trend towards risk - based pricing. rather, our involvement has been to better understand what is going on, and to consider its impacts on soundness and efficiency. in its ongoing review of the reserve bank act4, the government has made an in - principle decision to change the current objective of that act from ‘ soundness and efficiency ’ to ‘ protecting and promoting financial stability ’. the implications of any changes to the high - level policy objectives of the reserve bank act will need to be 4 https : / / www. rbnz. govt. nz / news / 2020 / 07 / introduction - of - bill - marks - exciting - new - phase - for - te - putea - matua considered by the ipsa review, along with other outcomes from the reserve bank act review. what is happening with the ipsa review and why a policy paper outlining the resumption of the ipsa review will be published in early october. it will provide an updated overview explaining objectives, topics to be covered and an indicative timetable. we ’ ll be staying in regular communication with our industry stakeholders as this work progresses, building on earlier consultation feedback. alongside the ipsa review document, we will also release a consultation paper on principles to guide the review of solvency standards. we recognise that you are dealing with a busy regulatory environment so it is important that we progress the ipsa review with a mind - set that focuses on improving prudential regulation, not re - inventing features of the framework that appear to be working well. the starting point is that we have a regime that is not broken, but has been significantly tested in its relatively short lifetime, and lessons can be learned and applied to improvements. your feedback will be crucial to helping us shape the regime in an efficient and effective matter. the reasons for enacting ipsa have not changed, but what has changed is the experience on which further refinements can be considered. since 2010, the reserve bank and insurers have gained considerable experience across the legislation, helping us to see what works well and what could be enhanced. there has been a high level of activity in relation to transfers of business between insurers, changes of control and insurers entering or exiting the market. the amp / resolution life transaction is a notable example. ipsa powers have also been used in relation to solvency - level settings for some insurers, as well as in other areas such as risk management. the canterbury earthquakes, which

##ilised. the beginning of the end … succeeding sustainably i have already said that it is hard to think of a more complicated economic scenario for policymakers globally – the scale, duration, and relative impact on demand and supply from the covid - 19 pandemic. the health - driven nature of the economic challenge means there remains more downside risk to the economic outlook, prompted by uncertainty and caution. likewise, i have highlighted that monetary and financial stability are necessary to economic success, but far from sufficient especially in times of pandemic. as appropriate, starring in the times of covid - 19 are health, fiscal, and regulatory policy responses. globally, health outcomes are key to driving business and household confidence levels in the long - term. monetary policy may not be the lead role, but it is playing an important support role. the reserve bank cannot just step aside and say ‘ sorry, not our patient ’. we have a clear mandate to provide our economy its best chance of thriving. covid - 19 and the reserve bank ’ s balance sheet, 20 august 2012, speech by christian hawkesby https : / / www. rbnz. govt. nz / research - and - publications / speeches / 2020 / speech2020 - 08 - 20 6 monetary policy statement august 2020 : https : / / www. rbnz. govt. nz / / media / reservebank / files / publications / monetary % 20policy % 20statements / 2020 / mpsaug2020. pdf? r evision = 3ca8a4de - 673e - 41d5 - bff6 - 408f0198ad09 the monetary policy committee stepped up to this challenge as recently as our august monetary policy statement, announcing an immediate easing in monetary conditions and outlining policy options ahead. the policy tools that we ’ ve used to date and the additional tools that we are considering using as a package in the near future are not new to central banking. the instruments include various forms of negative wholesale interest rates, further quantitative easing using large scale purchases of domestic and foreign assets, direct lending to banks, and forward guidance as to what needs to be done under certain conditions. however, we acknowledge that these tools are technical and unfamiliar to most new zealanders. we recognise we have an ongoing communications challenge to ensure people remain confident in our intentions and actions. table 1 : principles for using monetary policy7 decisions the monetary policy committee makes regarding the use of policy tools