Conduct future contrasts
Modelling change in the advice market through transition

FMA-RBNZ report update part of the process towards new conduct law

The FMA-RBNZ update on the review of conduct in the life insurance sector requires further discussion and commentary - but for now it obviously deserves at least this link to the full media release

Areas of particular note include: 

  • The treatment of existing customers - references to 75,000 issues must relate to them. 
  • Sales incentives and commissions - in particular the comment in this review about high up-front commissions.

Legal and regulatory uncertainty is headwind, as are concerns about what levels of commissions are likely to be acceptable.That explains, if not excuses, some insurers' challenges in responding to these issues. I will write more for subscribers to the quarterly life and health sector review. 

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