Legal and regulatory update for the life and health insurance sector

11 Dec 2023 - The Reserve Bank of New Zealand publish an Analytical Note, looking at how New Zealand households’ inflation expectations respond to changing prices - what inflation is now and how that shapes what people think it will be in future. The Note found that household inflation expectations are more sensitive to inflation when it goes above 2 to 2.5 percent.  https://www.rbnz.govt.nz/hub/news/2023/12/households-tend-to-pay-more-attention-to-inflation-when-it-is-high

12 Dec 2023 - The Reserve Bank of New Zealand have published the annual updated weights for the Trade Weighted Index  https://www.rbnz.govt.nz/hub/news/2023/12/updated-weights-for-trade-weighted-index

12 Dec 2023 - APRA  has released updated requirements for banks to better manage the impact of interest rate changes on their financial position. In a response to its November 2022 consultation released today, APRA has updated its revisions to Prudential Standard APS 117 Interest Rate Risk in the Banking book (IRRBB) aimed at:

• reducing some of the volatility in the IRRBB capital charge;

•  creating better incentives for banks to manage their IRRBB risk, including raising standards of governance and measurement of risk; and

•  simplifying and removing complexities in the IRRBB framework.

https://www.apra.gov.au/news-and-publications/apra-moves-to-reinforce-requirements-for-banks-to-manage-interest-rate-risk

13 Dec 2023 - Reserve Bank of New Zealand (Economic Objective) Amendment Bill  has gone to Committee of Whole House https://bills.parliament.nz/v/6/c2a1d856-adc2-4b6a-19e5-08dbfadead1f?Tab=history