Insurance makes an important contribution to New Zealanders’ financial and economic wellbeing, by spreading the cost of adverse events across time and policyholders, Reserve Bank Director of Financial Stability Assessment & Strategy Kerry Watt says. Residential dwellings and land account for a majority of New Zealand households’ net worth. At around 96%, uptake of residential insurance is high by international standards. Premiums for residential insurance have significantly outstripped general inflation over the past decade, reflecting both elevated construction cost inflation, and also higher reinsurance costs, as ... (full story)