New Zealand Insurance Industry – Governance, Risk and Compliance

The New Zealand insurance industry report provides a detailed analysis of the insurance regulations for life, property, motor, liability, personal accident and health, and marine, aviation and transit insurance. The report specifies various requirements for the establishment and operation of insurance and reinsurance companies and intermediaries. It gives insurers access to information on prevailing insurance regulations, and recent and upcoming changes in the regulatory framework, taxation and legal system in the country. The report also includes the scope of non-admitted insurance in the country.

What are the market dynamics in the New Zealand insurance industry?

Reserve Bank of New Zealand (RBNZ) is the main regulator in the New Zealand insurance industry. It was established in 1934. Since 1936, the government of New Zealand has wholly owned the bank which functions as New Zealand’s central bank. Its main aim is to promote a sound and dynamic monetary and financial system in the country. They also issue licenses to insurers, take appropriate action in respect of licensed insurers as well as undertake prudential supervision of licensed insurers.

What are the different types of licenses issued in the New Zealand insurance industry?

The three types of insurance licenses issued to companies in the New Zealand insurance industry are insurance, reinsurance, and intermediaries. 

Insurance license for companies in the New Zealand insurance industry

Insurers or insurance carriers are businesses that underwrite various types of insurance contracts. These companies, generally known as insurance companies, provide insurance products besides promoting and selling insurance contracts to consumers. In New Zealand, insurance companies can obtain a license for either life or non-life insurance business. Under the license of life insurance, companies can provide a contract of insurance for the payment of money on the death of a person or the happening of a contingency dependent on the termination or continuance of human life.

Reinsurance license for companies in the New Zealand insurance industry

An individual or company must obtain authorization to carry out a reinsurance business in the country. Reinsurers sell insurance policies to other insurance companies and protect them from unexpected financial losses.

License for insurance intermediaries in the New Zealand insurance industry

Intermediaries that act on behalf of insurance companies also need to gain authorization to carry out activities in the country. Insurance intermediaries, which include insurance agents, actuaries, insurance brokers, loss and damage adjusters, and insurance consultants, are the retail side of the insurance industry and act as mediators between the insurer and the insured. An intermediary, sells, solicits and negotiates insurance contracts with customers on behalf of insurance companies for compensation. Intermediaries also counsel customers and provide advice on various insurance products. Insurance and reinsurance intermediaries must be authorized to carry out activities of insurance mediation in New Zealand.

Which other bodies oversee the New Zealand insurance industry?

The key bodies overseeing the New Zealand insurance industry market are the International Association of Insurance Supervisors (IAIS) and the Insurance Council of New Zealand (ICNZ).

International Association of Insurance Supervisors

The IAIS, established in 1994, is a membership-driven global organization, which represents insurance regulators and supervisors of more than 200 jurisdictions. They formulate and issue various global insurance principles, standards, and guidance, provide training and support on issues related to insurance supervision and organize meetings and seminars for insurance supervisors. The IAIS also works closely with other financial sector standard-setting bodies and international organizations to promote financial stability.

Insurance Council of New Zealand

The ICNZ is an association of non-life insurers in New Zealand that represents general insurance companies on issues affecting the insurance industry. It was established in 1895 and is governed by a board of 10 members appointed every year at an annual general meeting. Non-life insurers operating in the country are members of the council. The main objective of the council is to build trust and confidence within people towards the insurance industry, inform and educate customers about key insurance issues and risks and assist council members in areas impacting their business. The ICNZ also promotes fair practice in the industry through the implementation of the Fair Insurance Code, which mandates insurers to act ethically.

New Zealand insurance industry, by association

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Market report scope

This report provides a detailed analysis of:

• The insurance regulatory framework in New Zealand.
• The rules and regulations governing insurance products and insurance entities.
• Key trends and developments pertaining to the country’s insurance regulatory framework.
• Rules and regulations pertaining to the establishment and operation of insurance businesses in the country.
• Taxation imposed on insurance products and insurance companies.

Reasons to Buy

• Provides FAQ-style analytical insights comprising 129 knowledge elements on insurance compliance applicable to the country.
• Gain insights into the insurance regulatory framework in New Zealand.
• Track the latest regulatory changes and expected changes impacting the New Zealand insurance industry.
• Gain detailed information about the key regulations governing the establishment and operation of insurance entities in the country.
• Understand key regulations and market practices pertaining to various types of insurance product.