Cigna has announced that the promotional multi-benefit discount will become a permanent offer. Cigna has highlighted that since the multi-benefit discount promotion launched last September, Cigna has received positive feedback. The multi-benefit discount is being offered to new customers as well as existing customers who were quoted and issued policies from 15 September 2020 to 17 October 2021. The multi-benefit discount can be used alongside the current good things come in twos offer that is available to advisers until 17 December.

“We’ve made our multi-benefit discount permanent and we’ve made it even better.

Since its release in September last year, we’ve had incredible feedback from the market on the difference the discount has made for customers taking out new cover.

 

Not only have we removed the age eligibility criteria, the permanent discount on Assurance Extra will now provide a 5% discount to customers taking Life Cover with one other qualifying cover and a 7% discount to those taking Life Cover with two other qualifying covers. The discount will be offered to all new business quoted and issued after 18 October 2021.

 

The discount can also be applied in conjunction with our Good things come in twos offer which is available to Advisers until 17 December 2021. This means not only will your new customers receive a multi-benefit discount on their cover, but they’ll also get the first two months of their cover, on us.  

 

The improved multi-benefit discount is not only for new customers, we’ll be passing it back to policies quoted and issued from 15 September 2020 to 17 October 2021 that were previously eligible for a discount under our campaign. The new levels will apply at their next policy anniversary.

 

This is just one of the ways we’re supporting customers with good value insurance solutions. For more information on the permanent discount visit cigna.co.nz/multi-benefit-discount”

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Cigna: definitions and benefits across our Assurance Extra, Business Assurance, Business Extra and Agribusiness Extra Covers have been updated

Cigna: Business Assurance policy wording has been simplified and is now in WriteMark-approved plain English

FSC: ReGenerations Reimagined kicked off on Tuesday

Financial Advice: spots available on the ethics courses

Fidelity Life has announced the creation of the Solutions and Services team. The team will be led by Trecia Brown in her new role of Head of Solutions and Services. The Solutions and Services team will be responsible for delivering advice solutions, professional development, and the Building Better Businesses programme.

“Fidelity Life is transforming its support for advisers with the creation of a new team delivering solutions across the areas of advice (including advice-tech) and professional development, as well as an expansion of the company’s market-leading Building Better Businesses programme.

 

The new Solutions and Services team will be headed by the widely experienced Trecia Brown. Drawing on her 30-year career in financial services, Trecia steps up from her current position as Head of Professional Development to become Head of Solutions and Services.

 

Fidelity Life Chief Sales and Service Officer Bronwyn Kirwan says Fidelity Life is on a mission to deliver best-in-market support to advisers.

 

“We’re making great progress with our customer-led transformation, and that includes expanding our adviser and partner propositions so together we can help more New Zealanders get the benefits of insurance protection. 

 

“Our new Solutions and Services team recognises advisers’ needs are constantly evolving as the broader business environment changes. Taking our cues from a range of stakeholders including customers, advisers and regulators, as well as from emerging technologies, our intention is to help advisers stay one step ahead,” says Bronwyn.

 

One of the first cabs off the rank is a new video series specifically for financial advice businesses and designed in conjunction with well-known business and leadership coach Jennifer Myers.  

 

“Working on your business is just as important as working in it, and this new video series will help advisers build and maintain a resilient business,” says Trecia. 

 

“As well as covering key topics like setting business goals, identifying target markets, and building your personal brand, we also look at finessing advisers’ softer skills which are often overlooked as an essential ingredient to running a successful business.”

 

Meanwhile, Fidelity Life’s Building Better Businesses programme is also set for further expansion, with new modules in the pipeline including business diagnostics, behavioural economics and benchmarking.

 

Today’s announcement follows the unveiling of Fidelity Life’s new look Strategic Alliances team last week and continues the momentum of the firm’s customer-led transformation.”

