Deputy Governor Christian Hawkesby has reinforced the Reserve Bank of New Zealand's commitment to ensuring a resilient, efficient, innovative and transparent insurance sector, speaking at the Insurance Council of New Zealand's conference today.
"The insurance industry is not just a key pillar of our financial system; it is fundamental to our society by enabling risk to be spread, transferred and shared. Its success relies on trust and confidence that comes with transparency, ensuring that consumers have the right coverage and that insurers can meet their obligations when needed," Mr Hawkesby said.
New Zealand's insurance landscape presents distinct challenges, with its complex composition of participants - retail and wholesale players, foreign parents, global reinsurers, government providers - and New Zealand's unique risks - seismic activity, volcanic threats, and the increasing impact of climate change.
Meeting these challenges also requires a stable and sound financial system, underpinned by a modern and fit for purpose regulatory regime. The review of the Insurance Prudential Supervision Act (IPSA) is aimed at bringing about this modernisation.
It also requires all participants to take a system view and the necessity for a collaborative approach and leadership from across the industry. The CoFR1 insurance forum is an opportunity to support this leadership and for regulators to share and collaborate with the industry.
The Reserve Bank remains dedicated to enhancing engagement with the industry, modernising its regulatory framework and approach, and embedding deeper insurance expertise within its leadership.
"We recognise that there is more work to do. However, our commitment to working collaboratively with industry leaders ensures that the insurance sector continues to play a vital role in a productive and sustainable economy," Mr Hawkesby said.
1 The Council of Financial Regulators (CoFR), includes the Financial Markets Authority, Treasury, Commerce Commission, and Ministry of Business, Innovation and Employment.
