Wellington, Sep 27 (IANS): The Reserve Bank of New Zealand (RBNZ) has launched the final policy consultation on the review of the Insurance (Prudential Supervision) Act 2010 (IPSA).

This omnibus consultation sets out a full set of proposals for amending the legislation. It is based on feedback from earlier consultations and is the final policy consultation for the IPSA review, reports Xinhua news agency.

RBNZ Deputy Governor Christian Hawkesby said the Reserve Bank's prudential supervision of insurance promotes a sound and efficient insurance sector in New Zealand and promotes public confidence in the sector.

"The proposed changes will support the Reserve Bank's evolution from light touch supervision toward a more proactive and intensive approach that is more closely aligned with international best practices," Hawkesby said.

The proposals will give us an expanded set of supervisory and enforcement tools, which will enable a more graduated and proportionate set of responses, ranging from remedial action to address risks through to robust enforcement measures for serious breaches, he said.

"We will be able to set out clearer and more enforceable rules in areas such as governance and risk management, making us better equipped to address emerging issues such as cybersecurity and climate," Hawkesby said.

Once the policy is finalized, the RBNZ will consult on an exposure draft of an IPSA Amendment Bill, which is likely to commence in early 2025, he said.