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
FMA addresses feedback on liquidity guide; XRB appoint incoming CE; AA ordered to pay a penalty; RBNZ consulting on a revised access policy as part of review of ESAS; RBNZ publish Annual Report; XRB consults on amendments to Climate and Assurance Standards; FMA file proceedings against ASB for allegedly making false or misleading representations in relation to insurance products and banking services.
6 Oct 2024 - FMA sent a letter to licensed fund managers acknowledging the regulator had received feedback that the liquidity guide, as updated this April, is “preventing or disincentivising investment in private assets” and has been engaging with fund managers on the issue. https://investmentnews.co.nz/investment-news/fma-chief-hoses-down-fund-liquidity-guide-concerns-for-private-assets-cofi-entities-get-licensing-hurry-up/
7 Oct 2024 - The External Reporting Board today announced the appointment of Wendy Venter as its incoming Chief Executive, commencing 15 January 2025. Ms Venter will replace April Mackenzie, who announced in August her intention to step down at the end of a five-year term. https://www.xrb.govt.nz/news/latest-news/
7 Oct 2024 - AA Insurance New Zealand Limited (AAI) has been ordered to pay a penalty of $6.175 million for failing to apply multi-policy and membership discounts, as well as guaranteed no claims bonuses. AAI also misled customers about its multi policy discount offer in marketing material and misrepresented that certain eligible customers would receive its guaranteed no claims bonus for life. The High Court judgment follows proceedings brought by the FMA. https://www.fma.govt.nz/news/all-releases/media-releases/aa-insurance-to-pay-6-175-million-penalty/
7 Oct 2024 - The Reserve Bank of New Zealand is consulting on a revised access policy, as part of its ongoing review of the Exchange Settlement Account System (ESAS), a payments and settlement system used by banks. https://www.rbnz.govt.nz/hub/news/2024/10/esas-access-review-is-open-for-second-consultation
8 oct 2024 - The Reserve Bank of New Zealand has published its Annual Report covering the year from 1 July 2023 to 30 June 2024. https://www.rbnz.govt.nz/hub/news/2024/10/rbnz-releases-annual-report-2024
8 Oct 2024 - The XRB has published a consultation document on proposed 2024 amendments to Climate and Assurance Standards. The XRB is proposing providing relief by amending:
• NZ CS 2 Adoption of Aotearoa New Zealand Climate Standards
• NZ SAE 1 Assurance Engagements over Greenhouse Gas Emissions Disclosures. Consultation closes 30 October 2024.
8 Oct 2024 - The FMA has filed civil proceedings against ASB Bank Limited for allegedly making false or misleading representations in relation to insurance products and banking services.
The FMA’s proceedings have two causes of action. The first relates to the failure to apply multi policy discounts on ASB-branded insurance products. The FMA alleges that the misapplication of the multi policy discount arose through errors in the manual process undertaken by ASB staff at the point of sale for insurance products. A sub-issue involved ASB staff misinforming customers with policies of insurance for caravans and trailers that they were eligible for the multi policy discount, despite those policies being ineligible.
The second cause of action is in respect of ASB’s failure to consistently apply fee exemptions to certain customer accounts with access to ASB’s Fastnet Banking service, specifically: Society Cheque, Education Administration, and Business Focus accounts. As with the multi policy discount issue, the FMA alleges the failures arose through errors in the manual process undertaken by ASB staff. ASB did not have adequate systems in place to check that the fee exemptions were being applied correctly.
Winners at the 2024 FSC Awards announced
Congratulations to all the winners, finalists and nominees at the 2024 Financial Services Council (FSC) Awards.
Congratulations to all the winners, finalists and nominees at the 2024 Financial Services Council (FSC) Awards. We’re lucky to work in an industry with so many dedicated, innovative people who have a passion for what they do; the awards recognise some of the best and brightest among us.
