The Reserve Bank of New Zealand - Te Pūtea Matua is today publishing a ‘review version’ of the insurance interim solvency standard, which determines the minimum amounts of capital that insurers must hold.
A review of the insurance solvency standards began in October 2020. Following two initial consultation cycles, an exposure draft of an interim solvency standard was published in July 2021. A quantitative impact assessment was run in parallel to the consultation on the standard and the results of both were published in a feedback statement in March 2022.
The review version of the Interim Solvency Standard contains a number of amendments over the July 2021 version. 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.
We will also be conducting a second quantitative impact assessment on a largely voluntary basis. Insurers that would like to participate are invited to download the template provided below and submit it to: firstname.lastname@example.org by Friday 15 July 2022.
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. We plan to publish the final version of the Interim Standard by the end of September.
Brendan Manning, Senior Adviser External Stakeholders