From the RBNZ recent update to subscribers to the insurance news feed:
On 16 September 2014 the Reserve Bank released for consultation a package of proposed amendments to the Insurance Solvency Standards. The consultation package includes exposure drafts incorporating policy areas that the Reserve Bank has previously consulted the industry on together with some other matters. The main proposals in the exposures drafts are in respect of the following:
• the solvency treatment of reinsurance;
• revision to the definition of capital, including criteria for capital instruments;
• the solvency treatment of guarantees;
• changes arising due to the passage of the Financial Reporting Act;
• changes to the Asset Risk Capital Charge; and
• enhanced disclosure requirements.
The consultation package can be accessed at this link.