Chatswood serves the life and health insurance sector in New Zealand with market intelligence, data, and bespoke consulting services. Some of these are provided in conjunction with Quality Product Research Limited - a subsidiary that brings you Quotemonster.
We believe that good decisions are more likely to occur when we have good information about the market environment in which we operate. Intuitive leaps and creative decisions are always required, of course, but the more they are based on a firm foundation of observation, the better they tend to be.
Contracts of Insurance Bill
Commerce and Consumer Affairs Minister Andrew Bayly talks about his three focus points; ombudsman welcomes changes; and where to find more information on how the Bill could affect you.
Commerce and Consumer Affairs Minister Andrew Bayly has said that insurance law reforms are “long overdue”, with some laws over 100 years old. Bayly has said his three focus points for the new Contracts of Insurance Bill are to make it easier for consumers to get insurance, for consumers to better understand what they’ve signed up for and for consumers to get paid out more quickly. Bayly has said the government intend to pass the Bill before the end of 2024.
“… Many consumers don’t understand what information they are supposed to tell their insurer, and the consequences if they don’t disclose this information.
Forgetting to tell the insurer something regarded as being material to the risk of providing a consumer with insurance (i.e. whether the insurer would have provided cover or not, and on what terms) can be fatal.
I’m pleased that this law change will require insurers to ask clear and relevant questions, making it easier for consumers to know what information they have to provide.”
Submissions on the Bill are open until 3 June 2024. The Financial Services Council (FSC) is urging members to feedback and has circulated an industry submission process document.
We think that all the questions adviser-focused insurers ask are clear and relevant and that in a full underwriting environment it is clear to customers what they should be disclosing. But this is not the full scope of the changes that the law will bring in. Bell Gully’s comment covers this well:
“Most submitters welcomed the overall approach taken in the exposure draft, which proposed to consolidate, modernise and clarify a number of outdated statutes into one primary statute governing insurance policies generally, as well as the specific relationship between insurers and their customers. The Bill also proposed to bring about significant changes in the law of insurance in New Zealand – particularly relating to the duty of disclosure owed by insureds, the duty of utmost good faith, the remedies available to a party who has a claim against an insolvent insured, and the application of the unfair contract terms regime to insurance policies. The details of some of these substantive changes were met with resistance, including in our submission, primarily due to concerns that the reforms may create significant uncertainty for both insureds and insurers.”
For more details on the content of the Bill, we suggest that you check out their summary here. Steve Wright also outlines seven potential changes facing advisers and insurers here.
FMA report on insights from monitoring Financial Advice Providers
The Financial Markets Authority (FMA) will be publishing a report on their insights from their monitoring of Class 1 and 2 Financial Advice Providers (FAPs), with the report expected to be released in June.
The Financial Markets Authority (FMA) will be publishing a report on their insights from their monitoring of Class 1 and 2 Financial Advice Providers (FAPs), with the report expected to be released in June.
The FMA will host a series of in-person and online forums to discuss the report and answer questions. The sessions will cover
• Weaknesses identified during the first 12 months of monitoring visits.
• Good practice identified during those visits.
• Regulatory returns, which are due between 1 July and 30 September 2024.
• The FMA’s transition to an outcomes-focused regulator.
• Scams, and how financial advisers may be able to support clients.
Dates and times for the online sessions are yet to be released; dates and locations for the in-person sessions are below.
• Auckland – Tuesday, 11 June 2024
• North Shore – Thursday, 13 June 2024
• Wellington – Wednesday, 19 June 2024
• Palmerston North – Thursday, 20 June 2024
• Hamilton – Tuesday, 25 June 2024
• Christchurch – Thursday, 27 June 2024
Invitations to these sessions will be sent to the relevant FAPs in May. If you have any questions about FAP monitoring, you can contact the FMA at questions@fma.govt.nz.
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Chubb Life Support Person of the Year entries are open
Chubb Life is bringing back their Support Person of the Year award, to recognise behind the scenes team members.
Chubb Life is bringing back their Support Person of the Year award. The award recognises behind the scenes team members. To nominate someone, enter here before 24 May.
The winners will receive a $1,000 Prezzy Card, runner up with receive a $500 Prezzy Card and third place will receive a $300 Prezzy Card.
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Entries to Chubb Life Support Person of the Year are open
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The FSC have announced their fourth Climate Related Disclosures Series session
Financial Advice New Zealand appoints new Head of Professional Development
Financial Advice New Zealand has appointed Cecilia Farrow to the newly created role of Head of Professional Development.
