Deputy Governor Christian Hawkesby says stress tests assess how the finance sector can cope with hypothetical scenarios that are severe, but plausible. Previous stress tests have involved banks or general insurance providers, but this is our inaugural stress test for life insurers. Stress tests assess entities' resilience by demonstrating whether they have enough capital to withstand extreme shocks. They also indicate potential impacts on the broader financial system. "This is the first time we have run a stress test with New Zealand's life insurance industry and the results were reassuring.

https://www.miragenews.com/rbnz-stress-test-confirms-life-insurers-shock-1061434/

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