The FSC have released this announcement about Partners Life joining the association.
Partners Life Joins the FSC The Financial Services Council announced today that Partners Life has joined the association, bringing the total number of members to 15 members and 14 Associate members. Financial Services Council Chief Executive Richard Klipin said, “We are pleased to welcome back Partners Life to the Financial Services Council. The Industry is going through rapid change and Partners Life is an important part of the New Zealand Life insurance landscape.”
As the voice of the Financial Services Industry, the FSC advocates for a strong and robust wealth management industry that serves the New Zealand community. With the inclusion of Partners Life, the FSC now represents over 90% of the Life Insurance market in New Zealand. “Strong competition is a signpost to a robust sector dedicated to serving customers,” said Klipin, “and members of the FSC are dedicated to looking after the insurance and wealth needs of New Zealanders.”
Naomi Ballantyne, Chief Executive of Partners Life said, “Partners Life is very pleased to have re-joined the FSC at this time when the organisation has demonstrated a renewed focus on its key objectives; when the industry is facing significant change; and where a strong and united industry voice has become a necessity.” The FSC is focussed on good policy and a sustainable, growing market place. Our strategy is focussed on three important outcomes: 1. Strong consumer outcomes. The Financial Services industry must continue to deliver great products and services that deliver to the wealth, protection and wellbeing of New Zealanders 2. Sustainability of the Financial Services sector. The sector is key for the prosperity of New Zealand – through the way we serve New Zealanders, to the jobs we create, to the insurance claims we pay, and to the way in which we help people save for retirement. 3. Increasing Professionalism and Trust through the FSC Code of conduct. This requires the industry to continuously improve, address the hard issues and increase the trust and transparency of the sector. Ends
Small business on the North Shore are looking for an insurance adviser, preferably an AFA. They are extremely busy and need to spread the workload. If you are interested please get send us an email email@example.com and we will put you in touch.
Trust Us website has this article giving five reasons as to why Family Trusts are better than Wills. Of course, for many people, I am sure that you could write an article on why a will is better than a family trust - if you have few assets, cannot afford the advice, lack the ability to keep the trust administration going, and so forth.
AMP RPP are introducing a new multi-benefit discount for new business which launches on the 20th of February. If the client has two 'eligible' benefits, a 5% discount applies and if they have three or more a 10% discount applies. Where an existing discount applies, such as the 15% IP discount when $350,000 Life Cover is taken, the higher of Multiple Benefit Discount and the existing discount applies.
The draft Financial Advisers Act has just been released on the MBIE website. An overview is here, the documents can be found at this link. Some of the key changes are outlined in this article on goodreturns. Feedback closes on the 31st of March.
Draft changes appear to leave a number of issues without adequate resolution, or perhaps a more generous interpretation might be that, resolution is entirely in the hands of the regulator.
We are worried that there may still be many people that can be "Financial Advice Representatives" that give no "Financial Advice". We are worried that there is not enough distinction between a "Financial Advice Representative" and a "Financial Adviser". We think that an ordinary person would assume that both give financial advice.
We are worried that given the absence of any differentiation the numbers of "Financial Advisers" will fall.
We are also concerned that there appears to be no mechanism to stop people who have been poor reps in one FAF moving to another to be poor reps.
More detailed review to be conducted during the week. Any clients wishing to discuss their submission should contact us.
The FMA have published it's updated Strategic Risk Outlook which can be found at this link. The document sets out how the FMA identifies and prioritises key risks to their objective of fair, efficient and transparent markets.
HARRISON, Peter (Harry). Born 27 April 1953, Taranaki, died peacefully at Hospice North Shore after an extended battle with cancer. Loving husband of Chris; much loved father of Mathew, Daniel and Anna; father in law of Christine and Sacha; Poppa of Cyrus, Maia and Aramis; and brother of Russell, Jim, Kath, Paul and Pauleen.
A service to celebrate Peter's life will be held at Windsor Park Baptist Church on Friday 17 February at 2pm. Peter will then return home to Taranaki on Saturday where whanau and friends will continue to commemorate his life at the Orimupiko Marae, Eltham Road Opunake, followed by his burial at the Orimupiko Urupa on Sunday. Link.
Peter Harrison, affectionately known as Harry, was much loved by many, many people in this industry. He loved what his industry did, providing financial lifelines when our bodies fail us. But I think even more he loved building partnerships with many different insurance advisers. And I think it was very hard for people to resist the enthusiasm that he had for both the benefits of the industry and the business opportunities therein. He was always infectious and always willing to leap into creating something marvellous.
He relished motivating and planning. He was a genuine developer of talent and opportunity. Particularly telling was his enthusiasm for starting from scratch with a new region, or a new panel of advisers - and finding opportunity. Not a product or detail person, he would focus on the essential 'why', the thing that would actually motivate you to action. Also a great enthusiast for life, and all its good things: food, clothes, music, driving, and people. Tremendous energy would be focused on these. Harry could be relied upon to help people, giving generously of time and resources. He would call sometimes and say "we've got to go and see..." and we'd be off. Sometimes he took a fierce delight in a good argument as well, ideally conducted with repeated supply of long black coffee. He loved his family, his care for them and their success drove him on. My thoughts are with them.
