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New Zealand central bank to review insurance regulations

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New Zealand central bank to review insurance regulations

The Reserve Bankof New Zealand on April 12 said it plans to review the Insurance (PrudentialSupervision) Act, or IPSA, more than five years after it took effect.

The New Zealand central bank will check if the framework forsupervising the insurance sector provides for a regime that is cost effective, risk-basedand promotes the soundness and efficiency of the industry. Toby Fiennes, head ofprudential supervision, said the central bank will examine "whether the legislationand associated regulations are working as intended."

The central bank will release an issues paper in late 2016 andwill seek comments from the public and stakeholders.