RBNZ set to regulate insurance industry

The Reserve Bank of New Zealand on Monday became responsible for regulating all life, health and general insurance providers.

Alan Bollard, the governor of the central bank, said: "The insurance sector is an important part of the financial system, which underpins economic activity."

"Policyholders need to have confidence in insurance providers that insurance claims will be honoured," Bollard added. "While prudential supervision can never eliminate the possibility of failures within the sector,