RBNZ has announced that it will be relaunching its review of the Insurance (Prudential Supervision) Act next month. The review comes after an industry consultation begun in 2017. The same consultation was set to continue earlier this year but was delayed as a result of COVID-19 related regulatory relief being implemented. Geoff Bascand, Deputy Governor and General Manager of Financial Stability, has said that maintaining an efficient insurance sector is important as customers expect to insure their assets and themselves.

“The Reserve Bank – Te Pūtea Matua will be relaunching the review of the Insurance (Prudential Supervision) Act (IPSA) in October.

The review began with an industry consultation in 2017 and was set to resume in March this year, but was delayed in-line with the regulatory relief implemented to free up the Reserve Bank and industry participants to support our economy and tackle the challenges created by COVID-19.

“Maintaining a sound and efficient insurance sector is important for New Zealand,” Deputy Governor and General Manager of Financial Stability Geoff Bascand says.

“Customers expect to be able to insure their homes and possessions and obtain life and disability insurance, and businesses utilise a range of insurance products to protect their assets and business interruption exposures,” Mr Bascand said in an address to the Insurance Council today.”

In 2010 the original Act was enacted to ensure that New Zealand was up-to-date with international standards for prudential regulation. The reason behind the enactment has not changed. The first Christchurch earthquake influenced that Act. International Monetary Fund assessment in 2017 and the independent review of Reserve Bank Supervision of CBL in 2019 have also influenced the Act. A policy paper is set to be published early next month and will detail the resumption, objectives topics, and timetable.

“The original IPSA was enacted in September 2010 to bring New Zealand up-to-date with international standards for prudential regulation. The reasons for enacting IPSA have not changed, and it is good regulatory practice to review legislation to ensure it is working effectively and update it for the lessons learned over the past 10 years, Mr Bascand says

The first Canterbury earthquake, for example, devastatingly occurred just a few days before the enactment of IPSA, resulting in intense supervisory activity and application of IPSA provisions over many years.

Other recent experiences that will help inform the IPSA review include an International Monetary Fund assessment in 2017 and the independent review of Reserve Bank Supervision of CBL in 2019. Further background and context has been provided by the joint Reserve Bank/Financial Markets Authority review into insurer conduct and culture, and the Thematic Review of the Appointed Actuary regime. The associated Solvency Standards need to be updated for impending changes to accounting standards and the review will consider adopting a mandatory buffer above the minimum solvency level.

A policy paper outlining the of the IPSA Review, and objectives and topics to be covered, will be published in early October. It will provide an updated overview explaining objectives, topics to be covered and an indicative timetable. At the same time, we will also release a consultation paper on principles to guide the review of Solvency Standards.” Click here to read more

 In other news

Accuro: Mel Stevens appointed as People and Culture manager

AIA: AIA has earned a place in the Hang Seng Corporate Sustainability Index, receiving an A+ rating and increasing its overall score

FMA: Pegasus Markets And Director Found Guilty Of Abusing FSPR

Lance Walker has been appointed the new CEO of Accuro health insurance. LAnce will join Accuro in June after leaving WellingtonNZ. Walker has previously been CEO for Cigna Life Insurance and Fly Buys.

Click here to read more. 

Geoff Annals has announced his retirement from CEO at Accuro stating “I have reached retirement age and am planning to spend more time with my family and particularly my two new grandchildren, including the latest arrival on the other side of the world,”. Gavin Rutherford will step up as the interim CEO.

Erica Hodgson, who has experience in the mental health sector, was elected as a new member of the board, replacing Pat Curry. Accuro deputy chair Marion Guy was re-elected to the board by the firm’s membership for a second three-year term. Toni Ferrier is stepping down from the Accuro board to serve as the chief executive officer of AIG New Zealand.

Press release from Accuro:

Accuro launches free mental health solution for more than 15,000 members

12 September 2019, Wellington

Easy and quick access to mental health diagnosis and support has been added to the range of services that Kiwis can call on from Accuro Health Insurance.

