For insurers specifically, the RBNZ currently assesses the direct impact of the conflict as limited. The most notable developments are in health insurance, where carriers “have needed to raise premiums and adjust policies following several years of high claims costs, and this has improved solvency margins in the sector.” The central bank is also running a stress test of life and health insurers this year, which will examine resilience under adverse claims, asset, and economic conditions. The report provides an overview of general insurance coverage in New Zealand and its link to financial stability, including the role of catastrophe, property, and liability cover in supporting recovery, investment, and credit provision. It also outlines ongoing work to promote an “efficient and resilient banking system,” including more intensive supervision and the recent review of capital settings for deposit takers.
