Prompted by the Royal Commission of Inquiry in Australia, New Zealand’s regulators undertook a study last year, looking at banks and life insurers’ behaviour.

The bank report found issues to address but no systemic problems.

But Reserve Bank governor Adrian Orr has said that life insurers should expect a tougher verdict.

He said with the release of the bank’s latest Financial Stability report in November that the industry would be foolish to be surprised by that.

That report highlighted life insurers' commission rates, showing Kiwi insurance companies paying commissions to advisers of about 20% of gross revenue were at a level almost double their nearest counterpart, Mexico, at just under 13%.

The United States was at about 5% of revenue and Australia just over 10%.

Financial Services Council Richard Klipin, whose organisation represents life insurers, said it was ready to engage constructively and positively with the FMA and Reserve Bank's review.

"While we do not want to pre-empt the report or speculate on specific recommendations, we expect it will provide a valuable chance to better understand how the industry is meeting the needs of its customers.

"The FMA and RBNZ have been clear over the past few months that there will be a number of issues for the industry to consider and address. Conduct, culture and ensuring great consumer outcomes is paramount and we saw some important first steps by the industry last year with the adoption of the FSC code of conduct across our membership, and tackling soft commissions head-on by stopping overseas incentive conferences. We expect that the report will highlight a numbers of areas where further action is required."

Industry commentator Russell Hutchinson said he expected to see the report address commission alongside other issues.

"I think that they will question the extent to which insurers ensure the suitability of their products for customers, whether they buy direct or through advisers – and there is a complex question of what constitutes ‘good conduct’ and how much that might reach up to over even overlap with ‘advice’.

"Wider questions about value will be asked – given the criticism of sales of products with low claims rates in Australia. We don’t have very many of those products, but some lower-value products may be questioned."

Klipin said the regulators had been thorough and should be commended for their process.

"We look forward to receiving the report and responding constructively and with appropriate urgency to its recommendations."