Part 1 Preliminary provisions

Purposes and principles

3 Purposes

(1)

The purposes of this Act are to—

(a)

promote the maintenance of a sound and efficient insurance sector; and

(b)

promote public confidence in the insurance sector.

(2)

Those purposes are achieved by—

(a)

establishing a system for licensing insurers; and

(b)

imposing prudential requirements on insurers; and

(c)

providing for the supervision by the Reserve Bank of New Zealand (the Bank) of compliance with those requirements; and

(d)

conferring certain powers on the Bank to act in respect of insurers in financial distress or other difficulties.