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
A round-up of recent legal and regulatory updates including APRA’s update on life insurance claims and disputes statistics
16 Apr 2024 - The Australian Prudential Regulation Authority (APRA) has released its Life Insurance Claims and Disputes Statistics publication, covering a rolling 12-month period from 1 January 2023 to 31 December 2023. https://www.apra.gov.au/news-and-publications/apra-and-asic-publish-latest-data-on-life-insurance-claims-and-disputes-8
17 Apr 2024 - The Reserve Bank of New Zealand is continuing its exploration of a central bank digital currency, called 'digital cash' and asking for feedback from the public. Consultation is open 17 April until 26 July 2024. https://www.rbnz.govt.nz/hub/news/2024/04/consultation-opens-on-a-digital-currency-for-new-zealand
22 Apr 2024 - The Reserve Bank of New Zealand’s 2023 Climate Stress Test has found Climate-related risks need to be actively managed to protect the resilience of the financial system to other shocks. https://www.rbnz.govt.nz/hub/news/2024/04/climate-stress-test-assesses-resilience-of-major-nz-banks
22 Apr 2024 - The Council of Financial Regulators has published an updated Regulatory Initiatives Calendar for Q1 2024. https://www.cofr.govt.nz/files/regulatory-initiatives-calendar/regulatory-initiatives-calendar-q1-2024.pdf
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
Legal and regulatory update for the life and health insurance sector
12 Mar 2024 - The Australian Prudential Regulation Authority (APRA) has released its private health insurance risk equalisation statistics publication for the 2022/23 financial year. https://www.apra.gov.au/news-and-publications/apra-releases-private-health-insurance-risk-equalisation-statistics-for-3
12 Mar 2024 - The Quarterly Statement by the Council of Financial Regulators – March 2024 has been released. The Council discussed the work programme and priorities of the new Government. The Council reflected on the importance of cooperation and coordination between CoFR members to ensure Ministers were receiving advice that benefitted from agencies’ collective experience and perspectives. Dr Rod Carr joined the meeting to discuss the challenges posed by climate change. CoFR assessed the current state of New Zealand’s payments landscape against the vision it set out in July 2023. They noted the gaps, risks and issues that presented challenges to achieving the vision. https://www.cofr.govt.nz/news-and-publications/quarterly-statement-by-cofr-march-2024.html
14 Mar 2024 - The Reserve Bank of New Zealand has published the first legislative document setting out how it will take a proportionate approach when developing prudential standards for licensed deposit takers under the Deposit Takers Act 2023. https://www.rbnz.govt.nz/hub/news/2024/03/a-proportionality-framework-allows-for-diversity-while-promoting-financial-stability
Legal and regulatory update for the life and health insurance sector
13 Dec 2023 - The Reserve Bank of New Zealand acknowledges the amended Remit for the Monetary Policy Committee (MPC) issued by the Minister of Finance. The MPC Remit sets the operational objectives for monetary policy. The amended Remit retains an inflation target of 1% to 3% over the medium-term, with a focus on the 2% mid-point, and removes the objective to support maximum sustainable employment. https://www.rbnz.govt.nz/hub/news/2023/12/monetary-policy-remit-amended
14 Dec 2023 - The Reserve Bank of New Zealand has issued a formal warning to Citibank N.A. New Zealand Branch (Citibank NZ) relating to the wire transfer identity requirements under the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act 2009. https://www.rbnz.govt.nz/hub/news/2023/12/citibank-nz-issued-formal-warning-under-aml-cft-act
14 Dec 2023 - FMA offices are closed from midday, Friday 22 December, and will reopen 8.30am, Monday 8 January 2024 https://www.fma.govt.nz/contact/christmas-2023-holiday-hours/
14 Dec 2023 - The FMA has censured Go Financial Solutions Limited for failing to comply with several obligations under its financial advice provider (FAP) licence. Go Financial Solutions is a Christchurch-based FAP that provides advice on health, life and business insurance and mortgage lending. During a monitoring review earlier this year, the FMA found that Go Financial Solutions:
Had inadequate record keeping in relation to advice given to its clients
Failed to gather sufficient information about a client’s circumstances and was unable to demonstrate that recommendations made to clients were suitable
Failed to ensure its clients understood the financial advice they received
Failed to exercise care, diligence and skill when providing financial advice to its clients.
