IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Insurer solvency standards – reducing risk in a risk business

Listed author(s):
Registered author(s):

    Significant earthquakes in Christchurch have brought the need for stability in the New Zealand insurance market into sharp focus. The ability of insurance companies to meet claims as they fall due has tremendous potential impact in such circumstances and the need for insurers to hold sufficient capital and other resources for those purposes is more visible in such difficult times. Whether in terms of meeting household claims or those for large businesses, insurance companies have a crucial role to play in rebuilding the lives, communities and economies of those affected. Given the significant potential impact of financial weakness in the insurance sector, regulation of insurers’ financial strength helps to maintain confidence in the sector (a key objective of our prudential role). The Reserve Bank seeks to ensure financial strength by applying solvency standards to insurers carrying on business in New Zealand and these differ depending on the type of insurer. The key components in assessing the fina ncial stability of an insurer are its solvency, capital adequacy and liquidity.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Article provided by Reserve Bank of New Zealand in its journal Reserve Bank of New Zealand Bulletin.

    Volume (Year): 74 (2011)
    Issue (Month): (December)
    Pages: 1-6

    in new window

    Handle: RePEc:nzb:nzbbul:dec2011:2
    Contact details of provider: Postal:
    P.O. Box 2498, Wellington

    Phone: 64 4 471-3767
    Fax: 64 4 471-2270
    Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:nzb:nzbbul:dec2011:2. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Reserve Bank of New Zealand Knowledge Centre)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.