This notice is given pursuant to section 236 of the Insurance (Prudential Supervision) Act 2010.

Notice

1. Title and Commencement

(1) This amendment standard may be cited as the Solvency Standard for Non-life Insurance Business 2014 (“Standard”) and comes into force on 23 November 2018.

(2) The Standard has the status of a disallowable instrument for the purposes of the Legislation Act 2012 and is issued under section 236 of the Insurance (Prudential Supervision) Act 2010.

2. Description

The Standard specifies the capital requirements for licensed insurers carrying on non-life insurance business, methods for calculating and reporting solvency and related matters of a licensed insurer, and disclosure of solvency related information. This amendment sets the treatment of right-of-use assets and lease liabilities arising under accounting standard NZ IFRS 16 Leases and minor editorial changes.

3. Availability

The Standard is available for inspection:

1. at the head office of the Reserve Bank of New Zealand, 2 The Terrace, Wellington; and
2. on the Reserve Bank of New Zealand’s website at https://www.rbnz.govt.nz/regulation-and-supervision/insurers/regulation/solvency-standards.

Dated this 23rd day of November 2018.

GEOFF BASCAND, Deputy Governor, Reserve Bank of New Zealand.