RBNZ may raise insurance firms’ solvency levels

The Reserve Bank of New Zealand is likely to raise the minimum solvency levels imposed on insurance companies, governor Adrian Orr said on November 5.

The RBNZ is launching a review of insurance firms’ solvency, Orr told a conference in Auckland.  

“It is too early to say whether or not our review will lead to the kind of uplift we have proposed for bank capital,” Orr said. “However, we do expect that the current ‘black line’ of a single regulatory minimum limit for solvency will be replaced