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Cigna: pay later option available on eApp for customers that have been referred for further underwriting

Financial Advice: Financial Advice submitted on the Advertising Standards Authority Consultation on the new draft Financial Advertising Code

FSC: 5 sleeps until ReGenerations Reimagined

October 15 is Global Handwashing Day

World Food Day will be on 16 October 

World Osteoporosis Day will be on 20 October

Fidelity Life has announced that several appointments have been made as part of the insurer’s transformation strategy. Melanie Beattie joins Fidelity Life as the new Head of Strategic Alliances. Sean Craigen has been appointed as the Strategic Alliance Manager – Bank and Brands. Mike Whitehead leaves his roles as a BDM to become the Strategic Alliance Manager – Advice and Corporate. In their roles, Sean and Mike will report to Melanie. Bronwyn Kirwan has said that the new appointments will exemplify Fidelity Life’s commitment to protect more New Zealanders and increase the value proposition to partners.

“The pace of Fidelity Life’s transformation continues, with a number of key appointments to its new-look strategic alliances team boosting the firm’s partner proposition.

The appointments of Melanie Beattie (Head of Strategic Alliances), Sean Craigen (Strategic Alliance Manager – Bank and Brands) and Mike Whitehead (Strategic Alliance Manager – Advice and Corporate) were announced by Fidelity Life Chief Sales and Service Officer Bronwyn Kirwan today.

“These appointments show we’re lifting our value proposition to our partners. Our transformation includes broadening our channel mix to help us protect even more New Zealanders, and we see so much opportunity to collaborate with like-minded organisations in delivering modern financial services to New Zealanders.

“Conversations with partners about commissions are now giving way to conversations about customers and strategy, helping us form a strategic roadmap to achieve a shared ambition. We’re excited about strategic relationships with significant advice and customer-led organisations and these new appointments are the first phase of investing to be an outstanding partner”, says Bronwyn.

Fidelity Life’s strategic partners include Farmers Mutual Group (FMG) and New Zealand Home Loans (NZHL), and it recently announced a new 15-year partnership with Westpac NZ as part of the proposed acquisition of Westpac Life.

The new appointments.

Melanie Beattie joins Fidelity Life in the newly created role of Head of Strategic Alliances, spearheading a new-look team and shifting gears with the firm’s strategic partnering approach.

Melanie spent the formative years of her career in the UK starting and selling a number of businesses in the energy sector before making a switch to corporate – initially with IBM, then with EY as Head of Market Development. She became Head of Strategic Partnerships at ASB and led their partnership practice across corporate, commercial, SME, and rural/primary sectors. In 2020 she took a up new role at tech start up Trade Window as Head of Global Ecosystems.

Reporting to Melanie, Sean Craigen takes up the role of Strategic Alliance Manager – Bank and Brands. Sean is currently at BNZ leading their general insurance product portfolio and compliance roll out with third parties. Prior to this Sean worked at IAG in a number of roles including leadership of their future partnerships, ventures and innovation team.

Also reporting to Melanie, Mike Whitehead is taking up the new role of Strategic Alliance Manager – Advice and Corporate. Mike’s currently a Fidelity Life Business Manager in the Auckland region and prior to joining Fidelity Life, he held a number of roles at BNZ in commercialisation, area management, franchise management and asset financing. His background also includes time as a Ray White auctioneer and salesperson, and a 14-year stint as a stock agent and auctioneer with Wrightson’s. Click here to read more

Financial Advice: The Be Inspired, Be Energised conference will now be online. Pricing for the two day online conference reduced to $395 +GST. The conference will be recorded and available for those that have registered.

RBNZ: Christian Hawkesby has been appointed as Deputy Governor

nib has announced that Clearhead has launched a new content series in partnership with former All Black and Clearhead ambassador Nehe Milner-Skudder. The initiative is designed to support the wellbeing of most at-risk communities and in honour of Mental Health Awareness Week. Clearhead aim to open up a dialogue about mental wellbeing among Maori communities. Throughout the series, Milner-Skudder shares his mental health story and strategies that helped him in his journey. Milner-Skudder has noted that he is proud to be part of the initiative and hopes that his story helps more Māori to seek help when they need it.

