Solvency standard
The minimum capital ratio NZ-licensed life insurers must maintain under RBNZ rules.
Definition
The RBNZ’s solvency standard defines the minimum capital each licensed insurer must hold relative to its liabilities, to ensure it can pay claims even under adverse scenarios. Insurers publish their solvency ratio in annual disclosure statements. Significantly above 100% means a buffer; below 100% triggers regulator intervention.
See also
- Reserve Bank of New Zealand (RBNZ) — The NZ prudential regulator for life insurers — sets the solvency rules and publishes financial-strength ratings.
- Insurance (Prudential Supervision) Act 2010 (IPSA) — The NZ Act under which all licensed insurers (including life insurers) are prudentially regulated.
Not personalised financial advice. Definitions are editorial framings of how the term is used across NZ life cover. Your specific policy wording is the authoritative source.