Committee News

Life and General Insurance Committees

The Life and General Insurance Committees are currently working to update the professional standards for Financial Condition Reports (FCRs) to reflect the changes in the accounting and solvency standards.

Over the next year the majority of FCRs will still be completed using IFRS4 and the relevant Solvency Standard issued in December 2014, however it is possible that due to mergers/changes in balance dates etc some entities may need to report under IFRS17 and the Interim Solvency Standard.  To accommodate this the committees are looking to do an initial update to the existing standards using generic terms that can reference the specific items under either scenario.  It is hoped these standards will be issued by the end of March 2023.

More substantive changes to more fully align with the new regime will be worked on over the balance of the 2023 calendar year. Consideration of overseas equivalent standards suggest there is a move to being less prescriptive and more principles based.  This results in less of the detailed requirements from the Solvency Standards being referenced directly in the Professional Standard. In some jurisdictions there is no longer a specific standard for the FCR (or equivalent) with reliance being placed on a generic report writing standard and any specific legislation.  These matters and the option of combining the two FCR standards will be considered as part of this more comprehensive review.  Consultation with the membership will be undertaken before this standard is finalised. Any thoughts or feedback can be provided via the committees.

Members are reminded that they need to comply with applicable legislation and the RBNZ solvency standard at all times. If there is any conflict between the Professional Standard and the law, regulations or supervisory standards, the provisions of the law, regulation or RBNZ standard will take precedence.