“In honour of Mental Health Awareness Week (MHAW) and to better support the wellbeing of our most at-risk communities, Kiwi digital mental health company, Clearhead, has today released further resources to provide more tailored support for Māori, in partnership with nib foundation.

Alongside a suite of culturally appropriate upgrades across its website, Clearhead has launched a new content series with former All Black and Clearhead ambassador, Nehe Milner-Skudder (Ngāti Porou, Tapuika), with the hope of encouraging more open conversation about mental health across Māori communities.

The content series features Milner-Skudder sharing details of his own mental health journey, and the tips and strategies that helped him overcome his struggles – including the importance of reaching out to others for support.

Clearhead CEO, Dr Angela Lim says that while Māori populations are consistently over-represented in Kiwi suicide statistics and are twice as likely to experience mental health issues than non-Māori, most of the resources available in New Zealand are not designed to address these inequities.

“It’s important to note that the loss of indigenous culture and heritage can lead to challenges with identity, confidence, self-esteem, and a sense of belonging. We know from our own user data that Māori are 75% more likely to feel as though they don’t belong – and some of that comes down to not having adequate culturally responsive wellbeing support,” Dr Lim said.

“We wanted to help bridge that gap and respond to the feedback of our Māori users, who want to see content that looks and sounds like them to improve the chances of the material resonating,” she said. 

Clearhead ambassador, Nehe Milner-Skudder, says he’s proud to lend his support to the cause, and hopes that by sharing his story, more Kiwis (and in particular more Māori) will feel more comfortable to reach out when in need.

 “I used to see vulnerability as a weakness, but I’ve grown to understand that it leads to great strength. I think that’s a difficult mental obstacle to overcome, especially as a proud Māori male. What I hope people get from me sharing my story, is that you’re never alone in this battle and that there are resources and tools out there to help anyone who’s struggling,” he added.

The series of 20 videos sharing Milner-Skudder’s journey will be released via Clearhead’s Facebook Page during MHAW and will sit permanently on Clearhead’s website. Clearhead’s Māori-friendly website refresh is also live from today and now incorporates Kiwiana designs and includes a more holistic wellbeing journey, taking into consideration Māori models of care such as Manaakitanga – a principle that captures the idea of caring, supporting and uplifting others.

nib foundation Executive Officer, Amy Tribe, says “While mental illness doesn’t discriminate and can affect anyone, at any stage in their life, we know Māori are 30% more likely go on with these conditions undiagnosed compared to other ethnic groups*.

By funding the development of these resources through our foundation, we hope to help reduce some of the stigma around seeking support and promote Māori feeling more comfortable and empowered to seek help if and when it’s needed,” said Mrs Tribe.”

 

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FMA: Momentum builds in KiwiSaver as scheme reaches $81 billion

The details of a judgment in a case brought by the FMA highlight the importance of good governance and director education. In the details below I draw your attention particularly to the comments by the judge in the last five paragraphs in the quoted section below.

CLSAP Premium New Zealand Limited, formerly known as KVB Kunlun, has been ordered by the FMA to pay $770,000 for anti-money laundering breaches under the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act. The FMA made a case in the Auckland High Court in June claiming that CLSAP NZ didn’t comply with its obligations under the AML/CFT Act between April 2015 and November 2018. The FMA’s case was focused on transactions undertaken by 10 CLSAP NZ customers. The FMA and CLSAP NZ filed an agreed statement of facts where CLSAP NZ admitted:

• failures to conduct enhanced customer due diligence in relation to 12 transactions;
• failure to conduct customer due diligence in relation to one customer;
• failures to terminate existing business relationships when customer due diligence could not be completed;
• failures to report suspicious transactions / activity on nine occasions; and
• failure to keep records as required under the AML/CFT Act

“CLSA Premium New Zealand Limited (CLSAP NZ) has been ordered to pay a total pecuniary penalty of $770,000 for breaches of the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act, following proceedings brought by the Financial Markets Authority – Te Mana Tātai Hokohoko (FMA).

