RBNZ stress test results for insurers show there is no stress

<p>RBNZ Deputy Governor Christian Hawkesby announced the completion of New Zealand's first stress test for life insurers. </p><p>The test evaluated resilience against hypothetical scenarios, including </p><ul><li>prolonged COVID effects, </li><li>a new pandemic, and </li><li>severe economic stress. </li></ul><p>Results were reassuring, with insurers demonstrating the ability to manage large claims while remaining solvent. The five largest insurers participated, representing 75% of the market share. Hawkesby commended the process, identifying it as vital for risk management, and announced plans for the next stress test in 2024.</p><p>The stress test showed that there is no stress. Move forward with no worry (famous last words). </p><p><a href="https://www.rbnz.govt.nz/hub/news/2023/08/first-rbnz-stress-test-shows-life-insurers-well-placed-to-withstand-severe-shocks" target="_blank" rel="nofollow">CLICK HERE</a> for the report.</p>

This article was written by Greg Michalowski at www.forexlive.com.