Reserve Bank of New Zealand deputy governor Christian Hawkesby says the insurance industry is a “key pillar” of the financial system as he outlines the regulator’s expectations of insurers.

The regulator is committed to engaging with the industry and modernising its regulatory framework, he said in a speech last week at the Insurance Council of New Zealand conference. 

“We recognise that there is more work to do,” he said. “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.” 

He says the review of the Insurance Prudential Supervision Act (IPSA) is part of efforts to ensure the regulatory regime is fit-for-purpose to meet the risk challenges facing New Zealand. 

“The insurance industry is not just a key pillar of our financial system,” Mr Hawkesby said. “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.”