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.

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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.

The Insurance & Financial Services Ombudsman, Karen Stevens, has said she looks forward to insurance contracts becoming fairer and easier to understand for consumers.

“… 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.

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Next week is Privacy Week

Privacy Week 2024 runs from May 13 – 17. This year, the office of the Privacy Commissioner have chosen the theme ‘busting privacy myths’. There are a range of online events you can attend, and they will all be recorded and added to their YouTube channel.

Privacy Week 2024 runs from May 13 – 17. This year, the office of the Privacy Commissioner have chosen the theme ‘busting privacy myths’. There are a range of online events you can attend, and they will all be recorded and added to their YouTube channel.

2024 Privacy Week Programme

Monday 13 May

11:00am - Myth: Māori data sovereignty is too hard – introductory

1.00pm - A hacker's view of data breaches – introductory

 

Tuesday 14 May

8.30am - In-person IAPP Knowledge Net event – Wellington

10.30am - Busting myths about privacy and cyber security – introductory

12.00pm - Biometrics and you – intermediate

3:30pm - Sharing personal information: Why aren’t we sharing when we have authority to do so? – Intermediate.

 

Wednesday 15 May

9.30am - If I'm not doing anything wrong, what do I have to hide? – Introductory

10.45am - Safeguarding children and young people's privacy in New Zealand – Introductory

12pm - Resolving Privacy Complaints: Internal Resolution and Working with OPC – Introductory

1pm - Ask the experts: what you need to know about notifying individuals of a privacy breach – Introductory

2pm - What’s missing from the conversation on AI? – Intermediate

 

Thursday 16 May

9.15am - Privacy for Charities and Not-for-Profits: tips and tricks - introductory

10.30am - All privacy breaches need to be reported to the Privacy Commissioner? – intermediate

11.45am - Shielding Your Digital Self: Understanding Online Privacy Rights under the Harmful Digital Communications Act 2015 – introductory

1.15pm - Managing Privacy in the Data & Generative AI Era – Intermediate

2.30pm - Young people don't care about Privacy - Debunking the myth – Introductory

3.45pm - Can we learn anything from over the ditch? The role of advocates in the privacy ecosystem - introductory

 

Friday 17 May

9.00am - Sharenting, Children and Privacy – The fine line between 'cute' and 'concerning'

10.30am - Privacy is More than Compliance: Transforming Privacy into a Strategic Business Advantage - Advanced

12.00pm - Data Privacy: Protecting Children in the Digital Age – Introductory

2.00pm - My DNA will only be used in this way - busting privacy myths about DNA - Introductory

 

There is a range of collateral available for you to put on your website or social media or pop up around the office here and a quiz you can take with your team available here.

 

More daily news:

nib offers respondents to Workplace Wellbeing Survey a chance to win

Contracts of Insurance Bill which seeks to shift onus of disclosure duties to insurers has passed its first reading at Parliament

ICNZ has welcomed the first reading of the Contracts of Insurance Bill

The government calls for public submissions on the Contracts of Insurance Bill

TSB is looking for a Senior Data Scientist

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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

The Financial Services Federation expresses support for the Commerce Commission’s draft report on banking services

Finance Minister Nicola Willis open to how Kiwibank can find more capital to better compete with big four banks

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Naomi Ballantyne to retire from Partners Life

Naomi Ballantyne has announced her intention to retire from Partners Life. Ballantyne will remain as Managing Director until her planned departure after the completion of the March 2024 financial year end. Ballantyne plans to undertake some consulting work for the global Dai-ichi Life business after her departure.

Ballantyne has been with Partners Life 12 years, after founding it in 2011. Dai-Ichi Life purchased Partners Group Holdings for $1 billion in August 2022.

More daily news:

nib unveils more details of their Life and Living policies, available from 1 June

Southern Cross offers 2 months free life insurance

Some FAPs have unnecessary duplication of information when complying with disclosure regulations

Survey finds 56% of kiwis think financial advisers should know about ethical/responsible investing options

FMA executive director Paul Gregory challenges the market to substantiate its green claims

AIA NZ has been awarded the Accessibility Tick

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