FSC Acting CEO Haydee Stroud said
“…it was a privilege to be able to see such a diverse range and high calibre of merit. Entrants contributions to the financial services sector and to the wider New Zealand community have all played a part in growing the financial confidence and wellbeing of all New Zealanders.”
Contribution to Community Award – Toi Ora - nib and Ngāti Whātua Ōrākei
Emerging Trailblazer Award – Leigh Bennett, Fidelity Life
Excellence in Governance Award – The Compliance Company
Workplace Savings Award – Bruce Kerr, Professional Trustee
Excellence in Sustainability Practices Award – AIA New Zealand
Excellence in Wellbeing & Inclusion Award – Southern Cross Health Insurance
Team of the Year Award – Operations Team, Sharesies
Chair’s Award for Services to the Industry – Ana-Marie Lockyer: Chief Executive Officer, Pie Funds
More news:
Steve Wright questions why we index life insurance but not health insurance
Financial Services Federation welcome CCCFA reforms
FAMNZ to launch the Adviser Elevate series on 2 October
The FMA plans to review the mortgage advice sector
Report estimates additional value advisers add
ASB wins Excellence in Social Purpose Driven Marketing Strategy at the New Zealand Marketing Awards
ASB sponsor the Climate Change & Business Conference 2024
Commerce Commission release banking competitiveness study
The Commerce Commission have released the Final Report on personal banking competitiveness.
The Commerce Commission have released the Final Report on personal banking competitiveness. The 14-month market study found
“a stable, highly profitable, two-tier oligopoly with no disruptive maverick and a lack of obvious or aggressive price competition.”
The study found little strategic differentiation between the major banks and found their growth targets focus on maintaining market share and protecting margins and profitability, limiting competitiveness and innovation.
The Commission’s recommendations to Government can be grouped into four key areas and broadly speaking involve making Kiwibank a more disruptive competitor, accelerating progress on open banking, ensuring the regulatory environment better supports competition and empowering consumers.
While both the Finance and Mortgage Advisers Association of New Zealand (FAMNZ) and Financial Advice New Zealand (FANZ) have welcomed the report, after criticising the draft report which was released in March. Since then, the Commerce Commission has engaged with both associations as well as other representatives from the mortgage industry to better understand the role advisers work.
Leigh Hodgetts, country manager of FAMNZ, has called out the Commerce Commission’s statement that advisers should put more emphasis on price, saying that there are many factors around individual circumstances that must be considered when a consumer takes a loan.
Financial Advice New Zealand said it would be seeking clarity on the recommendations, in an effort to determine any unintended consequences.
More news:
Tony Vidler recommends advisers can evidence why their advice was suitable at the time
mySolutions webinar 'The meeting before the meeting' 28 August
Asteron Life sale should be completed by the end of January 2025
Asteron Life profit after tax fell by 27% to $19m
Financial Advice NZ Central Branch Meeting 27 August
Southern Cross Health Insurance opens nominations for Wayfinder Awards
ASB CEO Vittoria Shortt would like to see KiwiSaver policy changes
The FMA publish the latest 'Money with Mary'
IFSO needs to incorporate as a limited liability company for merger
Life advisers reminded they need to actively review legacy policies
Compliance Refinery director Steve Burgess has reminded life insurance advisers they need to review legacy policies or risk opening themselves up to censure by the FMA.
Speaking at a Quotemonster roadshow event in Lower Hutt, Burgess said of legacy products,
“If you don't look at it, the regulator could decide that's you saying that product is suitable for your client.”
Burgess also cautioned that some legacy products have features that are difficult or impossible to replicate with new policies, so as well as listing the advantages of replacement policies, advisers need to be recording any disadvantages clients may face if they change.
Steve Wright has also written of how the FMA have flagged ‘suitability of advice’ as something they will be focusing on in future. Wright has helpfully listed some steps advisers should be following to help ensure the suitability of their advice, including having a suitable fact find process; needs analysis and quantification of client risks; avoiding limiting or transferring risks to an insurer; assessment of insurance types required and sums insured; and giving appropriate product recommendations.
