further engage with industry and stakeholders. We are aiming for the revised and approved interim standard to be published by 01 October 2022.

More information:

• Reserve Bank consults on interim insurance solvency standard

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