"We're seeking technical feedback on the Bill to help ensure the changes work in practice and deliver the policy decisions made by Cabinet last year," says Jess Rowe, Director of Prudential Policy.
"It will also help us identify and avoid unintended consequences and regulatory gaps.
"Insurance plays a key role in many of New Zealanders' biggest financial decisions. That's why a sound and efficient insurance sector matters to everyone, and New Zealanders need to have confidence in the sector," says Ms Rowe.
The Bill is intended to modernise insurance regulation in New Zealand and bring it closer to international practice.
Ms Rowe says the draft Bill seeks to enhance how we regulate insurers, including a move to a clearer and more transparent rules-based approach by expanding the range of standards that we issue, helping keep the sector sound - now and into the future.
"The Bill will support the Reserve Bank to be a more transparent, risk-based, and proactive regulator.
"A strong regulatory environment must be both sound and efficient. The Bill introduces a proportionality principle into IPSA, requiring us to publish a framework showing how regulation is tailored to the size and nature of different insurers. This complements existing Reserve Bank obligations, including considering the impact of our decisions on competition in the insurance sector," she says.
Consultation is open for an extended period of 12 weeks, closing on 7 July. The Bill is expected to be introduced to the House of Representatives in 2027.
More information
Exposure draft Insurance (Prudential Supervision) Amendment Bill (PDF, 644KB)
Consultation paper: IPSA Exposure Draft 2026 (PDF, 609KB)
Cabinet's August 2025 Policy decisions: Cabinet Paper - Modernising the Insurance Prudential Supervision Act 2010 (PDF, 186KB)
Review of the Insurance (Prudential Supervision) Act 2010
