Graeme Edwards, acting CEO of AIA New Zealand, said, "We are excited that David Beckham is our new Global Ambassador as we champion our cause to further help improve health and wellbeing outcomes for Kiwis through initiatives like the AIA Healthy Kids Challenge and, ultimately, the launch of AIA Vitality in New Zealand."
No, the sharing economy is neither exempt from human behaviour, nor the law. Although some people think it is, that's just because you can often get away with it for a while... until disaster strikes. Sometimes people will behave badly, or have accidents, and break something really valuable in your Airbnb rental. If you then go and claim the insurer may point out that your house and contents cover was priced as a 'me living in the property' not 'renting the property out' cover. But this is easily fixed, they sell the other type, and you should buy it. It isn't even that expensive. So now you have no excuse.
Here is another approach to life sum insured calculation. I quite like the cut-to-the-chase simplicity of it, and the recognition of the practical implication of a low inflation/low return environment - the discount to the lump sum required to provide an income is not so big these days.
What does bother me is the focus. Life, life, life. Where is TPD, IP, and most crucially: Trauma. While setting IP sums insured is relatively straightforward given the twin caps of insurer maximum and client budget, setting trauma sums insured is a lot harder to manage. The 'buy as much as you can afford' argument runs into too much trouble, too quickly: what you can afford is shaped by the argument you make for having it, which comes back to the hunt for a simple, yet strong, basis for how much you need.
Recently one adviser said that in discussion with an oncologist they felt that it took two years in more than 90% of cases for the client to either recover or to progress to a terminal stage with most serious cancers - which form the basis for between 40% and 65% of all trauma claims. That seems like a good place to start, and the way to approach the client? "What would you like to be able to do during those two years? How much would that cost?"
As you may be aware, the Government has decided as part of the review of the Financial Advisers Act 2008 that there will be a universal code of conduct which sets out the minimum standards of conduct, competence and client care for persons giving regulated financial advice to retail clients.
The Government’s decisions around the new code of conduct will be reflected in the Financial Services Legislation Amendment Bill, which is expected to be introduced to Parliament later this year (a draft of the Bill is currently being publicly consulted on). To expedite development of the code, Cabinet has agreed that a Code Working Group be appointed to develop the code in parallel with the legislative process.
The Minister of Commerce and Consumer Affairs is now seeking expressions of interest for positions on the Code Working Group. The group will consist of at least seven members (with no more than eleven), with one member appointed as chairperson. This will include two members appointed based on their experience in consumer affairs or dispute resolution. Other members will be appointed based on their knowledge, skills and experience in the provision of financial services, or in other areas that will assist the Code Working Group to perform its functions.
Members of the Code Working Group will be appointed for a three year term, whereby its members will become the Code Committee under the new regime once the Bill is passed into law.
Interested parties can submit an expression of interest, or read the terms of reference and position description for the Code Working Group, at the MBIE careers centre website.
We encourage you to circulate this information to those you think may be interested in applying. Applications close at 5pm Friday 7 April.
Damien Mu, CEO AIA Australia and New Zealand, announces the departure of Natalie Cameron, CEO New Zealand and immediate appointment of Graeme Edwards as Acting CEO.
As Natalie Cameron nears the end of her 2 year contract as CEO of AIA New Zealand, and as part of changes in the reporting structure between AIA Australia and AIA New Zealand, Natalie has decided to accept an option to relocate back to Australia and will be leaving AIA. During her time with AIA New Zealand, the company has recorded the highest new business market share growth1 and has delivered strong results.
Immediately replacing Natalie as Acting CEO will be Graeme Edwards. Graeme has been with AIA for over 3 years and in that short time has played an instrumental role in delivering significant growth for the New Zealand business, has built strong relationships across the market and has a breadth of knowledge and experience that will undoubtedly set us up for success in the future.
Damien Mu, CEO Australia and New Zealand stated “Natalie has been a fantastic contributor to AIA and we wish her all the best for the future. I’m pleased to see the strong succession we have in place within the organisation and I look forward to our teams continuing to deliver the right products and solutions to our partners that meet the needs of our customers when they need it most.”
Tim Harford has written on insurance using the title 'what makes gambling wrong but insurance right?' The wide-ranging article then proceeds to tell some of my favourite stories about the origins of insurance. These are all great for engaging an audience, whether that is your next prospect or your next speaking engagement, about the value of insurance.
Harford does a great job because he understands that the value of cover is not merely the claim payment - it is bigger than that. People who own insurance and never claim still gain from it, and he illustrates the way insurance can help grow the economy because it enables people to take reasonable risks without having to worry about being ruined by bad luck.
Back to that question about gambling though; which Harford never entirely answers. Of course, you may be of the view that gambling isn't wrong. But the reality is that, like it or not, insurance and gambling have this in common: they can be used for good and bad purposes, and so they are both regulated industries. That's why insurers like to observe the principle of indemnity when assessing sums insured, it is also why we have laws restricting the cover levels permitted on children. Henry Stern at InsureBlog reports on a case where an underwriter may have not applied that caution. Regulation has always been part of our industry, and to judge by recent developments, will increasingly be a part of it.