New Zealand: Financial Sector Assessment Program: Detailed Assessment of Observance-Insurance Core Principles
IMF Staff Country Reports, May 12, 2017
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- New Zealand: Financial Sector Assessment Program: Detailed Assessment of Observance-Insurance Core Principles
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Bibliographic details
- Published: May 12, 2017
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781475599954.002
Executive summary and main findings
- This paper presents an assessment of the Observance of Insurance Core Principles in New Zealand.
- Observance of these principles in New Zealand falls significantly short.
- In some areas, the implementation of initiatives that would improve observance is incomplete.
- Supervisory risk assessment and enhancement of regulatory reporting by insurers are limited, which compromises effective off-site supervision, macroprudential analysis, and publication of aggregate information on the market.
- The Reserve Bank of New Zealand should focus in regulation and supervisory work on setting standards on corporate governance, risk management, and internal controls.
- The Reserve Bank of New Zealand should assess risk in these areas to promote the effectiveness of insurers’ governance.
Key thematic gaps identified
- Limited supervisory risk assessment.
- Insufficient enhancement of regulatory reporting by insurers.
- Constraints on effective off-site supervision.
- Impediments to macroprudential analysis.
- Weaknesses in publication of aggregate information on the market.
- Need for stronger standards and supervisory focus on corporate governance, risk management, and internal controls.
Policy recommendations
- Focus regulation and supervisory work on setting standards on corporate governance, risk management, and internal controls.
- Assess risk in corporate governance, risk management, and internal controls to promote the effectiveness of insurers’ governance.
- Enhance regulatory reporting by insurers to support effective off-site supervision, macroprudential analysis, and publication of aggregate market information.
Subject coverage and keywords
- Subject: Anti-money laundering and combating the financing of terrorism (AML/CFT), Crime, Financial institutions, Financial sector policy and analysis, Financial statements, Insurance, Insurance companies, Public financial management (PFM), Solvency
- Keywords: Anti-money laundering and combating the financing of terrorism (AML/CFT), Australia and New Zealand, CR, Financial statements, Insurance, insurance broker, Insurance companies, insurance sector, ISCR, life insurance, life insurer, risk management, Solvency, solvency standard
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- Country Report