Rebecca Sellers says conduct by insurers is effectively unregulated and the IMF is calling for some protection for consumers, at least up to Australian levels
Wednesday 17 May 17 3:33pm
Interest.co.nz: Conduct of business by insurers is in the spotlight.
The International Monetary Fund assessment of New Zealand’s financial sector (IMF Report) identified gaps in the regulation of insurance.
Recommendations include regulation of insurers’ conduct and that the Reserve Bank take a more intrusive approach to supervision. This would bring New Zealand’s regulation of insurance closer to the Australian approach.
If the response of previous governments to similar IMF reports is any guide, we can expect more attention from regulators to New Zealand’s insurers. This IMF Report recommends that the government and Financial Markets Authority (FMA) review the scope of conduct regulation for insurance, considering all aspects of the insurance product life cycle and develop a regulatory framework. Significant work is recommended to close gaps in the prudential supervision regime. More>