https://www.fma.govt.nz/news/all-releases/media-releases/fma-censures-go-financial-solutions/
14 Dec 2023 - The Australian Prudential Regulation Authority (APRA) has released the bi-annual life insurance institution-level statistics publication. https://www.apra.gov.au/news-and-publications/apra-releases-life-insurance-institution-level-statistics-0
14 Dec 2023 - APRA and ASIC have released an update to life insurers and friendly societies (life companies) on premium increases in the life insurance industry. https://www.apra.gov.au/news-and-publications/apra-and-asic-release-an-update-on-premium-increases-life-insurance-industry
15 Dec 2023 - Michele Embling, Chair of the External Reporting Board (XRB), has announced that the Climate-related Disclosures standards have now been published. https://www.xrb.govt.nz/news/latest-news/
15 Dec 2023 - ASIC today published its annual dashboard of regulatory costs for 2022-23 by activity for each sector and subsector under the industry funding model (IFM). https://asic.gov.au/about-asic/news-centre/news-items/asic-industry-funding-release-of-2022-23-annual-dashboard-and-summary-of-variances/
15 Dec 2023 - The Council of Financial Regulators has released an updated Regulatory Initiatives Calendar for the financial sector for Q4 2023. https://www.cofr.govt.nz/files/regulatory-initiatives-calendar/regulatory-initiatives-calendar-q4-2023.pdf
19 Dec 2023 - The Government is introducing and progressing under urgency a Bill to repeal the Taxation Principles Reporting Act 2023 https://www.beehive.govt.nz/release/government-introduces-taxation-principles-reporting-act-repeal-bill
19 Dec 2023 - Health Minister Dr Shane Reti is appointing a Crown observer to Health New Zealand – Te Whatu Ora https://www.beehive.govt.nz/release/crown-observer-be-appointed-health-new-zealand
19 Dec 2023 - The Climate Governance Initiative summarises the key pieces of information relevant to board directors from the UAE Consensus that was agreed in Dubai at the COP28 climate conference, to help directors understand the implications on business strategy and investment decisions. https://www.chapterzero.nz/news/cop28-key-outcomes-for-board-directors/
19 Dec 2023 - The Taxation Principles Reporting Act Repeal Bill had its First Reading https://bills.parliament.nz/v/6/9faa9e21-c7a9-4433-7e32-08dc003a05e3?Tab=history
Legal and regulatory update for the life and health insurance sector
30 Oct 2023 - The FMA publish key findings from the 2022 re-licensing of Supervisors https://www.fma.govt.nz/assets/Reports/Key-findings-from-2022-Supervisor-relicensing.pdf
31 Oct 2023 - The FMA is reminding licensed financial service providers about the importance of cyber-resilience as part of Cyber Smart Week 2023 https://financialmarketsauthority.cmail19.com/t/r-l-tixdult-btuitpxk-t/
31 Oct 2023 - The FMA released Climate-related Disclosures – Scenario analysis information sheet, detailing compliance expectations of the FMA for scenario analysis disclosures made under the climate-related disclosures (CRD) regime https://www.fma.govt.nz/library/guidance-library/scenario-analysis-information-sheet/
31 Oct 2023 - ASIC has released its second publication on information lodged under the reportable situations regime. Over 16,000 reports were made to ASIC by financial services and credit licensees under the regime between 1 July 2022 and 30 June 2023. The publication shows little improvement has been made in key areas of concern that ASIC highlighted in the first publication on insights from this regime last year. Among other things:
the proportion of the licensee population reporting remains very low, indicating that some licensees may not be complying with the regime
licensees are still taking too long to identify and investigate some breaches
a significant number of remediation activities are still taking too long to complete, and
there remain opportunities to improve identification and reporting root causes of breaches.
