Ken Research’s Governance,
Risk and Compliance- the New Zealand Insurance Industry provides an overview of the insurance regulatory framework in New
Zealand. It gives the latest key changes, and changes expected in the country's
insurance regulatory framework. The report provides key regulations and market
practices related to different types of insurance product in the country and
rules and regulations pertaining to key classes of compulsory insurance, and
the scope of non-admitted insurance in New Zealand. The key parameters
including licensing requirements, permitted foreign direct investment, minimum
capital requirements, solvency and reserve requirements, and investment
regulations and details of the tax and legal systems in the country are
detailed in the report. The
insurance market in New Zealand is focused on paying the claims of damages of
the Christchurch earthquakes of 2011. Even the New Zealand court continues to
hear cases on earthquake – related litigated claims. Many of the claims relate
to Policy interpretation of insuring clauses, Extensions
and exclusions, the interpretation of the statutory provisions underpinning the
cover provided by the Earthquake Commission (EQC) (a state-owned natural
disaster insurer) and a relatively new wave of litigated claims has emerged,
involving claims against insurers and construction professionals arising out of
allegedly inadequate repairs undertaken to Christchurch earthquake damaged
buildings. The effect of climate
change has hit New Zealand and has affected the insurance market, which proved
to be expensive for the insurers due to weather – related losses, especially in
2017. This trend is expected to continue due to the country’s population
concentrated in coastal areas. Insurers have adapted to the environmental
changes from offering indemnity – based natural disaster over to only sum-
insured policies.New Zealand insurance market continues to grow with many new
local and international entrants. This has led to new product lines from across
the spectrum with offshore backing from overseas insurers. There has been
innovation in the market in terms of new product lines, insurtech, environmental
liability and risk involved in the use of unmanned aerial vehicles.
The Reserve Bank of
New Zealand (RBNZ) is the regulatory body that regulates the insurers as under
Insurance Act of 2010, which lays the rules and framework to carry out insurance
business in New Zealand. This Act applies to every ‘person’ carrying out the
business in insurance- a company, association of persons. To carry out
insurance business, the person is required to obtain licence from the Reserve
Bank of New Zealand, which will be issued upon satisfying
certain conditions.
To know more,
click on the link below:
Related Report:-
+91-9015378249
