This omnibus consultation sets out a full set of proposals for amending the legislation. It is based on feedback from earlier consultations and is the final policy consultation for the IPSA review.
Deputy Governor Christian Hawkesby says the Reserve Bank’s prudential supervision of insurance promotes a sound and efficient insurance sector in New Zealand and promotes public confidence in the sector.
“The proposed changes will support the Reserve Bank’s evolution from light touch supervision towards a more proactive and intensive approach that is more closely aligned with international best-practice,” Mr Hawkesby says.
“The proposals will give us an expanded set of supervisory and enforcement tools. These tools will enable a more graduated and proportionate set of responses, ranging from remedial action to address risks through to robust enforcement measures for serious breaches.”
“We will be able to set out clearer and more enforceable rules in areas such as governance and risk management, making us better equipped to address emerging issues such as cyber security and climate.”
For further information, please read the accompanying non-technical summary and consultation paper. We are welcoming submissions on the policy questions set out in this omnibus consultation until 12 December 2023.
Once the policy is finalised, we will consult on an exposure draft of an IPSA Amendment Bill; this consultation is likely to commence in early 2025.
Background to the IPSA review
In 2017, we began a review of the Insurance (Prudential Supervision) Act 2010 (IPSA). The first stage of the review, which comprised identification of issues at a high level and an initial public consultation process, was completed in 2017. The review was suspended in early 2018 to allow resources to be focused on the review of the Reserve Bank Act. We announced the relaunch of the review on 1 October 2020.
The second stage of the review involved releasing four options papers working through different sections of IPSA.
We are now issuing an ‘omnibus consultation’ which sets out a full set of proposals for amending IPSA. Most of the proposals draw on previous consultations and feedback to set out final policy proposals. However, there are a small number of new areas of consultation – including statutory purposes and principles, and some ideas for policyholder protection – and some areas where we are asking for further stakeholder input on a narrowed range of options.
More information
Review of the Insurance Prudential Supervision Act 2010 (IPSA) – Reserve Bank of New Zealand – Te Pūtea Matua (rbnz.govt.nz)
