4 April 2022 - Minister of Commerce and Consumer Affairs, Hon David Clark, January and February 2022 diary released with the following potential financial services sector related meetings noted:

• 2 Feb 2022 – ASB (Vittoria Short, CEO; Craig Sims, Executive GM; Debbie Mills, Tribe Lead Home Ownership & Louise Griffin GM Govt Relations)
• 2 Feb 2022 – Kiwibank (Steve Jurkovich, CEO; Liz Knight (CRO); & Mike Hendriksen (CLO))
• 2 Feb 2022 – BNZ (Dan Huggins, CEO; Sam Perkins, Chief Risk Officer; Martin Elliott, GM Consumer Product Lending Domain; Dean Schmidt, Exec, Commercial Services and Responsible Business; Paul Hay, GM, Regulatory Affairs; Dirk McLeish, GM, Line 1 Control and Assurance)
• 2 Feb 2022 – Westpac (Catherine McGrath, CEO, Westpac; Clayton Cosgrove)
• 2 Feb 2022 – ANZ (Antonia Watson, CEO; Peter Parussini, GM Public, Consumer and Govt Affairs; Ben Kelleher – MD, Personal Banking; Cushla Scholfield,  Associate General Counsel; Andrew Gaukrodger  - Govt Relations & Corporate Responsibility)
• 9 Feb 2022 – IAG (Bryce Davies, Corp Relations and Amanda Whiting, CEO)
• 9 Feb 2022 – Financial Advice NZ (Heather Roy, Chair and Katrina Shanks, CEO, and John Bolton, Director)
• 10 Feb 2022 – FinCap (Ruth Smithers, CE)
• 17 Feb 2022 – Speech to FSC Future Ready Advice Summit

https://www.beehive.govt.nz/minister/hon-dr-david-clark

4 April 2022 – Government announced a new round of sanctions announced targeting Russian oligarchs. https://www.beehive.govt.nz/release/new-round-sanctions-announced-targeting-russian-oligarchs

5 April 2022 – Parliament completed the first reading of the Fair Pay Agreements Bill, referred to the Education and Workforce Select Committee with report back due by 5 Oct 2022.

https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_121328/fair-pay-agreements-bill

https://www.beehive.govt.nz/release/everyday-workers-take-centre-stage-fpas-bill-passes-first-reading

6 April 2022 – IRD advised that a new FATCA Excel file template is now available for download via myIR.

6 April 2022 – Commission for Financial Capability released data about KiwiSaver balances across age groups and gender, with the data collected by Melville Jessup Weaver actuaries on behalf of the Commission. https://retirement.govt.nz/news/latest-news/new-data-reveals-for-the-first-time-largest-breakdown-of-kiwisaver-balances-across-all-ages-and-genders/

6 April 2022 – Privacy Commissioner invited submissions on a proposal to amend the Health Information Privacy Code 2020 to align it to the Pae Ora (Healthy Futures) Bill, with submissions closing on 4 May 2022. https://privacy.org.nz/publications/statements-media-releases/submissions-invited-on-proposal-to-amend-the-health-information-privacy-code-2020-to-align-it-to-the-pae-ora-healthy-futures-bill/

Introduction

We continually review the ratings of all our benefits and have renamed “Occupational Retraining” to “Vocational & Rehabilitation Support”. Our intention with this review is to make clearer the difference between the features in readiness for more detailed research reports that are in development. Better describing the current variations and recognising that early intervention has the ability to prevent a client’s disability from escalating further and reduces more severe complications that may lead to a long-term claim – a positive outcome for the client, insurer, and employee.

Please find our proposed sub-items below.

Proposed sub-items 

Notes

The monthly payment limit differs between insurers, however the necessity to offset is a similar feature. The major insurers (aside from Fidelity) offer coverage for Childcare Assistance, which is likely to be claimed more often than some of the other expenses. Partners Life receives a deduction for “benefit not available for all payment periods” as they do not offer their “Vocational and Retraining benefit” for payment periods which are less than 2 years. Similarly, AIA reduces their monthly payment to 6 months with 1, 2 or 5 year benefit periods. Fidelity is the only insurer that will not pay out the full benefit until the insured has returned to paid work (minimum of 20 hours). AIA, ASB and Partners Life are the only insurers that clearly offer assistance either during or after the waiting period - an important feature, as early intervention can significantly affect the length of a claim. 

