RBNZ plans to life company on-site inspections

The central bank wants "the power to carry out on-site inspections at insurers' premises, including, where necessary, without prior notice", the central bank said in a consultation paper.

The RBNZ became the prudential regulator of insurance companies when the Insurance (Prudential Supervision) Act (IPSA) was passed in 2011 but that law only allows it to physically inspect an insurance company with that company's consent.

The ability to demand information from businesses that aren't licensed insurers is also being sought, to make it easier to ensure that insurance isn't being provided inappropriately.

Cabinet has already approved giving the prudential regulator the power of compulsory on-site inspections of banks, which will be included in the proposed Deposit Takers Act. Consultation on the first draft of that bill closed last month ahead of its introduction into parliament.