Reserve Bank: Insurers' solvency standards under scrutiny

It released its latest Financial Stability Report on Wednesday, which showed that the New Zealand system was broadly sound, although some risks remained.

It considered the insurance sector, including life insurers specifically. The Reserve Bank regulates and supervises all New Zealand insurers. 

The report noted that life insurers' profit margins were high relative to international peers, and bancassurers and mature traditional businesses tended to have higher profits than those who distributed through advisers.

Despite that profitability, insurance solvency rates were dropping, the report said.