Charles Anderson, who joined the ASB Bank-owned company six months ago, said some countries had seen up to 40% of their workforce leave through new regulation but he did not believe it would be as bad here.
"I think it will be more like 20 to 30%. That could have a short-term effect on the market but the slack will be picked up quickly."
Mr Anderson should know.
He has worked for one of the world's largest life insurers, Aviva, managing a business which spanned from India to China to Singapore and Hong Kong.
This year is one of the biggest for the insurance sector - not only does it face tax increases on new life policies from July, all sales staff must get up to scratch to become registered financial advisers under new regulations due to come in by December.
Mr Anderson said it was not an ideal situation.
"Would we have liked to be dealing with both things ideally? Not really. But we have to accept that is what has happened."
Given the criticism financial services had faced over the past few years, anything that would increase the public's confidence in the industry had to be a good thing, he said.
But it would be a costly exercise.
Those in the market would have to spend more on complying with the new rules.
Last week, Sovereign announced plans to spend about $1 million on training its 1800 sales staff.
Mr Anderson estimated regulation changes would cost it $2 million to $3 million this year, which would mean profit growth was likely to be non-existent across the industry.
The tax changes to life insurance were also expected to hit the consumer in the pocket. Mr Anderson said it was an emotive issue for the public but in reality the cost increases were similar to the cost of a cup of coffee every week.
"We would have preferred not to have increased premiums. It's not great.
"We are mindful of affordability."
Despite knowing about the pressure on the industry, Mr Anderson was not fazed by the job, although he did turn it down to start with.
But when he found out it was in New Zealand he changed his mind.
"It is true I love New Zealand and love what New Zealand offers in terms of lifestyle.
Would I have taken this job if it was in another part of the world? No."
Leaving the United Kingdom was not a big deal for him.
He had spent eight years living in Singapore and had been back for only two months when he got the call.
Mr Anderson said the Sovereign role allowed him to live in a part of the world he really liked, for a company where he could add relevant experience.
Sovereign was the biggest player in the life insurance market in New Zealand with about 30% of the market.
But that did not mean the company could rest on its laurels.
"We aspire to continue to be the biggest player. We are much stronger than all our competitors and would expect to pick up business from them."
Charles Anderson: Chief executive, Sovereign New Zealand.
Age: 55.
Qualifications: Maths degree from Birmingham University and MBA from the University of London.
Work: Has worked in retail and international banking in the United Kingdom, United States and the Channel Islands. Worked at Lloyds as a sales director for Black Horse Life. He has since worked for Norwich Union and after setting up a bank in the UK became involved in distribution through other banks and strategic partners. He moved to Asia to to head up Aviva's financial services division and ran six businesses across India, China, Hong Kong, Singapore, Malaysia and Taiwan. Before joining Sovereign he was based in the UK running his own consultancy and working for a non-profit organisation in China and India.
Family: Partner Mary and two adult children. Hobbies: Competing in ironmans, fly-fishing, tennis, squash, golf and gardening.