Read the works of some fans of digital disruption of the insurance industry and with care you can spot the difference between motivations. Some of the best commentators are genuine fans of digital capability, and tend to see it as a tool of customers, advisers, and insurers - not always all three at once, but they can imagine applications for all. They recognise that digital will create disruption, but they also know enough about the market to understand that there are reasons why different channels exist. Heck, if direct were the solution to everything - why is direct as a channel so small? Genuine fans of digital are unafraid to ask such questions and ponder the answers. The answers provide more insight into the market. They are interested in digital either because they have a technical background, or because they have seen initial digital offerings and are excited about their potential.
But mixed in among this herd is another fan of digital. They are less attracted by the new, than running away from the old. Theirs is a love of convenience because their real motivation isn't attraction at all. They just don't like advisers. Maybe they dislike the commission model. Maybe they had a bad experience with an adviser once. Whatever the reason they assume that some bad advisers means all advisers are bad. They ignore the complexity of advice which requires that some customers will always seek out a good adviser, and they looked around for another way. For them, digital is a way around the adviser channel, it is a marriage of convenience.
My preferred view of digital is as a tool, a new and powerful tool, which could be deployed in a number of ways to enhance the interactions between different groups in the market. I am interested in all channels, but recently I am very excited about adviser applications - partly because of my interest in Quotemonster, and the power that a research engine, a rules engine, and the creativity of advisers can combine to deliver.
There are so many good ways to use digital in adviser businesses, from ways to identify life events and situations which require advice online, cutting the time required to gather data, the efficiency of shared records, to the speed of online meetings, and the high bandwidth connection between adviser and client it enables.
From AMP's media release on support for youth skills development:
AMP New Zealand Managing Director, Blair Vernon says AMP is delighted to be partnering with Youth Town and the CFFC to empower young New Zealanders by sharing knowledge and skills that will make a real difference in their lives in a fun, interactive and engaging way.
“Sometimes financial aspects of life can be boring, tedious or just don’t make sense for young people, but it’s important they have the opportunity to learn how decisions they make today can affect their financial wellbeing for years to come.
“Getting to grips with the basics, like how a financial plan works or the importance of saving, will put them in a great position to achieve their financial goals in the future – like going to university or buying a house,” says Mr Vernon.
The financial capability workshop is part of the Prime Minister’s Youth Programme, being implemented by Youth Town, on behalf the Ministry of Social Development.
Over a decade after a couple of GPs from Queenstown scoped out the possibility of bringing a private hospital and surgical services to the area, it is now in action. Click here to read more about the $30 million project.
Michael Naylor, a senior lecturer in finance and insurance at Massey University, in this article says people should expect insurers to mine their social media accounts in the future to determine how much they will charge for insurance premiums and if they will pay out on claims. He predicts it will be one to three years away in New Zealand and says it may not come from existing insurers but new entrants to the market who will use personal data to cut insurance premiums for less risky customers.
Our view? Yes, and No.
We know of an insurer that already conducts web searches for public information relating to clients seeking substantial cover amounts for context and additional information to that contained in financial statements provided alongside the application. In one case that resulted in a decline. So, less than a year - say, now!
On the other hand most insurers are so slow to properly automate application processes that a three year time-frame to switch to underwriting based on social media information appears depressingly short. The only chance of making Michael Naylor's prediction come true would be a new entrant. So, probably no.
To be fair to insurers, there are a number of obstacles that are beyond their control:
First: capital. Most insurers in New Zealand are owned by organisations based somewhere else. Almost all of those places are bigger than here. That matters. For all that we might be a 'great test market' if you spend x million on a completely new way to underwrite (using social data rather than traditional application forms does count) then you need to recover that investment, more people to buy helps a lot.
Second: government and regulatory obstacles. New stuff needs new rules. There is an amazing database of health tests and prescription data that exists here in New Zealand. The data should be available for applicants for insurance to send to insurers - an amazing short-circuit of the error-prone lifetime memory test that we currently subject applicants to - but no... Next time someone from MBIE starts to talk about how inefficient the New Zealand life insurance industry is compared to international peers you should say "I'm glad you raised that..." and explain how they could fix it.
Third: reinsurance. Most NZ insurers reinsure a large proportion of their exposure. To try completely new ways of underwriting requires the agreement of that insurer or the willingness to take on more risk (which requires more capital - see above). It probably requires both.
Hans Rosling has died. A brief obituary is given at this link, by Gapminder, an organisation that he co-founded. For those unfamiliar with his work there is a brief video below which takes you through the incredible changes in wealth and health across the world over the last 200 years in just seven minutes. Well worth a look.
Here is an interesting article by Ross Campbell on Gen Re's website. It discusses the increasing incidence rates against survival rates and outlines some of the biggest risk factors and how this may effect critical illness insurance in the future.