Adrian Orr: Building confidence and reducing risks in the insurance sector

Speech by Mr Adrian Orr, Governor of the Reserve Bank of New Zealand, at the Insurance Council of New Zealand Conference, Auckland, 5 November 2019.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Tēnā koutou katoa

My thanks to the Insurance Council for inviting me to speak with you this morning. It is a pleasure and privilege to be here.

In the almost-decade since Parliament passed the Insurance Act in 2010, the insurance industry has had to deal with the consequences of many 'uninvited guests'. The Christchurch and Kaikoura earthquakes presented unique ongoing challenges to the industry. So too have other single-firm specific events, such as the failure and liquidation of CBL Insurance.

Furthermore, the findings from the Australian Royal Commission and our recent Conduct & Culture Review - jointly undertaken with the Financial Markets Authority (FMA) - demonstrate the need for ongoing constructive change across the sector.

I am going to share with you today the Reserve Bank's perspectives on some of these events, and about the future direction of our insurance policy and supervision work - including some of the initiatives that we will seek your feedback on in due course.

Our desire is to ensure that the insurance sector is financially sound and trusted. We must be in our best 'Sunday clothes' all week long.