BRIEF-RBNZ Says General Insurance Stress Test Shows Industry Reliance On Offshore Reinsurance Providers

Reserve Bank of New Zealand: * GENERAL INSURANCE INDUSTRY STRESS TEST FROM RBNZ HAS HIGHLIGHTED INDUSTRY'S RELIANCE ON OFFSHORE REINSURANCE PROVIDERS

* STRESS TEST SHOWS INCREASES IN INTENSITY AND/OR FREQUENCY OF WEATHER EVENTS LEAD TO LOWER PROFITABILITY AND DIVIDEND PAYMENTS FOR INSURERS * GIIST INVOLVED FIVE LARGEST NEW ZEALAND INCORPORATED GENERAL INSURERS - REPRESENTING AROUND 70% OF SECTOR

* PHYSICAL AND TRANSITION RISKS FROM CLIMATE CHANGE WILL BE A FOCUS OF OUR INDUSTRY STRESS TESTING OVER COMING YEARS * IF INTENSITY AND/OR FREQUENCY OF WEATHER EVENTS IS SUSTAINED, THIS COULD LEAD TO HIGHER PREMIUMS IN THE FUTURE Source: https://bit.ly/3nAlbK1 Further company coverage:

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