The Insurance Council of New Zealand has welcomed the Reserve Bank of New Zealand’s (RBNZ) “timely” review of the Insurance Prudential Supervision Act (IPSA).
“The Act was passed over six years ago, so it is timely in light of experiences since then and the pace of change in the sector globally to review matters,” ICNZ
chief executive Tim Grafton
“Ideally, the review should be conducted independently of the Reserve Bank, but the process they have outlined today provides plenty of scope for input.”
The RBNZ review process gives Kiwi insurers the opportunity to identify issues that they want to be considered and be consulted on the policy options that will emerge. The Prudential supervisor will also implement further consultation with an exposure draft containing the proposed legislative changes.
Any new law will be enacted by 2018 at the earliest, with RBNZ committing to a transition period for managing the changes.
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Grafton said he was pleased that RBNZ had identified potential issues that the industry body has also found concerning, including misleading non-insurance contracts.
“The Insurance Council will be consulting with its members to coordinate an industry response,” he said. “We are also keen to see greater transparency and cost-benefit analysis around RBNZ decision-making.”
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