31 Oct 2023 - Financial Inclusion is one of CoFR’s five priority themes. COFR has pulled together recent publications in this area include the RBNZ’s Approach to Financial Inclusion and a joint message from the FMA and the Commerce Commission on supporting customers in financial difficulty. https://www.cofr.govt.nz/priority-themes/inclusion.html
1 Nov 2023 - The Reserve Bank of New Zealand release their November 2023 Financial Stability Report, which shows New Zealand's financial system remains strong and is well placed to handle the current adjustment to higher interest rates and more severe economic scenarios. https://www.rbnz.govt.nz/hub/news/2023/11/financial-system-still-adjusting-to-higher-interest-rates
Legal and regulatory update for the life and health insurance sector
4 Cct 2023 - FMA #9: Ethical Investing – World Investor Week special with Paul Gregory https://www.fma.govt.nz/library/podcast/5-mins-with-fma-podcast-9-ethical-investing-world-investor-week-special/
9 Oct 2023 - The ASIC Annual Forum is on 21–22 November 2023 in Melbourne. Early bird tickets are available now. https://asic.gov.au/about-asic/news-centre/news-items/asic-annual-forum-2023-last-chance-for-early-bird-pricing/
10 Oct 2023 - The Australian Prudential Regulation Authority (APRA) has issued a letter to all registrable superannuation entity (RSE) licensees on the revocation of superannuation standards. https://www.apra.gov.au/news-and-publications/apra-releases-letter-on-revocation-of-superannuation-standards-0
10 Oct 2023 - ASIC has made ASIC Corporations (Financial Reporting by Stapled Entities) Instrument 2023/673. The instrument continues the relief previously provided under ASIC Class Order [CO 13/1050] Financial reporting by stapled entities, which was subject to sunsetting on 1 October 2023. https://asic.gov.au/about-asic/news-centre/news-items/asic-remakes-financial-reporting-legislative-instrument/
10 Oct 2023 - ASIC has made ASIC Credit (Amendment) Instrument 2023/675, which extends the operation of ASIC Credit (Electronic Precontractual Disclosure) Instrument 2020/835 for a temporary period of 12 months until 1 October 2024, pending law reform. https://asic.gov.au/about-asic/news-centre/news-items/asic-extends-electronic-precontractual-disclosure-legislative-instrument/
10 Oct 2023 - Minister of Finance, Hon Grant Robertson, September 2023 diary released with no potential financial services sector related meetings noted. https://www.beehive.govt.nz/sites/default/files/2023-10/Ministerial%20Diary%20September%202023.pdf
10 Oct 2023 - The Quarterly Statement by the Council of Financial Regulators – October 2023 has been released. The Council discussed the current regulatory approach to protecting New Zealanders from financial scams, the regulatory approach to the credit unions and building societies sector, the Council’s coordinated approach to improving financial inclusion, and how the Council could better achieve and measure success in terms of its legislative mandate and the principles of good regulatory stewardship. https://www.cofr.govt.nz/news-and-publications/quarterly-statement-by-cofr-october-2023.html
11 Oct 2023 - The Australian Prudential Regulation Authority (APRA) has published four new updated frequently asked questions (FAQs) on the Australian Accounting Standards Board (AASB17) collections. https://www.apra.gov.au/news-and-publications/apra-publishes-aasb17-updates-to-insurance-frequently-asked-questions
12 Oct 2023 - The Reserve Bank of New Zealand published its Annual Report covering the year from 1 July 2022 to 30 June 2023. https://www.rbnz.govt.nz/hub/news/2023/10/rbnz-releases-annual-report-2023
Legal and regulatory update for the life and health insurance sector
27 Sep 2023 - The Australian Prudential Regulation Authority (APRA) has released a consultation on its proposed changes to the Economic and Financial Statistics (EFS) reporting standards and guidance, drafted in conjunction with the Australian Bureau of Statistics (ABS) and the Reserve Bank of Australia (RBA). Submissions should be sent to APRA by 6 November 2023. https://www.apra.gov.au/news-and-publications/apra-consults-on-updates-to-modernised-economic-and-financial-statistics
29 Sep 2023 - KPMG, Chapter Zero New Zealand and the Institute of Directors release 'What difference can directors make?', a new guide to climate governance based on interviews with 13 of New Zealand’s most experienced directors https://www.chapterzero.nz/news/what-difference-can-directors-make/
29 Sep 2023 - The Council of Financial Regulators has released an updated Regulatory Initiatives Calendar for the financial sector for Q3 2023. https://www.cofr.govt.nz/key-documents/regulatory-initiatives-calendar.html
Legal and regulatory update for the life and health insurance sector
30 Jun 2023 - Council of Financial Regulators completed an updated Regulatory Initiatives Calendar for the financial sector for Q2 2023 https://www.cofr.govt.nz/files/regulatory-initiatives-calendar/regulatory-initiatives-calendar-q2-2023.pdf
1 Jul 2023 - Chief Ombudsman marks 40th anniversary of the OIA coming into force by publishing a new Official Information self-assessment tool https://www.ombudsman.parliament.nz/news/40-years-oia-new-zealand