New Zealand: IAG wants foreign insurers to hold assets locally
Source: Asia Insurance Review | Jul 2017
New Zealand Regulation
New Zealand’s largest general insurer, IAG, wants overseas insurers with local business to be required to hold a certain amount of assets in the country.
The aim is to see policyholders better protected in the event of their insurer’s overseas parent turning insolvent.
IAG’s Senior Government and Stakeholder Relations Manager Bryce Davies said in an interview with interest.co.nz: “We think that needs to be looked at to make sure that, if you’re writing business in New Zealand, you’ve got the assets sitting behind you to actually deliver on those promises. And then making sure those assets are actually here and earmarked for New Zealanders.”
The Reserve Bank of New Zealand is currently in the process of consulting with stakeholders around how it should update the Insurance Prudential Supervision Act 2010. A