Your feedback

We value getting your feedback on how these wordings are being applied to claims you may be aware of. Please email us with details of any recent claims to help us update our understanding.

Doreen Dutt, Research Analyst, Quality Product Research Limited, researcher@qpresearch.co.nz

Introduction

The World Health Organisation states that 130 different types of brain tumours exist. A benign brain tumour is a non-cancerous growth in a distinct area of the brain. The survival rates for patients with benign brain tumours are higher than others, however this depends on the size and location of the tumour within the brain.

Proposed sub-items

Notes

There are some noticeable differences between insurers such as whether partials exist, or if the spinal cord or tumour on the pituitary gland is covered. We have tried to make the sub-items clearly demonstrate the variation between insurers.

Why is this important?

Although QPRs weighting of this item is low, it would be of high interest to those that have a family history of brain cancers. With a lot of insurers now having specialised cancer products we would like to ensure that our rating is relevant. 

Your feedback

We value getting your feedback on how these wordings are being applied to claims you may be aware of. Please email us with details of any recent claims to help us update our understanding.

Doreen Dutt, Research Analyst, Quality Product Research Limited, researcher@qpresearch.co.nz

Partners Life will acquire BNZ Life from NAB (ASX:NAB) for $290 million. 

Congratulations to Partners Life on the acquisition and NAB on the disposal. This continues the trend in the industry for bancassurers to be sold into specialist insurance company ownership. That process began with AIA's acquisition of Sovereign and was continued by Cigna's acquisition of OnePath Life. 

Naomi Ballantyne's comment (see the interest.co.nz story below) on the acquisition covers the territory well highlighting aspects of Partners Life's product management that will benefit BNZ Life customers. 

A couple of useful links for more information: additional links added 17 December

https://www.interest.co.nz/banking/108443/bnzs-parent-national-australia-bank-agrees-sell-bnz-life-partners-life-nz290-million

https://kalkinemedia.com/au/news/stock-market/nab-asxnab-to-sell-bnz-life-to-partners-life-for-290-million

https://www.goodreturns.co.nz/article/976517972/partners-snares-bnz-life.html 

https://company-announcements.afr.com/asx/nab/c4a23f9e-3f52-11eb-8213-de18689b0679.pdf

https://player.vimeo.com/video/491351901 - the video announcement by Naomi Ballantyne, CEO, Partners Life

The National Australia Bank (NAB) announced that BNZ Life will be put up for sale. NAB is currently searching for a buyer. The search is on after NAB denied that it was selling BNZ Life to Partners Life last year. That looks like it was speculation, as the Australian Financial Review now reports a possible process. BNZ Life currently makes up 4% of the New Zealand life insurance market. A report by the Australian Financial Review has stated that NAB is currently in negotiation. From the AFR and InsuranceBusinessMag articles:

“The National Australia Bank (NAB), the parent company of BNZ, is selling another life insurance business four years after selling its Australian insurer MLC Life to Nippon Life Insurance Company.

 

Last year, BNZ denied reports regarding the sale of NAB’s sub-scale New Zealand life insurance business, BNZ Life, to Partners Life.

 

But now, the Australian Financial Review reports that NAB is looking for a buyer for BNZ Life across the Tasman to tidy up its portfolio. The life insurance business is an estimated 4% of New Zealand’s life insurance pool in 2019.

 

NAB is already in late-stage talks with at least one potential buyer – with AIA, Resolution Life (formerly AMP Life), and Partners Life most likely to get the deal, the report suggested.” Click here to read more

In other news

Advisers expected to be "very busy" as economic recovery continues

5 myths about life insurance- what the young workforce wants to know

Which advisers will win the future?

Current economic conditions are accelerating a recent trend in banking - a focus on core services - as evidence, we offer this series of announcements:

• Some of the banks have sold or are selling other insurance operations. For example, see this story from yesterday https://www.afr.com/street-talk/nab-life-insurance-retreat-set-to-claim-kiwi-arm-bnz-life-20201021-p56724
• And this story from last month about General Insurance https://www.insurancebusinessmag.com/nz/news/breaking-news/westpac-racing-against-cba-in-sale-of-general-insurance-unit--report-233779.aspx
• Then the probable sale of Westpac’s Wealth unit to Forsyth Barr https://investmentnews.co.nz/investment-news/westpac-nz-flags-retail-advice-sale-to-forsyth-barr/
• ANZ selling its finance company arm, UDC. https://www.interest.co.nz/banking/105317/anz-announces-sale-asset-financier-udc-japans-shinsei-bank-which-says-udc-will

