RBNZ Deputy Governor Christian Hawkesby announced the completion of New Zealand's first stress test for life insurers.
The test evaluated resilience against hypothetical scenarios, including
- prolonged COVID effects,
- a new pandemic, and
- severe economic stress.
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.
The stress test showed that there is no stress. Move forward with no worry (famous last words).
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