Forex

RBNZ Accelerates IPSA Reforms, Targeting 2028 Implementation

Guavy AI Editorial Team Published September 24, 2026

Instruments

NZD

The Reserve Bank of New Zealand (RBNZ) is pushing forward with significant reforms to the Insurance (Prudential Supervision) Act (IPSA), aiming to implement them by 2028. The Exposure Draft for IPSA was released in April, and responses are due by August 28, 2026.

The proposed changes aim to transform New Zealand's 'light-touch' insurance regulatory regime into a more intensive, risk-based approach similar to those in the United Kingdom, European Union, and Australia.

Key changes include a new proportionality principle that considers an insurer's size, nature, and systemic importance. The RBNZ will also have power to issue standards on more than seven matters, including governance, solvency, risk management, disclosure of information, contingency and recovery plans, actuarial advice, and other areas.

The reforms also enhance enforcement powers by allowing the RBNZ to conduct onsite inspections without notice. A declaratory power is introduced, enabling the RBNZ to declare borderline products of insurance as 'contracts of insurance.'

RBNZ Accelerates IPSA Reforms, Targeting 2028 Implementation

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