Insurance review likely to require more capital - RBNZ

Mon, 14 Sep 2020

The Reserve Bank is again signalling it is likely to require general and life insurance companies to hold more capital and is promising more intense supervision. "Over the years, we have observed a declining trend in solvency margins that may be illustrative of a key difference in approach between insurers and the prudential regulator," said deputy governor Geoff Bascand, who also heads the central bank's prudential functions. "Higher levels of capital make for a more resilient insurer but at the cost of lower return on equity," Bascand s...

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