About 47% of New Zealanders will experience a mental illness and/or addiction at some time in their lives, with one in five people affected in any one year*.

“For many, issues such as depression or anxiety really affect their lives. Yet a lot of people don’t seek help or have issues with their treatment plan.” says Geoff Annals, CEO of Accuro Health Insurance, a not-for-profit health insurer based in Wellington. “The Government announced significant mental health funding this year, yet access to specialists can still be very limited, with long wait times, and can also be very expensive,”

“So Accuro is launching Mental Health Navigator in partnership with Best Doctors. First launched in Canada in 2016, Mental Health Navigator has since launched in Australia and will soon be available in Europe. Accuro members are amongst the first New Zealanders to have access to this service. Mental Health Navigator is completely free for Accuro members to use alongside their specialist insurance cover, which includes a $500 benefit towards further consultations with NZ registered psychologists and psychiatrists, should follow up be required.

The Mental Health Navigator is now available, for everyone covered by an Accuro Specialist Plan, aged 18+. It’s designed to break down barriers by providing fast, comprehensive and confidential access to a team of mental health professionals. A call to the Mental Health Navigator number will be answered by a specialist mental health nurse and followed up within 10-14 days by a video call with specialist psychologists and psychiatrists. This team can diagnose mental health conditions, develop a treatment plan, or act as a valuable second opinion. The mental health nurse then provides follow up support over the next 6-12 months.

“Fast access to diagnosis and treatment is an important part of people getting better before they get worse, and with typical wait times of two to six months through the public system, we feel access within two weeks can make a dramatic difference to a person’s wellbeing,” says Geoff Annals. “Mental Health Navigator is free, and people can access the service without having to leave their own home, an important detail for members who might be fearful of hospital appointments, or have trouble travelling to them.”

“This is the first time such a quick, easy and professional mental health support service has been available to New Zealanders through health insurance. The Accuro Mental Health Navigator joins Best Doctors, SkinVision, our wellbeing Health Hub and bowel cancer screening kits as active benefits that Accuro offers its members in supporting their health before they might need to call us. We call it Active Insurance,” adds Geoff Annals.

ENDS

In a partnership with Synergy Health, Accuro has launched NZ's first free wellbeing programme 'Health Hub'. When members sign up to Health Hub they complete a questionnaire which sets a benchmark on different aspects of their lifestyle. The programme then provides users with access to support, customised information and resources to help improve their health. 

“We want to go beyond being a passive insurer by working proactively with our members to help them stay healthy and well,” Accuro Health Insurance Geoff Annals said. Click here to read more. 

Accuro have announced premium changes effective 1 September. They have also reduced their direct debit discount from 3% to 2%.

The new rates will be live on their quote software from the 1st of August, due to the quotes we generate being valid for 30 days. 

The latest medical insurance premium comparison database is version 7_3. If you are a corporate subscriber you should have received your copy by now. It includes changes:

• Update nib rates effective 1/7/19
• Update Southern Cross rates effective 1/7/19
• Change Accuro rates for ages under 21 to dependent rate to make it consistent with other providers

The new medical insurance premium comparison is now on Tableau server and in the Premium Comparison Dropbox. It has the following changes:

• Update to Partners Life rates effective 31/12/18.
• Update to nib rates effective 1/1/19.
• Update to Sovereign policy fee effective 1/1/19
• Update to Accuro rates effective 1/3/19 (but being publicly quoted from 31/1/19)

Accuro have a price change on their SmartCare and SmartCare+ range effective from 1 March 2019. The rates will be slightly increasing by about 2% and will be reflected on Accuro's website from the 31st of January due to quotes being valid for 30 days.

Recently the Consumer Magazine released its latest health insurance report. Consumer identified Accuro as having significantly higher proportion of happy customers than its six competitors - congratulation to Accuro. Click here to read more.