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Peter Lowe

Captive insurance regulations could unregulate industry

New insurance legislation could create an unregulated captive insurance industry in New Zealand, the New Zealand Captive Insurance Association says

The Insurance (Prudential Supervision) Bill, due for its first hearing in Parliament today, would allow foreign companies setting up insurance subsidiaries in New Zealand to go unregulated.

A captive insurance company is designed to underwrite the risks of its parent corporation only.