Implementation of Insurance Prudential Supervision Act 2010
The Insurance Prudential Supervision Act (“IPSA”) marks a milestone in the history of insurance regulation for New Zealand. For the first time, New Zealand insurance companies will need a licence to conduct insurance business and are subject to the regulation of the Reserve Bank of New Zealand (“RBNZ”).
In late 2011, Deloitte conducted a survey on the implementation of the IPSA to understand how the industry is responding to this change. We explored, among other things:
- What areas is the industry handling comfortably?
- What areas are going to prove more of a stretch?
- What does the industry say about its immediate priorities?
The good news is that, in broad terms, the industry is feeling optimistic. This is a great testament to the RBNZ and the lengthy, consultative approach they have adopted. The potential hotspots of solvency and capital appear as if they will have only a moderate impact on the industry. In broad terms, we also expect the industry to meet legislation timeframes and we do not see any significant changes to the legislation in the foreseeable future.
Despite this optimism, it is clear that IPSA has had a number of important impacts, which makes this report essential reading for those involved in the insurance industry.
If you would like to speak to someone about the Implementation of Insurance Prudential Supervision Act 2010 survey, please contact Charles Hett (Wellington) or Greg Haddon (Auckland).