The FMA filed proceedings in June 2020, in the Auckland High Court, alleging CLSAP NZ failed to comply with its obligations under the AML/CFT Act between April 2015 and November 2018. These were the first court proceedings brought by the FMA under the AML/CFT Act.

In a judgment determining the penalty, Justice Edwards noted CLSAP NZ’s failure to obtain any evidence of source of wealth or source of funds for some of the transactions where enhanced customer due diligence was required and “the inadequate information obtained when it was sought, is particularly concerning.”

The Judge said although CLSAP NZ had an AML/CFT programme, policies, and dedicated compliance staff, the mitigating effect of those features on the penalty  was undermined by several factors:

CLSAP NZ was warned by the FMA about its substandard AML/CFT programme in 2014 and, despite improvements, the FMA identified further issues in 2018

CLSAP NZ’s executive directors interfered with compliance, including by suspending information collected on source of wealth/funds in 2017, and one director vouching for a customer’s source of wealth/funds

Two CLSAP NZ compliance officers resigning over the relevant period due to disagreements with CLSAP NZ directors, with one director saying a “bendier” compliance officer was required

When one customer refused to provide information sought, CLSAP NZ was willing to accept inadequate information, including objectively suspicious information, to retain business.”

Click here to read more

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Cigna: New customers to receive two months of free cover

Cigna: Existing customers that increase their level of insurance will receive the first two months of increased cover at no additional cost

Cigna: financial advisers will receive twice the servicing commission for two months for all new business and increases sold during the campaign period

FMA: Samantha Barrass appointed as new FMA CEO

FMA: FMA has said that they will take a ‘no-action’ approach when market participant breaches, or expects to breach, a regulatory obligation and seeks relief from the FMA

Financial Advice: Economic Update from Tony Alexander

Financial Advice: Toolkit for FAP Directors

Financial Advice: Financial Advice NZ 2021 Awards now open

In conjunction with The Ethics Conversation, Financial Advice NZ is offering an ethics course that will be delivered by Jane Arnott, Director of The Ethics Conversation. The three-hour online workshop is designed to support financial advisers looking to demonstrate their commitment to professional ethics. The workshop will be based on three modules and will refer to the Code of Professional Conduct for Financial Advice Providers and Financial Advisers. Various topics will be covered including:

• business ethics fundamentals
• conflicts of interest
• bias and speaking up
• an examination of risks, challenges and ethical dilemmas
• potential for dilemmas
• role of the professional
• difference between compliance and ethics

Cost:

For members: $200 +GST

For non-members: $300 +GST

“This workshop delivered by Financial Advice NZ & The Ethics Conversation supports and enhances the competence of financial advisers seeking to demonstrate their commitment to professional ethics and good practice that underpins all client relationships.

The workshop session covers: business ethics fundamentals, conflicts of interest, bias and speaking up, along with an examination of risks, challenges and ethical dilemmas. It refers to the Code of Professional Conduct for Financial Advice Providers and financial advisers. It examines the potential for dilemmas to arise and reflects on the role of the professional and provides conceptual clarity around the difference between compliance and ethics.”

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Suncorp NZ has reported that Asteron Life has achieved a profit after tax of $38 million in the year to June. This figure is down $2 million when compared to the same period last year. The financial outcome has been credited to improved claims experience, although interest rate market adjustments impacted the results. Additionally, there was a 4.0% increase for in-force premium as a result of new business growth and retention rates. Asteron Life has credited financial advisers for the $2 million increase in new business growth. CEO Jimmy  Higgins has said Asteron Life’s flexible products and adviser and customer focus during COVID-19 was recognised by advisers for delivering good customer outcomes.

