Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Insurance sector must evolve in line with changing risks

Insurance sector must evolve in line with increased public expectations and changing risks

05 November 2019


Building public confidence in the insurance sector requires more effort from all industry participants, Reserve Bank of New Zealand Governor Adrian Orr said in a speech to the Insurance Council of New Zealand today.


Through the Insurance (Prudential Supervision) Act, the Reserve Bank is tasked with maintaining industry soundness and public confidence in the insurance sector.

Mr Orr says “The insurance sector is part of the ecosystem that society relies heavily on to both mitigate risks and/or transfer the risk-burden to those best able to manage it.”

Insurers need to manage the evolving risks facing the sector. For example, climate change is leading to more frequent insurance events. Likewise, advances in science and technology are providing more data and insight for insurance risk-pricing. And, public expectations of what constitutes good conduct and culture have sharpened - alongside the recent regulator reviews that highlighted significant shortcomings.

Now is the time for the insurance sector to review and improve their conduct and culture, and innovate in their business models. The insurance sector must use high-quality risk management capability to support their business decisions and risk-pricing. This is an important foundation for a sound insurance sector. Likewise, the Reserve Bank will monitor the sector’s risk management to ensure the industry provides appropriate outcomes for society as a whole.

“The public is demanding that both insurers and regulators play their part in providing greater confidence in the insurance sector. The Reserve Bank will prioritise insurance policy and supervision reviews in 2020 and beyond, and enable individuals and firms to actively participate in shaping the industry’s future.”

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Primary Sector Council Report: Vision To Unite The Primary Sector Launched

Agriculture Minister Damien O’Connor has welcomed the release of a bold new vision for the country’s vital food and fibre sector. More>>

ALSO:

Crown Accounts: Treasury HYEFU Sees Deficit Then Rising Surpluses

An operating balance before gains and losses deficit of $0.9 billion is forecast in the current year, before returning to a small surplus in 2020/21 which then grows to reach $5.9 billion (1.5% of GDP) in 2023/24. More>>

ALSO:

Fuels Rushing In: Govt "Ready To Act" On Petrol Market Report

The Government will now take the Commerce Commission’s recommendations to Cabinet...
• A more transparent wholesale pricing regime • Greater contractual freedoms and fairer terms • Introducing an enforceable industry code of conduct • Improve transparency of premium grade fuel pricing... More>>

ALSO:

Reserve Bank Capital Review Decision: Increased Bank Capital Requirements

Governor Adrian Orr said the decisions to increase capital requirements are about making the banking system safer for all New Zealanders, and will ensure bank owners have a meaningful stake in their businesses. More>>

ALSO: