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.
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
Government has repealed parts of the Credit Contracts and Consumer Finance Act
The government has repealed some parts of the Credit Contracts and Consumer Finance Act (CCCFA). Commerce Minister Andrew Bayly said of the affordability regulations introduced to the CCCFA in December 2021
“These regulations created unnecessary compliance costs and are an excessive barrier for lending. And worse, the regulations failed to protect the most vulnerable Kiwis – the very people they were intended to safeguard”
The time to process loans increased substantially, with Minister Bayly saying some lenders had told him small loans that used to take two hours to process took up to eight hours to process under the new regulations.
Additional reforms to the act include:
Improving dispute resolution to better protect consumers.
Exempting councils from the CCCFA so they are able to offer low-risk financial products to help households improve their energy efficiency by installing heat pumps and insulation.
Removing duplicate reporting requirements.
We hope that the relaxation on small loans flows through to banks being able to offer more flexibility to people with what amounts to a timing issue, rather than a lending issue. But we know that lending rules are notoriously difficult to manage. This is one of the reasons why aspects of the wider programme are of more interest.
Minter Ellison puts the changes into context within a program of changes to financial law and regulation which the government has planned.
Of particular interest are the changes in supervisions structures with the responsibility for administering the CCCFA moving from the Commerce Commission to the Financial Markets Authority. Lending is a financial product, and we think the Financial Markets Authority, with conduct supervision responsibilities and, essentially, all the other financial products, is probably a good home for this law from an ongoing regulation perspective.
More daily news:
Jon-Paul Hale highlights issues with digital documents
The Ombudsmen FSCL and the IFSO Scheme are in merger talks
Empower Women breakfast at the National Strategy for Financial Capability Partners Conference
Andrew Dentice urges more discussion on the benefits of open banking
Pharmac outlines funding plans for continuous glucose monitors for type 1 diabetics
Legal and regulatory update for the life and health insurance sector
23 Apr 2024 - The Reserve Bank of New Zealand released its submission on the Commerce Commission’s draft report from its market study into personal banking services. https://www.rbnz.govt.nz/hub/news/2024/04/rbnz-releases-submission-on-draft-commerce-commission-market-study
23 Apr 2024 - The Financial Markets Authority has published its guide for Managed Investment Scheme managers and their supervisors for effective liquidity risk management, following consultation. https://www.fma.govt.nz/news/all-releases/media-releases/importance-of-effective-liquidity-risk-management/
23 Apr 2024 - Commerce Minister Andrew Bayly is planning to align the rules of the four approved financial dispute resolution schemes - Banking Ombudsman, the Insurance and Financial Services Ombudsman, Financial Services Complaints Limited, and the Financial Dispute Resolution Service – and raise the maximum amount the schemes can award to $500,000. The government aims to have the regulations providing for the changes in place by July 18. https://www.goodreturns.co.nz/article/976523065/aligning-disputes-resolution-schemes.html
23 Apr 2024 - The Australian Prudential Regulation Authority (APRA) has released a consultation on proposed enhancements to the content and presentation of its suite of quarterly insurance statistical publications. https://www.apra.gov.au/news-and-publications/apra-consults-on-enhancements-to-quarterly-insurance-publication-suite
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!”
More daily news:
Financial Advice NZ urges advisers to take part in its industry survey
FSC webinar 'The future of total permanent disability insurance' 21 May
FAMNZ request apology from Commerce Commission chair John Small
Chubb Life's eApp now automatically identifies if customers qualify for 10% Lifetime Reward discount
Westpac and NZFSG recognised at the 2024 New Zealand Mortgage Awards
nib Little Legends $10K Relay is back in 2024
AIA will soon launch a six-part TV and podcast content series called The Upside
Asteron Life to be sold to Resolution Life Australia
Resolution Life Australasia has acquired Asteron Life from Suncorp Group for a purchase price of $410 million.
Resolution Life Australasia has acquired Asteron Life from Suncorp Group for a purchase price of $410 million. Asteron Life has about 165 employees servicing more than 180,000 customers and their advisers. Resolution Life Australasia is part of Resolution Life, a global life insurance group with around 14 million policyholders.
The acquisition is still subject to New Zealand regulatory approvals, with the deal expected to complete in approximately nine months. If the purchase goes ahead, Resolution Life will become the second largest life insurer in New Zealand.
Tim Tez, Chief Executive Officer Resolution Life Australasia, said
“This acquisition further demonstrates our commitment to the Australasian market and our success in growing our business in the region… Asteron Life presents a compelling opportunity to continue to grow through new individual and group customers while continuing to support existing customers.
Resolution Life will support the Asteron Life business with its momentum and success in the New Zealand life insurance market. As a trusted life insurer, Asteron Life will continue to operate as a standalone New Zealand licenced life insurance company, under its existing brand in New Zealand and support advisers and their customers using the same dedicated team and management.”
More daily news:
The FSC publish their Life Insurance Industry Spotlight December 2023
The Triple A Advisers Association and Plus4 Insurance Solutions have merged
Seven Sharp featured Kate Dron chatting about what it means to be an actuary
Next version of NZCFS Level 5 has been submitted for approval with NZQA
Southern Cross Health Insurance has appointed Andrea Brunner as its Chief Operating Officer
Marsh releases ‘New Zealand insurance market update 2023: Year in review’
Deloitte and FintechNZ launch the 2024 New Zealand Fintech Pulsecheck
Associate Health Minister David Seymour says changes to the Medicines Act could be needed
Legal and regulatory update for the life and health insurance sector
21 March 2024 - Insurance Contracts Bill had first reading in Parliament. https://bills.parliament.nz/v/6/fcc98f82-e1f8-4aa4-6c02-08dc494421e8?Tab=history
25 March 2024 - The Reserve Bank of New Zealand has published an analytical note proposing improvements to the methodology used by the Reserve Bank of New Zealand to assess labour market indicators of inflationary pressure. Measuring inflationary pressure from the labour market can be improved by watching a narrow set of four high-quality indicators: 1) the job transition rate (the share of workers switching between jobs), 2) the job vacancy-to-unemployment ratio, 3) the unemployment rate, and 4) a survey measure of labour as a limiting factor for business production. https://www.rbnz.govt.nz/hub/news/2024/03/improving-how-we-measure-inflationary-heat-in-the-labour-market
26 Mar 2024 - The Reserve Bank of New Zealand has published Guidance for our regulated entities on managing climate-related risks. https://www.rbnz.govt.nz/hub/news/2024/03/guidance-issued-on-managing-climate-related-risks
26 March 2024 - The Financial Markets Authority has issued warnings to Southern Cross Medical Care Society (SCMCS) and Southern Cross Pet Insurance (SPCI) for failing to apply advertised discounts to each entities’ respective insurance products. The FMA is satisfied, and both entities accept, that they breached the fair dealing provisions of the Financial Markets Conduct Act by making false or misleading representations. The representations relate to the failure on each entities’ part to correctly apply advertised discounts to affected customers’ invoices, resulting in overcharged premiums. The FMA determined that the cause of each issue was due to poor controls and/or technical errors.
SCPI made an initial report to the FMA in November 2022 disclosing some of the contraventions and later reported more details. Following these disclosures, further enquiries from the FMA and an internal review in the wider Southern Cross Group, the extent of the contraventions was established.
SCPI failed to correctly apply the following discounts:
Additional pet discount
Direct debit discount
Southern Cross membership discount.
SCMCS failed to correctly apply the following discounts:
Free child discount
Healthy lifestyle rewards discount
Low claims discount.
The total amount of SCPI premiums overcharged was $424,508, affecting 7,542 customers, approximately 1.28% of its customer base. SCMCS overcharged $161,547 across 1,957 customers, approximately 0.2% of its customer base.
https://www.fma.govt.nz/news/all-releases/media-releases/fma-warns-southern-cross/
28 Mar 2024 - The Council of Financial Regulators has released an updated Regulatory Initiatives Calendar for the financial sector for Q1 2024. https://www.cofr.govt.nz/files/regulatory-initiatives-calendar/regulatory-initiatives-calendar-q1-2024.pdf
28 Mar 2024 - The FMA is warning the public to be cautious after fake documents claiming to be issued by the FMA were sent out as part of what appears to be a ‘recovery scam’ - where previous victims of financial crimes are targeted by criminals promising to help get lost money back. https://www.fma.govt.nz/library/warnings-and-alerts/
28 Mar 2024 - DIA encourages reporting entities to get RealMe verified before annual reports are due. From 1 July 2024, you’ll be able to file your AML/CFT annual report via AMLOnline. https://www.dia.govt.nz/AML-CFT-Get-your-RealMe-verified-early-this-annual-reporting-season
28 Mar 2024 - The FMA has said that overtime they will assess whether their regulatory framework needs strengthening to support better deployment of Generative Artificial Intelligence. https://www.fma.govt.nz/library/opinion/gen-ai/
28 Mar 2024 - The Commerce Commission sees "good reasons" to recommend designation of the interbank payment network to Commerce and Consumer Affairs Minister Andrew Bayly. https://www.interest.co.nz/banking/127024/commerce-commission-wants-more-influence-over-interbank-payments-potentially
Asteron Life updates personal and business insurance products
Asteron Life has unveiled a raft of updates to their personal and business insurance products.
Asteron Life has unveiled a raft of updates to their personal and business insurance products.
The changes include clarification of existing policy terms to ensure greater transparency and ease of understanding and a range of new and enhanced benefits.
