Time running out for life companies to get licenced

The Reserve Bank, which has the new role of supervising insurance companies says there are only three weeks left until the licensing deadling is reached.

While all life companies have a provisional licence they will need a full one by September 9 to continue opearting. According to the most recent list from the bank six life companies are yet to secure their full licences. These are AIA, AMP Life, Partners Life, National Mutual Life, TOWER Health and Life and TOWER Life.

Reserve Bank manager insurance oversight, Peter Brady, says the bank is working to complete assessment of applications where all the requested information has been provided before the deadline. 

"From 9 September 2013 it will be an offence to carry on insurance business in New Zealand, as defined in section 8 of the Insurance (Prudential Supervision) Act 2010, without a licence," he says in RBNZ newsletter. "Carrying on insurance business in New Zealand after this date without holding a licence is an offence which could be subject to a fine of up to $1,000,000."