New Zealand's central bank amends solvency standard for insurance firms

Credit: REUTERS/Rebecca Howard

May 31 (Reuters) - The Reserve Bank of New Zealand said on Tuesday it is amending its insurance interim solvency standard as it seeks to strengthen the capital positions of the country's insurance companies.

The central bank said it expects to finalise the standard by September, after receiving further feedback from interested parties.

The bank, which conducted a quantitative impact assessment on insurers related to the insolvency standards over 2020 and 2021, said it would be conduct a second assessment, in which insurers may elect to voluntarily participate.

The insolvency standard lays out minimum capital requirements for insurance companies to ensure they maintain sufficient funds to meet their obligations to policyholders.

(Reporting by Harshita Swaminathan; editing by Richard Pullin)


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