insights from nz solvency returns for 2015 financial year · new zealand solvency analysis...
TRANSCRIPT
![Page 1: Insights from NZ solvency returns for 2015 financial year · New Zealand solvency analysis (solvency result) as reported adjusted for licence condition All 2,397.0 1,812.0 General](https://reader033.vdocuments.site/reader033/viewer/2022053119/609f621b2870bb11dc553cc5/html5/thumbnails/1.jpg)
NZSA Conference
November 2016
Robert Cole
Adrian Allott
Insights from NZ solvency
returns for 2015 financial year
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Insights from NZ solvency
returns for 2015 financial year
• Introduction
• New Zealand solvency
- requirements
- analysis
- feedback on common issues
- strength?
• Home jurisdiction solvency
• Conclusions
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Introduction
• No comment on RBNZ’s policy or
supervision responses
• No discussion of individual insurers
• Information as reported (despite some
issues)
• Mix of year end dates during 2015
• Lots more detail in the paper – please
read it!
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Introduction
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New Zealand solvency
requirements
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New Zealand solvency
analysis (solvency result)
as reported adjusted for
licence
condition
All 2,397.0 1,812.0
General 1,272.3 702.3
Life 684.2 669.2
Health 440.5 440.5
Solvency Margin ($ million)Main type
of
insurance
as reported adjusted for
licence
condition
177% 149%
214% 142%
136% 135%
490% 490%
Solvency Ratio (%)
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New Zealand solvency
analysis (effective requirement)
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New Zealand solvency
analysis (general insurers)
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New Zealand solvency
analysis (life insurers)
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New Zealand solvency
analysis (health insurers)
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New Zealand solvency
analysis (solvency ratio adjusted)
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New Zealand solvency
analysis (general insurers 2015)
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New Zealand solvency
analysis (life insurers 2015)
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New Zealand solvency
analysis (health insurers 2015)
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New Zealand solvency
analysis (capital target %)
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New Zealand solvency
analysis (actual vs target)
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New Zealand solvency
feedback on common issues
• Compliance with s121 requirements
- late, pdf, no sign-off, wrong version, email
• Completing incorrectly
- e.g. large insurer selecting small insurer
exemption, lack of comments, units, figures
in wrong boxes
• Applying solvency standards
- e.g. non-life cat. risk alternative method
• Solvency standard interpretation
- e.g. discretions, premium liabilities
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New Zealand solvency
strength?
Solvency Margin
Adjusted as % of Gross
Annual Premium
Solvency Margin
Adjusted as % of Net
Assets
All 23% 26%
General 14% 20%
Life 34% 23%
Health 40% 73%
Solvency Margin AdjustedMain type
of
insurance
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Home jurisdiction solvency
• Hard to directly compare (except
Australia)
• Australian solvency ratios slightly higher
than NZ?
• Some common issues
- compliance, currency, units, multiple
solvency requirements
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Home jurisdiction solvency
Australia
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Conclusions
• Considerations for insurers & actuaries
• Considerations for RBNZ
- policy
- supervision
- thematic review
- publication
• Invite insurers to follow up with RBNZ
• Questions?
• Thank you