More news:
Financial Advice NZ's webinar on the Code of Professional Conduct is on 28 August
ASB's net profit after tax down 10% from previous year
Travis Hamilton named the New Zealand country Chair for the Million Dollar Round Table organisation
Patients across the country concerned at GP fee increases; GP’s say capitation funding insufficient
Most KiwiSaver providers have now submitted their KiwiSaver climate reports
Fidelity Life appoint new Independent Director
Scott Pickering has been appointed as an Independent Director on Fidelity Life's board.
Scott Pickering has been appointed as an Independent Director on Fidelity Life's board. Pickering has a wealth of governance and insurance experience, currently serving on the boards of IAG New Zealand, IAG Australia and Bowls New Zealand, and he was previously on the board of Chubb Life in New Zealand and Australia.
Fidelity Life Interim Chair Lindsay Smartt says,
“Scott’s passion for the insurance industry and his dedication to mentoring make him a perfect fit for Fidelity Life.
His leadership and strategic insight will be invaluable as we begin deploying our new strategic plan, and chart a course for long term success.”
More news:
Chubb makes multi-benefit discount permanent, extends 2 months’ FREE and 15% Lifetime Reward offers
Jon-Paul Hale espouses the need for Golden Life policies
The federal treasurer has approved of the sale of Suncorp Bank to ANZ
BNZ provides targeted support for customers affected by severe weather
Derek Chen has joined Strategi Group as Head of AML/CFT
ASB is teaching students how to spot fraud and scams in its new ScamWise workshop in schools
Craig Stobo appointed as chair of FMA
Craig Stobo has been appointed as the new chair of the Financial Markets Authority (FMA).
Craig Stobo has been appointed as the new chair of the Financial Markets Authority (FMA). Stobo has been appointed for a five-year term and takes over from Mark Todd, whose term expired at the end of April.
Commerce and Consumer Affairs Minister Andrew Bayly said
“Mr Stobo brings a significant depth of experience to the role, having worked as a director, diplomat, economist, and chief executive.
The FMA will benefit from Mr Stobo’s understanding of market issues and regulation, as well as the importance of informed participation from businesses and investors.”
More daily news:
The FSC brings the industry together to respond to the Contracts of Insurance Bill
Anna Schubert discusses ways AIA help advisers manage stress
AIA launch a Neurodiversity Toolkit
Southern Cross Healthcare have joined the New Zealand Disability Employers' Network
MAS is a finalist in the Ethical and Impact Investment Awards
Submissions open for the ANZIIF industry awards
Kiwibank welcome Anne Haira to the Kiwibank board
Westpac won the Corporate ESG award at the INFINZ awards
ASB has joined the Hidden Disabilities Sunflower programme
People seeking help from financial mentors jumps 40% in a year
AIA appoint new National Sales Manager, ASB
AIA have appointed Nick Brunner to the role of National Sales Manager, ASB.
AIA have appointed Nick Brunner to the role of National Sales Manager, ASB. Nick was previously the Strategic Accounts Business Development Manager at AIA NZ and has held a variety of roles over the 11 years he has worked for AIA.
AIA NZ Chief Partnership Distribution Officer Sharron Botica said
“We are incredibly proud to promote Nick into National Sales Manager, ASB. We have a long-term distribution partnership with ASB, and this role plays an important part in supporting the ASB team.
Nick’s experience within the insurance industry and proven track record of achieving excellent outcomes for AIA NZ's distribution partners makes him a fantastic fit.”
More daily news:
FSC webinar 'Māori engagement in the financial services industry' 16 June
How to spot the signs of mouth cancer
Study finds eating ultra-processed meat is linked to an increased risk of early death
FSC report finds 70% of kiwis are worried about money
The Financial Services Council’s (FSC) latest Financial Resilience Index tracker has found New Zealanders to be increasingly under financial pressure.
The Financial Services Council’s (FSC) Financial Resilience Index tracker has found New Zealanders to be increasingly under financial pressure.
