This notice is given pursuant to section 55(1) of the Insurance (Prudential Supervision) Act 2010.

Notice

1. Title and Commencement

1. This standard may be cited as the Interim Solvency Standard 2023 (“Standard”) and comes into force on 1 January 2023.
2. The Standard is secondary legislation for the purposes of the Legislation Act 2019 and is issued under section 55 of the Insurance (Prudential Supervision) Act 2010.

2. Description

The Standard specifies the method for calculating and reporting the solvency margin of a licensed insurer. It also regulates the disclosure of solvency-related information. The Standard establishes a new framework for solvency determination and addresses the introduction of a new accounting standard for insurance contracts, NZ IFRS 17.

3. Availability

The Standard is available for inspection:

at the head office of the Reserve Bank of New Zealand, 2 The Terrace, Wellington; and

on the Reserve Bank of New Zealand’s website at https://www.rbnz.govt.nz/regulation-and-supervision/oversight-of-insurers/standards-and-requirements-for-insurers.

Copies are also available for purchase on request to the Reserve Bank of New Zealand at 2 The Terrace, Wellington.

Dated this 18th day of October 2022.

CHRISTIAN HAWKESBY, Deputy Governor, Reserve Bank of New Zealand.