The Reserve Bank of New Zealand has released a consultation paper on proposed changes to insurance prudential legislation.

It says the Insurance (Prudential Supervision) Amendment Bill aims to modernise insurance regulation in New Zealand and bring it closer to international practice.

The central bank launched the consultation after a review of the legislation.

One of the review recommendations is against requiring non-operating holding companies to be licensed, and another calls for pausing any changes to the way multicell captive insurers are regulated.

Consultation closes on July 7. See details here.