The Index tracker revealed 70% of New Zealander's are worrying about money daily, weekly or monthly, the highest level since 2020 which reached 60%.
Inflation and interest rates are concerning New Zealanders, at 89.6% and 75.6% respectively.
Confidence in job security has started to fall, down to 85% from a high of 89% in 2023.
More kiwis are reporting having personal debt than last year, up 6%.
More kiwis have one month or less of savings on hand to maintain their current lifestyle should they lose their job.
60% of non-homeowners have reported meeting living expenses is somewhat or very difficult.
48.5% were very or somewhat unconfident with the overall economy at the moment. 76.4% of respondents were somewhat or very concerned about house prices.
The survey took place in March 2024, with 2002 respondents. FSC members can download the full report in the FSC members area.
More daily news:
Fidelity Life are running e-app training webinars
FAMNZ held launch party, another in Christchurch May 30
BNZ win Canstar 2024 Innovation Excellence Award for their Digital International Payments
A year in review
We look back at some of the big industry news, mergers, acquisitions, court cases and people changes in 2023.
2023 has been a difficult year for consumers and businesses alike. Conditions are similar to last year, with inflation remaining high, resulting in a continuing cost-of-living crisis, the OCR set at 5.5% and the RBNZ not ruling out a further hike next year, and housing prices only just starting to rise. How has that affected the insurance sector? Combined with an increase in regulatory red-tape tangling up banks, there has been a spike in lapse rates that very much looks like it is driven by the same forces.
NZ was badly affected by natural disasters this year, with insurers having to fork out $3.5 billion in general insurance claims for the Auckland Anniversary Weekend floods and Cyclone Gabrielle. Such heavy claims have impacted general insurers, perhaps part of the reason why Tower is looking to do a strategic review of its ownership structure.
It is this situation which greets the new National-Act-NZ First coalition government. They have outlined a 100-day plan that includes: stopping work on the Income Insurance Scheme; introducing legislation to narrow the Reserve Bank’s mandate to price stability (removing the mandate to ensure maximum sustainable employment); signing a memorandum of understanding with Waikato University to progress a third medical school; disestablishing the Māori Health Authority; taking the first steps to extend free breast cancer screening to those aged up to 74; repealing amendments to the Smokefree Environments and Regulated Products Act 1990 and regulations; and setting five major targets for the health system. National promised to roll back the Credit Contracts and Consumer Finance Act (CCCFA) and to make changes to allow kiwis to split their KiwiSaver savings between different providers during the election campaign, so we will be watching how this plays out next year. In August, then National Party Leader, Chris Luxon, told the Financial Services Council conference that it was also their intention to repeal the Financial Markets (Conduct of Institutions) Amendment Act 2022. That hasn’t explicitly made it into the coalition agreement, but may possibly be covered by the planned regulation sector reviews to which the coalition commits under the Act Policy Programme. Although regulatory relief is often welcomed by the sector, so is long-term stability, so we have found views split on the proposed changes to the conduct law.
As of March 2023, all financial advice providers needed to have obtained their level 5 certificates to continue operating this year. We wrote about the impact of this on the market and just how many financial advice providers and financial advisers there are in the September 2023 Quarterly Life and Health Sector Report.
Accuro and Unimed members voted in favour of combining operations. Approval from the Reserve Bank of New Zealand is likely to come early next year. The Lifetime Group acquired Protection Solutions. Fidelity Insurance, formerly known as Westpac Life, was integrated into the Fidelity Life Assurance Company. In March 2023 Cigna NZ changed its name to Chubb Life Insurance New Zealand Limited (Chubb Life NZ) and is now trading under the Chubb brand. nib have told customers they are planning to amalgamate, with their health insurance company ‘nib nz limited’ and their life and living insurance company ‘nib nz insurance limited’ combining to form one single company known as nib nz limited. The acquisition of Partners Life by Dai-Ichi has been made more real by the appointment of new personnel and the announcement of Naomi Ballantyne’s change of role to come in 2024. The Association of Financial Advisers (AFA) and the Financial Planning Association of Australia (FPA) have announced they will merge to form the Financial Advice Association of Australia. The Australian Competition & Consumer Commission (ACCC) denied the sale of Suncorp Bank to Australia and New Zealand Banking Group (ANZ).
