Insurance (Prudential Supervision) Bill: The Issues To Consider When Making Submissions

The 22 June deadline for submissions to the Reserve Bank of New Zealand on the consultation draft of the above Bill is fast approaching.

Now is the time to voice any concerns. The Bill will be introduced into Parliament before the end of this year and is expected to be passed into law early next year. There is likely to be a two-year phase-in before it is fully in force.

In this update we set out some of the key issues for New Zealand insurers to consider when making submissions.

Should The Bill Define 'Insurance'?

Whether a financial service amounts to insurance is central to whether the service provider is caught by the Bill. There is only one court case in New Zealand that directly addresses this issue (Motor Cycle Specialists Limited v The Attorney-General (1988) 5 ANZ Insurance Cases 75,611) and it provides limited guidance.