The IMF Mission was favourably impressed by our initiative to publish our own bank ratings – the so-called CAMEL Ratings. The acronym CAMEL is straightforward: C stands for Capital Adequacy, A for Asset Quality, M for Management, E for Earnings and L for Liquidity. The CAMEL framework is a much better grid for the analysis of banks from a comparative perspective.
In the almost-decade since Parliament passed the Insurance Act in 20101, the insurance industry has had to deal with the consequences of many ‘uninvited guests’. The Christchurch and Kaikoura earthquakes presented unique ongoing challenges to the industry. So too have other single-firmspecific events, such as the failure and liquidation of CBL Insurance.