Central bank mulls introducing solvency buffers for insurers

The Reserve Bank of New Zealand said that it is considering ordering insurers to maintain solvency buffers above their minimum solvency capital requirements to improve their resilience to financial shocks, Interest.co.nz reported. Analysts at Australia-based Macquarie Asset Management Inc. said that the increased solvency requirements could drive out some foreign-based general insurers from the country's insurance market.

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