There were some interesting court cases, with AMP settling with Australian advisers for A$100 million; MAS were penalised $2.1 million for making false and misleading representations to customers; Cigna was fined $3.575m for false and/or misleading representations.
There were lots of new faces joining the industry or changing roles this year.
AIA New Zealand appointed Michele Embling as an independent non-executive Director; Ben Lovelock as Chief Risk Officer; Shaun Baird as Chief Financial Officer; Maddie Sherlock as Head of Customer Operations; Andrew Anisi as Senior Manager Contact Centre & Business Solutions; Aaron Gilmore and Katie Hunter as AIA Vitality Coaches; Calvin Romeo to the role of head of ASB Partnership.
Asteron Life appointed Kirsten Young as the National Manager Adviser Distribution.
Chubb Life board chairman Steven Fyfe retired and Paul Brock took over his role as Chairman while Linley Wood joined as an Independent Director to the board. Chubb appointed Monique Ravening as its new Head of Underwriting and Erica Hamer as Chubb's new Wellington-based Business Partnership Manager. Adit Witjaksono was appointed as property manager for Australia and New Zealand.
Fidelity Life made some new appointments to key roles. David Winspear was appointed as Head of Channel Strategy, Michelle Doyle appointed as the new Head of Solutions and Kylie Oldham appointed as Senior Group Insurance Business Manager. Leigh Bennett was promoted internally to the role of Head of Underwriting and Mat Bark was appointed as Head of Channel Enablement. Giselle Baker was appointed as Head of Data and Analytics. In October, Ian Clancy acted as the Acting CEO until Campbell Mitchell was bought on board as the new CEO after Melissa Cantell resigned. Sam Kelly was appointed as Head of Regulatory Affairs.
MAS appointed Matt Harvey as Chief Distribution and Marketing Officer, Craig Ward as Chief Innovation and Digital Officer, Dan Mead as an Investment Manager.
nib appointed Stu Crowther as new National Manager – Adviser Distribution; Ian Sargeant as National Manager – Group, Partnerships & Strategy; Chris Carnall as Head of Distribution; Stan Bennetto as Group Health Business Development Manager.
Partners Life appointed Gemma Vivian as GM Adviser Engagement; Gareth Allen as Senior Manager Adviser Partnerships. Naomi Ballantyne announced her retirement from Partners Life in March 2024.
Southern Cross Healthcare appointed Mark Phillips as Chief Digital Officer; Dr Erica Whineray Kelly as Transformation Lead for Women’s Health; Jo Fair as Chief of People & Culture; Monica Goldwater as Chief Nursing Officer.
Suncorp New Zealand appointed Suraiya Phillimore-Smith as its new Chief Customer Officer. Lindsay Tanner was appointed as an independent director of the firm’s three boards.
Justine Gilliland was appointed to Unimed's board.
ASB appointed Carl Ferguson Chief Financial Officer and Rebecca James as its new Executive General Manager of Business Banking.
Westpac welcomed a new GM of Consumer Banking and Wealth, Michael Norfolk.
Kiwibank appointed Julia Jack as chief purpose and brand officer.
TSB appointed Kerry Boielle as new CEO after Donna Cooper resigned. Penny Burgess was appointed General Manager Customer Delivery; Molly Auva'a-O'Brien as General Manager Operational Excellence.
AMP appointed Blair Vernon as CFO.
Tim Grafton announced he’s stepping down as chief of the Insurance Council of New Zealand next year.
