Budget allocates $60 million to establishment of NZIIS and delays implementation to 2024, and other news

On 19 May Finance Minister Grant Robertson presented the Government’s Wellbeing Budget, allocating $60 million to support the continuing development of the New Zealand Income Insurance Scheme (NZIIS).

The amount will fund the Accident Compensation Corporation (ACC) to undertake preliminary work to establish the systems and operational processes for a new levy-funded income insurance scheme.

The proposed implementation has also been pushed back from 2023, with Robertson saying

“There is considerable work to get the scheme up and running, and it is now expected that it will be operational in 2024.”

Insurance Business spoke to Deloitte NZ tax partner Robyn Walker, who said

“The sensible decision to not rush this through means that the New Zealand Income Insurance Scheme may become a significant matter for voters to evaluate as we head into Election 2023.”

More daily news:

Dispute before ombudsman about income earned while on claim for income protection insurance policy

Members of TripleA Association to vote whether to wind up association

Entries for Insurance Business's Top Insurance Employers 2022 close 27 May

In Finder’s RBNZ survey, 100% of experts predict OCR increase in May

And a bit of light humour from xkcd here

Financial Advice announce 2022 conference

Financial Advice New Zeeland has launched Ignite, the 2022 conference. The conference will be a two day event held on 6-7 September at Te Pae Christchurch.

Speakers include:

Keynote Speakers

  • Chris Riddell, Futurist. Optimist.
  • Craig Hudson, Managing Director Xero Aotearoa
  • Kamal Sarma, Expert on human connection

Lightning Speakers

  • Samantha Barrass, Chief Executive FMA
  • Victoria Devine, Multi award-winning financial adviser and founder and host of ‘She’s on the Money’ podcast
  • Tony Laker, Laker House of Travel
  • Sir Ian Taylor, one of New Zealand’s foremost technology innovators

Other speakers

  • Jonathan Pain, Global Economics Expert

Tools for your Business workshop speakers

  • Matt Church, Founder of Thought Leaders and The Leadership Landscape
  • Adrian Pickstock, Director Quad Coaching
  • Ekant Veer, Professor of Marketing, University of Canterbury
  • Shefali Pawar, Senior Research Officer, Te Ngira: Institute for Population Research
  • Gilbert Enoka, All Blacks Manager and Mental Skills Coach


  • Michael Kitces

Click here to register

“We are so excited to launch our much anticipated 2022 conference - IGNITE. An action packed two-day financial services sector event that will ignite what drives you and challenge you to take risks, explore new opportunities, step outside the box and do things differently.

Connect in person

After all of the lockdowns and restrictions, we are so excited to be able to get together again. There are plenty of networking opportunities for both attendees and sponsors, all under the one roof, at the new and vibrant Te Pae Convention Centre in Christchurch.

A programme tailored for your business

The past two years have taught us that there is no more 'business as usual' - we are living in unprecedented times. And with change and disruption, comes new opportunities and transformation. Our programme has been designed to get you and your business ready and energised to meet the challenges of today, thrive in this new 'normal' and feeling excited about the future.

High profile speakers

Our speaker line-up from New Zealand and Australia bring a wealth of experience, knowledge and energy to their keynotes and workshops, covering everything from the big picture stuff - global trends, reinvented business, and leadership in the new world, to tailored content - building a business beyond trust, maximising your brand, mental resilience - and much more!”

Legal and regulatory update for the life and health insurance sector

12 Apr 2021 – RBNZ advised that it is ceasing to publish certain weekly banking customer lending metrics, as it also resumes publishing certain insurance financial statistics. https://www.rbnz.govt.nz/statistics/statistics-news-and-updates

12-13 Apr 2021 - Financial Sector (Climate-related Disclosures and Other Matters) Amendment bill introduced into Parliament, intended to amend the Financial Markets Conduct Act 2013, the Financial Reporting Act 2013, and the Public Audit Act 2001 by implementing a single broad policy to broaden non-financial reporting by requiring and supporting the making of climate-related disclosures by certain FMC reporting entities and supporting related matters. Relevant web links are https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_109905/financial-sector-climate-related-disclosures-and-other and https://www.beehive.govt.nz/release/nz-becomes-first-world-climate-reporting

