Insurance (Prudential Supervision) Act 2010

If you need more information about this Act, please contact the administering agency: Reserve Bank of New Zealand
4 Principles to be taken into account under this Act

In achieving the purposes of this Act, the Bank must take into account the following principles that are relevant to the performance of functions or duties imposed, or the exercise of powers conferred, on the Bank by this Act:

(a)

the importance of insurance to members of the public in terms of their personal or business risk management:

(b)

the importance of maintaining the sustainability of the New Zealand insurance market:

(c)

the importance of dealing with an insurer in financial distress or other difficulties in a manner that aims to—

(i)

adequately protect the interests of its policyholders and the public interest; and

(ii)

ensure that any failure, or possible failure, of the insurer does not have the potential to significantly damage the financial system or the economy of New Zealand:

(d)

the importance of recognising—

(i)

that it is not a purpose of this Act to eliminate all risk of insurer failure; and

(ii)

that members of the public are responsible for their own decisions relating to insurance:

(e)

the desirability of providing to the public adequate information to enable members of the public to make those decisions:

(f)

the desirability of consistency in the treatment of similar institutions (while recognising that the New Zealand insurance market comprises a diversity of institutions):

(g)

the need to maintain competition within the insurance sector:

(h)

the need to avoid unnecessary compliance costs:

(i)

the desirability of sound governance of insurers:

(j)

the desirability of effective risk management by insurers.