RBNZ: Reverse Stress Test Shows Insurer Resilience, Improved Risk Management

The signal here is the exercise itself: a reverse stress test asks what would have to go wrong to break a firm, so a clean result speaks to how much loss absorption the sector carries before capital is threatened. That matters most for policyholders and for the supervisor's credibility in judging insurer risk management. The disclosure is notably thin, though, with no scope, timing or named participants, which limits how much weight the conclusion can bear. Whether the RBNZ follows with the underlying detail is the open question.