13 Apr 2021 – FMA provided a breakdown of financial advice providers in the new regime. https://www.fma.govt.nz/news-and-resources/media-releases/breakdown-fa-providers/


13 Apr 2021 – RBNZ announced the establishment of a new standalone Enforcement Department to promote confidence in compliance across regulated sectors. The Enforcement Department is operationally separate from the Bank’s Supervision team, but the two will work closely together to achieve the Bank’s compliance goals. https://mailchi.mp/rbnz.govt.nz/reserve-bank-launches-new-enforcement-department?e=1769bcd465

Legal and regulatory update for the life and health insurance sector

25 Sept 2020 – Good Returns reports that the Australian government is set to axe responsible lending laws. https://www.goodreturns.co.nz/article/976517550/australia-to-scrap-responsible-lending-laws.html

23 Sept 2020 – IRD advised that the Public Guidance Work Programme 2020-21 has now been finalised. https://www.taxtechnical.ird.govt.nz/-/media/project/ir/tt/pdfs/consultations/work-programmes/public-rulings-work-programme-2020-2021.pdf

24 Sept 2020 – FMA released a report on its supervision activities over the past 18 months. https://www.fma.govt.nz/news-and-resources/media-releases/fma-issues-supervision-report-2020/


The development in Australia where responsible lending rules are being axed is of considerable interest. In specific terms I do not know enough about the details of the Australian lending legal and regulatory framework to comment. In general terms there are some good questions to be asked about what rules are fit for purpose in an environment with very low interest rates for borrowing and with other consumer protections and processes available. I shall take a look at that development with some interest. Given the involvement of our current Minister of Commerce and his work on predatory lending practices I doubt this is going to appear on his agenda. 

Legal and regulatory news for the life and health insurance sector

25 Aug 2020 – NZX decided to halt trading early as it “experienced a volumetric DDoS (distributed denial of service) attack from offshore, which impacted NZX system connectivity.”

26 Aug 2020 - ANZ Investment Services (New Zealand) Ltd announced it will stop accepting new investment into the Bonus Bonds Scheme and, following two further prize draws, will wind up the scheme over the next year.


26 Aug 2020 – RBNZ advised that the Ministry of Health granted an exemption to enable registered banks and licensed non-bank deposit takers to carry out critical financial services at Alert Level 3.


26 Aug 2020 – Stats NZ reported that incomes fell for the first time since records started in 1998.


Treasury economic impact resources for planning purposes

In addition to the recent post on economic commentary, here is the Treasury main page for COVID-19 impacts on the economy and related papers. https://treasury.govt.nz/information-and-services/new-zealand-economy/covid-19-economic-response/commentary 

Clients that subscribe to the quarterly life and health review and quarterly market data can expect to get an interim paper on forecasting and planning methodology next week. 

Level Three Trading Update

We are continuing to work in a distributed fashion - all our people will be working from home unless it is absolutely essential to visit the office in order to maintain the maximum social distancing. If you need to contact any of us, me, Fran, Jerusalem, Kelly, or Rob then please email or call our mobiles.

Although, in order to support our local businesses, I will be popping out for a walk to my favourite coffee spot to pick up a takeaway coffee later this morning. 

Some Economic Outlook Resources

Swiss Re's paper offers a good global insight - thanks to Financial Advice New Zealand for picking up on this one. They predict a deep but relatively short recession in comparison to the global financial crisis. "Short" is a relative term, as in many markets worse affected by ours, that recession lasted years. They are worried about inflation due to the massive stimulus being applied to western economies. 

When The Economist wrote this article about the importance of a hedge against sudden inflation (published in January, back when COVID-19 was barely known) I did not really think this was the biggest risk - quite the reverse. It now looks to be wise indeed. 

Tony Alexander's articles provide a view laced with plenty of local data to help bring it all back home to our current situation. He's an optimist, but perhaps not as optimistic as Vittoria Shortt, ASB Bank CEO, who was reported in the NZ Herald as saying that the economy will be back up to about 80% of its capacity in level three - although when you scan her quoted statements in the article they are all more conservative than that.