RBNZ seeks feedback on compulsory inspections and insurance enforcement

The central bank is requesting feedback on the possibility of introducing compulsory on-site inspection powers at insurers premises, including where necessary without prior notice.

The consultation is the third of five and will form part of the RBNZ’s review of the Insurance (Prudential Supervision) Act.

It also discusses introducing a breach-reporting system, where insurers are required to monitor their own regulatory compliance and communicate breaches to The Reserve Bank.

“A well-designed enforcement framework should provide a range of credible responses to compliance problems so we can respond in a way that is proportional to the issue we’re addressing,” deputy governor Christian Hawkesby said.