Tony Dench started as Financial Advice NZ’s interim CEO following Katrina Shanks’ departure to head up The Australian and New Zealand Institute of Insurance and Finance (ANZIIF). Sonja Barrett was appointed as Financial Advice New Zealand’s Board Member Director (Risk) and Peter Fa’afiu was appointed as an Independent Member Director on the Financial Advice NZ Board. Stefanos Boulieris joined Financial Advice NZ, communicating online webinars and the upcoming conference in 2024 and Sarah Maxwell joined as Communications and Social Media Manager.
Tim Tez and Sarah Phillips joined ANZIIF’s Board of Directors.
Anna Scott, Ana-Marie Lockyer and Campbell Mitchell all joined the board of the Financial Services Council (FSC). David Bishop was appointed to the Chief Marketing Officer role.
The FMA appointed Daniel Trinder as Executive Director – Strategy and Design; Michael Hewes as Director for Deposit Taking, Insurance and Advice; John Horner as Director of Markets, Investors and Reporting; Peter Taylor as Director Specialist Supervision and Response; Stuart Johnson as Chief Economist; Sharon Thompson as Executive Director – Transformation and Operational Delivery.
Graeme Edwards took on the role of Lifetime Group director and chairman and David Haintz was appointed as an independent chairman of Lifetime Group Holdings and its subsidiaries.
Craig Wagstaff joined New Zealand Home Loans (NZHL) as its new general manager for franchise, distribution, and marketing.
The Adviser Platform (TAP) appointed Pooja Shetty as Senior Operations Specialist and Naz Mistry as a Compliance Specialist and Adviser Support.
Some big names in the industry have retired, with David Haak, Tony Arthur, and our very own Rob Dowler retiring
Here’s to another exciting year in 2024!
Asteron Life and AIA awarded at the ANZIIF NZ Insurance Industry Awards
The Australian and New Zealand Institute of Insurance and Finance (ANZIIF) held the 11th New Zealand Insurance Industry Awards on 22 November. Asteron Life were awarded the Life Insurance Company of the Year award. AIA were recognised as winners of the Excellence in Workplace Diversity and Inclusion (D&I) and Excellence in Environmental, Social and Governance Change categories.
The Australian and New Zealand Institute of Insurance and Finance (ANZIIF) held the 11th New Zealand Insurance Industry Awards on 22 November.
Asteron Life were awarded the Life Insurance Company of the Year award. It is the fourth time they have won this award, having also won it in 2013, 2014 and 2021. Judges were impressed by Asteron Life’s Voice of Customer program, which provides insights into the customer experience; their high customer satisfaction scores overall; their policy wordings being accredited with the WriteMark standard; and attention to helping customers with affordable levels of cover. In particular the judging panel praised the variety of customer and people initiatives Asteron Life have implemented, ranging from Connected Care to Kids Cover to a Professional Supervision Programme.
AIA were recognised as winners of the Excellence in Workplace Diversity and Inclusion (D&I) and for Excellence in Environmental, Social and Governance Change. At AIA all leaders are expected to take responsibility for DE&I measures in recruitment, development, remuneration and the overall workplace environment. AIA recently achieved the Accessibility Tick and implemented a Menopause Tookit initiative. AIA has a five-pillar ESG strategy that incorporates sustainable operations, investment, health and wellbeing, people and culture and effective governance. They have committed to being net zero by 2050 and have already put in place many actions to work towards that goal, including new buildings aligning with green standards. They are committed to ethical investment and have a co-created employee wellbeing strategy in place.
More daily news:
Fidelity Life are holding three Adviser practice manager and admin summits across NZ in February
Fidelity Life are accepting registrations of interest for Adviser Edge 2024
Fidelity Life's last commission run for 2023 is 28 December
Southern Cross announce winners of the 2023 Southern Cross Health Insurance Wayfinder Awards
ASB launch two new Aggressive Funds
Pinnacle Life voted Most Trusted Online Life Insurance Company
Graeme Edwards takes on role of Lifetime Group director and chairman
FSC circulate submission template for feedback on FMA's approach to outcomes focused regulation