Alongside this, traditional branch services are being cut or slimmed down. This shift to digital was given a further shove by lockdowns so the time is right to re-appraise the value of each branch in the network. In addition to that, the value of each service in the branch is being reconsidered as well. With the decision by ANZ to withdraw from offering cash foreign exchange services being announced: https://www.stuff.co.nz/business/123131192/anz-to-stop-offering-foreign-currency-citing-drop-in-demand-due-to-covid19 

Although perhaps this is not just about economic conditions, but also competitive ones. Digital disruption is coming to the world of banking. A slew of online and consumer lenders has been grabbing attention (and high valuations) on the ASX. More challengers are likely to come. This is prompting a strategic rethink by several banks. The regulatory environment is shifting as well, creating more space for the change:

• And the Westpac/Afterpay collaboration allowing Afterpay to offer transaction and savings accounts http://www.sharechat.co.nz/article/4ad7e8d5/westpac-and-afterpay-announce-partnership.html
• We have already referenced between us the Australian change to responsible lending laws being considered and reported on Good Returns. https://www.goodreturns.co.nz/article/976517550/australia-scraps-responsible-lending-laws.html

The Australian Financial Review carries this report suggesting that NAB has BNZ Life up for sale: link. 

Financial Advice New Zealand have voiced their approval of the new disclosure regulations that were announced by MBIE on 25 June 2020. Katrina Shanks has said that new regulations mirror what Financial Advice outlined in their CoFI submission.

“Financial Advice NZ chief executive Katrina Shanks said the new rules had picked up many of the points made in the association's submission.

“The focus of the sector during this process was to ensure the right balance between good consumer outcomes and a financial advice sector which isn’t encumbered by unreasonable red tape and adverse outcomes.

“We support regulations around disclosure made to clients – including on conflicts of interest, commissions and other incentives and disciplinary issues.”

The need for disclosure being limited to adviser fees, the products they offer advice on, their conflicts of interest, commission they receive, and how clients can contact dispute resolution services is something Financial Advice is please about.

““However, we are pleased to see a change from the draft disclosure requirements that now only requires disclosure of these matters when they would likely materially influence a client’s decision. This is something we strongly recommended in our submission to ensure disclosures were meaningful and not overwhelming for consumers.

“We were concerned the draft regulations required disclosure of product fees charged by unrelated third parties (e.g. insurance premiums) so the removal of the requirement to disclose fees for ‘acting on the advice’ was a sensible move."” Click here to read more

In other news:

FSC: FSC 2020 Awards - Nominations Open

FMA: FMA takes CLSAP NZ to court over alleged anti-laundering breaches

Westpac: Westpac to launch carbon footprint tracker

BNZ: BNZ launches banking support for domestic, economic abuse survivors

Bernie McCrea has said that Newpark is looking into introducing shareholders as well as private capital investors to help Newpark achieve long-term goals. Bernie has said that gaining funding from investors is a better alternative than accumulating debt.

“Chairman Bernie McCrea said it was interested in institutional shareholders who might invest in the business to help it achieve its goals. It was also open to investments from private capital investors who might have money in the bank earning little interest.

“People who have an interest in financial services but are earning zero at the moment and want to diversify … we are an option for them.

In other news:

Newpark has given members a choice of four options for their ongoing relationship with the group.

Australia: Former celebrity financial adviser charged with dishonest conduct

Here are five ways to avoid looming 'retirement time-bomb'

Advisers urged to “get their cyber-security sorted”

IFSO: IFSO Scheme names two new commissioners

BNZ to put all staff through courses

We have uploaded the latest product research database (version 12_7) onto Quotemonster and distributed it to subscribers. This version includes the following changes:

• Asteron Life policy wording added and rating changes applied effective 30.09.2019
• BNZ LifeCare 01.04.2019 policy wording added and applied rating changes
• Unimed Hospital Select 01.09.2019 policy wording added and applied rating changes
• Fidelity Trauma Multi 08.09.2019 wording added and applied rating changes
• AA Life and Funeral cover 01.08.2019 wording added and applied rating changes
• Kiwibank Home Loan and Life & Living 01.08.2019 wording added and applied rating changes