Financial Advice New Zealand has appointed Cecilia Farrow to the new role of Head of Professional Development. Farrow was a former director on the Board of Financial Advice New Zealand.
Farrow says
“Throughout my 27 years in financial services, I have been passionate about contributing to lifting financial advice to a professional status. The settings are in place now for all financial advisers, irrespective of the scope of advice they specialise in, to be recognised as a professional. We know this will increase trust by consumers and reduce barriers to kiwi’s seeking out quality financial advice. It’s exciting to have the opportunity to spearhead the Financial Advice New Zealand professional development programme and professional designations pathways to support our members to reach the pinnacle of their chosen career.”
Following Cecila running a powerful workshop on the subject of professional designation for insurance advisers at the recent Financial Advice New Zealand conference in Wellington, this appointment makes a great deal of sense. We wish Cecilia all the best with this important portfolio, and we intend to amplify messages around the value of a good industry-based practitioner’s qualification, and lend a hand where we can.
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Real Mortgages merges with adviceHQ
Southern Cross Healthcare hospitals partner with Baxter Healthcare to recycle PVC IV bags
Public health experts warn low immunisation rates put New Zealand at risk of large measles epidemic
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KiwiSaver financial hardship withdrawals hit an all-time high of $29.3 million in March
Legal and regulatory update for the life and health insurance sector
29 Apr 2024 - The FMA is holding a series of forums to dicuss the report on their monitoring of Class 1 and 2 Financial Advice Providers (FAP). Sessions will be held on 11 June in Auckland; 13 June on the North Shore, 19 June in Wellington; 20 June in Palmerston North, 25 June in Hamilton and 27 June in Christchurch. Invitations to register for these sessions will be sent to the relevant FAPs in May.
29 Apr 2024 - The Commerce Commission will hold a consultation conference on the banking competition draft report in Auckland on May 13. https://www.goodreturns.co.nz/article/976523089/having-a-say-on-draft-banking-report.html
29 Apr 2024 - The Department of Internal Affairs, the Financial Markets Authority and the Reserve Bank of New Zealand have produced new and updated guidelines related to customer due diligence ahead of the new regulations due to come into effect from 1 June 2024. https://www.dia.govt.nz/AML-CFT-Updated-guidelines-related-to-customer-due-diligence
29 Apr 2024 - The Contracts of Insurance Bill introduced to Parliament. https://bills.parliament.nz/v/6/019dad64-3f9e-46b8-5cd9-08dc67f794e8
Fidelity Life bring back customer engagement initiative
Fidelity Life’s Customer Engagement Initiative to recognise advisers who achieve great customer outcomes is back.
Fidelity Life’s Customer Engagement Initiative to recognise advisers who achieve great customer outcomes is back. To qualify, advisers must register to participate in the initiative prior to 10 May. From 1 April – 31 July 2024, Fidelity Life will review participants Adviser Net Promoter Score (a measure of customer satisfaction).
Twenty five qualifying advisers (and their partners) with the top NPS scores will be hosted at a 3-day customer engagement forum at Kauri Cliffs in the Bay of Islands.
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Chubb Life increase their Lifetime Reward discount and enhance commission offering
Chubb Life have increased their current 10% Lifetime Reward discount to 15% for all new business issued from 16 April to 30 June 2024.
Chubb Life have increased their current 10% Lifetime Reward discount to 15% for all new business issued from 16 April to 30 June 2024. The discount is available on Life and Trauma covers on Chubb Life’s Assurance Extra and Assurance Extra Business policies for customers who have a BMI measurement of between 18.5 and 24.9 and who have been a non-smoker for at least 12 months. Clients can combine this offer with the current 2 months’ free and multi-benefit discount offers.
Chubb have updated their scenario videos to help you explain how different customers can make the most of the offers.
From 30 April, Chubb Life are increasing their pendulum commission offering for new business, providing an up-front component when you choose either the 15%, 20% or 30% renewal option. They will pay renewal commission from Month 2. Chubb Life have also increased their Disability Income upfront rate and pendulum options.
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Steve Wright gives his views on statements of advice
Financial Advice NZ webinar 'When Clients Claim' 1 May
Jon-Paul Hale talks through the problem of digital document insecurity
The Finance and Mortgage Advisers Association of New Zealand (FAMNZ) opens up membership
Resolution Life’s purchase of Asteron Life will be different than when they purchased AMP Life
Grant Willis, Asteron Life executive general manager, says Resolution Life's proposal to acquire Asteron Life is very different to when it bought AMP Life.
