The Law commission reviewed the framework for the regulation of life insurers and life insurance products in New Zealand.
Terms of reference
The Law Commission will consider and report on the framework for regulation and supervision of life insurers and life insurance products in New Zealand and the most appropriate way to regulate the provision of life insurance in New Zealand. In particular it will:
- Identify the problems that arise out of the unique nature of life insurance and require regulation, the position of life insurance in New Zealand and the aims of regulation;
- Given CER, the unique characteristics of the New Zealand market and the significant input of overseas, particularly Australian, insurers into that market, assess how New Zealand regulation could best accommodate overseas regulation and overseas insurers in order to meet its aims;
- Research current global trends, best international practice and the regulatory regimes applicable in Australia and other similar jurisdictions. This will include an analysis of their aims, a review of their advantages and disadvantages, and an assessment of which characteristics of these regimes would be suitable for New Zealand;
- Identify possible regulatory interventions to address the problems identified and achieve the aims sought;
- Assess the costs and benefits of each intervention and what aims it would meet; and
- Consider whether the approach taken to the regulation of life insurers and life insurance products has implications for the regulation of other insurers and insurance products.
Life Insurance – A Discussion Paper (NZLC PP53, 2003)
The Commission's Preliminary Paper, Life Insurance - A Discussion Paper (NZLC PP53, 2003) sets out New Zealand’s current system of life insurance regulation, as well as regulation in Australia, UK and other jurisdictions, and international principles that have been developed.
Life Insurance (NZLC R87, 2004)
The Commission's Report, Life Insurance (NZLC R87, 2004) contains the Commission’s recommendations as to the framework for the regulation of life insurers and life insurance products in New Zealand.
The Commission’s report formed part of the Ministry of Economic Development and the Reserve Bank ‘Review of Regulation of Financial Products and Providers’ 2008, and some of the Commission’s recommendations were incorporated into the Insurance (Prudential Supervision) Act 2010.
There was no requirement for the Government to present a formal response to Commission reports before April 2009.