The new benefits and enhancements include:
Repatriation benefit on personal and business life cover
Advancement benefit for terminal conditions on personal life cover
Shortened waiting periods for income protection and mortgage and living cover
Cover conversion benefit on business disability cover and farmers disability cover
Enhancements to the Funeral benefits on life cover, kids cover and business expenses
Enhancements to two definitions for trauma recovery and 11 definitions for major trauma
The requirement for 14 days total disability as part of the waiting period has been removed from business disability cover, farmers disability cover and business expenses cover
Introduction of a premium and cover suspension to the optional needlestick benefit
Removal of some restrictions from various benefits such as specific injury support – lump sum and monthly, trauma reinstatement option and the crisis benefit within the optional immediate assist package
Claire Sutton, Executive Manager Life Portfolio and New Business at Asteron Life said
“It's key that our range of covers continue to add value for our customers, policies and terms are easy to understand, and insurance remains as affordable and accessible as possible. We know that these things really matter for our customers and advisers. We also worked hard to ensure that these improvements have not increased customer premiums, given we know how tough it is for many New Zealanders right now.”
More daily news:
AIA extend one month’s premium free on qualifying new policies
mySolutions webinar 'Quotemonster Research' 9am 3 April
mySolutions roadshows are running in May
Partners Life sponsor Cheques and Balances podcast
Commerce Commission to meet with Financial Advice New Zealand after accused of being out of touch
Quarterly rate review results in rising premiums at nib
nib has reviewed its health insurance premiums. Current members’ premiums are reviewed annually at their policy anniversary, with the increases ranging from 9% to 16%, as per below.
Premiums for prospective new members will be updated from 1 April 2024, with new rates being automatically updated in nibAPPLY.
You can find out more in their frequently asked questions here.
More daily news:
mySolutions webinar 'Ark Adventures' 9am 27 March
Craig Tyson leaves head of Australasian listed property role at ANZ investments
Maaike van Tol leaves head of asset allocation role at ANZ investments
FSC publish KiwiSaver Industry Spotlight December 2023
Commerce Commission says mortgage advisers at risk of being ‘unduly influenced’ by commissions
Controversy has arisen based on the back of some comments John Small, Commerce Commission chair has made around the mortgage advice sector, on the back of the Commerce Commission releasing a draft report from the market study on the banking sector that has recently been released.
Controversy has arisen based on the back of some comments John Small, Commerce Commission chair has made around the mortgage advice sector, on the back of the Commerce Commission releasing a draft report from the market study on the banking sector that has recently been released.
Small told journalists that he’s ‘not sure if you went to a mortgage broker that they would tell you’ about how they only work with certain banks and the different commissions advisers can receive, stating,
“From the broker's point of view, they will get different amounts of money from different banks. I'm not sure when you go to a mortgage broker that they would declare that to you.”
There has been a lot of feedback from mortgage advisers on the article posted on Good Returns, qualifying that they both state which banks they work with and the fees they receive from each bank in their disclosure statements all clients receive.
We study disclosure documents and note that they are all good at disclosing the range of lenders that the mortgage adviser offers to clients. The information is in the public disclosure document and is clear. The range that most mortgage advisers have access to through their aggregator is usually extensive as well - they are subject to commercial pressures and operate under strong incentives to ensure that they have relationships with at least the main lenders. Most have longer lists. Although we cannot access robust statistical information on disclosure on specific fees and commissions once a preferred lender is established, we note that there is clear guidance on how to make effective commission disclosure. So it would be interesting to hear more details on the experiences are leading the Commerce Commission to this viewpoint. On the other hand, the comments about AML/CFT limiting access to even basic banking services ring true to many of us in the sector.
More daily news:
Financial Advice NZ central branch meeting 26 March, Palmerston North
Legal and regulatory update for the life and health insurance sector
22 Feb 2024 - The Commerce Commission has issued an Open Letter to participants of New Zealand’s retail payment system setting its expectations of the industry to deliver a more competitive environment that can give Kiwis new options to pay for goods and services. https://comcom.govt.nz/news-and-media/media-releases/2024/comcom-calls-for-banks-to-pick-up-the-pace-on-payment-options
22 Feb 2024 - Assistant Governor/General Manager Transformation, Innovation, People and Culture Juliet Tainui-Hernandez has resigned. She will be leaving RBNZ at the end of April 2024. https://www.rbnz.govt.nz/hub/news/2024/changes-to-rbnz-executive-leadership-team
26 Feb 2024 - The Commerce Commission has released an updated Cartel Leniency and Immunity Policy and Template Leniency Agreement which removes the option for a person to seek criminal immunity and/or civil leniency for a ‘naked’ cartel attempt. https://www.bellgully.com/insights/commerce-commission-updates-cartel-leniency-and-immunity-policy/