Advisers had previously expressed frustration after Resolution Life’s acquisition of AMP Life, particularly around communications and service levels.
Willis says that this time it will be different as Resolution Life are supporting Asteron Life’s growth ambitions, keeping the current management team in place and keeping the branding the same. Willis says the purchase will allow Asteron Life to invest in things like digitising the business to drive growth.
In addition, Willis points to new leadership at Resolution Life Australasia, with Tim Tez taking on the CEO role less than 18 months ago.
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Legal and regulatory update for the life and health insurance sector
5 Apr 2024 - Reserve Bank of New Zealand Board member Hinerangi Raumati-Tu’ua MNZM has resigned from her role with RBNZ, following appointment to the Board of the Guardians of New Zealand Superannuation. https://www.rbnz.govt.nz/hub/news/2024/04/rbnz-board-member-departing
8 Apr 2024 - The Financial Markets Authority is introducing a new standard condition for certain market licence holders following consultation. The new licence condition will focus on business continuity and technology systems. The new condition will come into effect on 1 July 2024.
The standard condition is relevant to the following types of market service licences:
Managers of registered schemes (but not restricted schemes)
Providers of discretionary investment management services
Derivatives issuers
Prescribed intermediary services (peer-to-peer lending providers and crowdfunding service providers).
The new standard condition requires licence holders to have and maintain a business continuity plan that is appropriate for the scale and scope of its service. Licence holders will also be required to make sure that their critical technology systems are operationally resilient. If the licence holder suffers an event that materially affects the supply of its service, it must notify the FMA as soon as possible, or no later than 72 hours after it has determined the event is a material incident.
10 Apr 2024 - Minister of Commerce and Consumer Affairs, Hon Andrew Bayly March 2024 diary released with the following potential financial services sector related meeting noted:
4 Mar 2024 - DINNER: Retirement Commissioner (Jane Wrightson)
5 Mar 2024 – SPEAK: Financial Advice NZ Conference
6 Mar 2024 – MEET: FMA Chair (Todd Mark)
6 Mar 2024 –MEET: Suncorp NZ (Jimmy Higgins, Clayton Cosgrove)
7 Mar 2024 – SPEAK: Insurance Council of NZ Conference
8 Mar 2024 -MEET: ASB CEO (Victtoria Shortt)
14 Mar 2024 – MEET: ANZ (Antonia Watson, Craig Bruce, Jessica Mckay-McCutch)
14 Mar 2024 – MEET: Insurance Council of NZ CE and Chair (Tim Grafton, Amanda Whitting)
19 Mar 2024 –MEET: Commerce Commission
20 Mar 2024 – MEET: Insurance Brokers Association of NZ (Melanie Gorham)
28 Mar 2024 – MEET ASIC (Kate O'Rourke and Nathan Bourne)
11 Apr 2024 - FMA has opened consultation on proposed exemptions for UK financial advice firms from certain requirements of the Financial Markets Conduct Act 2013. These exemptions would allow UK firms to provide financial advice to clients in New Zealand on the UK law aspects of transferring funds in a UK pension scheme with safeguarded benefits to a New Zealand qualified registered overseas pension scheme. https://www.fma.govt.nz/business/focus-areas/consultation/consultation-proposed-exemptions-for-advice-on-uk-law-aspects-of-defined-benefit-pension-transfers/
AIA launches new AIA vitality app
AIA NZ has launched a new AIA Vitality app with enhanced features and functionality. The refreshed app has a new look and feel and boasts several new features.
AIA NZ has launched a new AIA Vitality app with enhanced features and functionality. The refreshed app has a new look and feel and boasts several new features:
· increased security via multi-factor authentication during the login process
· a new voucher wallet to view and access rewards
· a streamlined AIA Vitality Age Assessment
· new Financial Wellbeing Assessment.
AIA NZ Chief Customer Officer Angela Busby says
“Throughout the first five years of AIA Vitality, we have worked hard to continually enhance and develop the programme for our members. The new app will take this a step further, making it even easier to engage with the programme, track their health journey, and earn rewards.”
Russell Hutchinson, one of our directors and also an AIA Vitality member says:
“The new app is a big step forward in usability - simple things like showing you which surveys and activities you have completed and which you still have to go make it much easier to get a sense of where you are at from a points perspective. I was also pleased that as soon as I logged in, it pointed out that I’d earned a reward, and claiming it involved about half the clicks previously required!”
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AIA will soon launch a six-part TV and podcast content series called The Upside