Enactment of the Insurance (Prudential Supervision) Bill

Editor's Note: This is an important letter from Richard Dean, Manager, Insurance Policy, Reserve Bank of New Zealand. Captive.com is grateful to Peter Lowe, hailing from the New Zealand Captive Insurance Association (NzCIA) and Willis, for passing this information on to us.

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I am pleased to advise that the Insurance (Prudential Supervision) Bill 2009 moved through its committee stage and third reading, and was passed by Parliament, on 26 August 2010. It will shortly receive Royal Assent and be passed into law as the Insurance (Prudential Supervision) Act 2010.

Although the Bill has been passed approximately 5 weeks ahead of its anticipated target date, the key dates in the licensing process are intended to remain as originally indicated in recent presentations. An Order in Council will be prepared to reflect these intended dates, as follows:

Clause 233(b), relating to the date by which existing insurers must notify the Bank whether or not they intend to continue to carry on insurance business in New Zealand following enactment of the legislation, will continue to be tied to 31 December 2010.

Clause 14 (1), the requirement that persons that carry on insurance business in New Zealand must be licensed, will come into effect on 31 March 2012.

Clause 235 (1)(c), relating to the date by which all provisional licences shall expire, will be set to 30 September 2013.

The Reserve Bank will shortly begin the process of contacting all existing insurers in respect of their intention or otherwise to continue to carry on insurance business in New Zealand .

I would like to thank all stakeholders that have contributed to the delivery of this new legislation for the New Zealand insurance sector.

Richard Dean
Manager, Insurance Policy
Reserve Bank of New Zealand
04 4713711
021 943180

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