The Reserve Bank of New Zealand (RBNZ) has opened consultation on an exposure draft of a Bill that will amend the Insurance (Prudential Supervision) Act 2010 (IPSA).
According to a media release by the RBNZ, Director of Prudential Policy Jess Rowe said, “We are seeking technical feedback on the Bill to help ensure the changes work in practice and deliver the policy decisions made by the Cabinet last year. It will also help us identify and avoid unintended consequences and regulatory gaps.
“Insurance plays a key role in many of New Zealanders’ biggest financial decisions. That’s why a sound and efficient insurance sector matters to everyone, and New Zealanders need to have confidence in the sector,” said Ms Rowe.
The Bill is intended to modernise insurance regulation in New Zealand and bring it closer to international practice. The draft Bill seeks to enhance how the RBNZ regulates insurers, including a move to a clearer and more transparent rules-based approach by expanding the range of standards that the RBNZ issues, helping keep the sector sound – now and into the future.
Ms Rowe said, “The Bill will support the Reserve Bank to be a more transparent, risk-based, and proactive regulator.
“A strong regulatory environment must be both sound and efficient. The Bill introduces a proportionality principle into IPSA, requiring us to publish a framework showing how regulation is tailored to the size and nature of different insurers. This complements existing Reserve Bank obligations, including considering the impact of our decisions on competition in the insurance sector,” she said.
Consultation is open for a period of 12 weeks. Submissions can be mailed to ipsareview@rbnz.govt.nz by 5pm on 7 July 2026. The Bill is expected to be introduced to the House of Representatives in 2027.