by Susan Edmunds
The Reserve Bank is responsible for monitoring the sector under the Insurance (Prudential Supervision Act).
Insurers have to fill out regular information returns and a quarterly insurer survey.
But the Reserve Bank has warned that some are not meeting the expected standards.
“Generally insurers have been responsive to our feedback, and we are starting to see reasonable data quality from some insurers,” it said.
“However, there are some insurers with a particularly high error rate and/or are taking several weeks or longer to respond to our feedback.”
It said inaccurate data that was not corrected in a timely fashion had implications for the Reserve Bank’s supervision and would affect users of its published data, once it started to provide it.
“We are considering steps to encourage insurers to take more care in providing data that is both accurate and timely – for example we might issue public warnings to the worst insurers, or we might add a requirement for an auditor review of the Insurer Return at financial year end by notice under section 125. We also remind insurers that failure to comply with any requirements of the Bank under section 121 is an offence with insurers liable to potential fines.”
The Reserve Bank said it had postponed its proposal to regularly publish data because of the work needed to help insurers improve their data quality.
“We now anticipate consulting on regular publication in late 2016 or early 2017.”
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