RBNZ 'doing its job'

Richard Klipin

In its latest Financial Stability Report, the Reserve Bank warned there were challenges ahead for insurers as low interest rates, minimum growth in premiums and higher rates of cancellation combined.

The RBNZ warned that some life insurers were operating with low solvency levels and buffers. It had conducted preliminary stress testing of insurers' exposure to a range of channels through which Covid-19 could affect them.

“We are continuing to work with insurers to see them build better resilience and maintain a strong focus on long-term customer outcomes.”

Naomi Ballantyne, managing director of Partners Life, said it was a general statement for an industry in which each company would have its own individual set of circumstances.