“The New Zealand life insurance business delivered profit after tax of $38 million, down $2 million on the prior corresponding period.

The strong underlying performance was driven by improved claims experience but offset by unfavourable market adjustments as a result a rising interest rate environment. The in-force premium growth of 4.0% was driven by new business growth and strong retention rates.

New business was $2 million higher than the pcp, mainly due to increased business through independent financial advisors.

Higgins says that Asteron Life’s focus on supporting advisers and customers through Covid-19, and its suite of innovative and highly flexible products, were being recognised by advisers as a strong choice for delivering good customer outcomes.” Click here to read more

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Financial Advice NZ: Time to review your professional development plan and stay compliant in the new regime

AIA has announced that there will be updates to the underwriting approach relating to mental health. This change is designed to allow customers to ‘tell their own story’ about their mental health when applying for cover. Chief Customer Officer Sharron Botica has said that the updated questions will allow customers to share their personal experiences and will ensure that underwriters are only involved when it is determined that further consideration is needed. AIA has said that it is important to find ways to ensure underwriting practices are more inclusive as mental health affects many New Zealanders.

“AIA NZ has taken a positive step forward to support customers to ‘tell their own story’ of mental ill health when applying for insurance cover.

Improvements have been made to the insurer’s underwriting approach to mental ill health disclosures for Income Protection cover, via its online platform AIAHub. These changes include an expanded set of questions to better understand the nature and severity of any mental health conditions being disclosed, and in some circumstances, provide straight-through processing.

AIA NZ Chief Customer Officer Sharron Botica says, “With the growing maturity of automated underwriting and our ability to analyse data from many years of customer disclosures, we are pleased to have been able to review our previous approach of manual underwriting, and introduce some automation to better support customers with mental ill health.”

Historically applications for Income Protection have been referred for manual underwriting when mental health issues are disclosed, irrespective of the severity or type of mental health condition or the impact on a customer's individual circumstances. Across the market, mental ill health is considered a disclosure that requires independent, third party information such as a doctor's report, to ensure it can be accurately underwritten due its subjective or changing nature, which makes it difficult to assess.

“Mental ill health disclosures are never easy, and the revised question set will offer AIA NZ customers the chance to share their personal experiences, and allow our underwriters to only become more involved on those cases that require further consideration,” says Sharron. “We believe it is important to recognise the disclosure and the type of mental health issue our customer is experiencing, or has experienced in the past.”

“While there are some more severe mental ill health conditions that will continue to be automatically referred, some milder conditions such as those relatively transitory in nature, or those which have minimal or no impact on daily work and activities, will – in the majority of cases – no longer require additional medical information to be provided,” Sharron says.

According to the 2018 He Ara Oranga Report into Mental Health and Addiction, over 50–80% of New Zealanders will experience mental distress or addiction challenges (or both), in their lifetime*. AIA NZ’s charity partner, the Mental Health Foundation of New Zealand, stated in their 2020 Wellbeing study that a quarter of New Zealanders currently have poor levels of mental and emotional wellbeing, including nearly a third of women. 

“We know mental ill health is something affecting many New Zealanders, and we feel it is important that we find ways within our underwriting practices to be more inclusive. While we acknowledge there is more we can do to support these customers, we feel these changes are a positive step forward to providing cover, and the chance for customers to have their personal experiences understood more clearly,” Sharron says

AIA NZ will continue to look closely at other underwriting considerations and disclosures, such as smoking status, alcohol consumption and BMI which research shows are all drivers of poorer mental health outcomes.

“At AIA our dream is for New Zealand to become one of the healthiest and best protected nations in the world. We believe we have a responsibility as New Zealand’s largest life insurer to move away from simply being a payer of claims, to partner with New Zealanders to support their mental wellbeing and help them lead Healthier, Longer, Better Lives.” 

In other news

FSC: Dame Valerie Adams confirmed to speak on day 1 of FSC ReGenerations Conference

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Financial Advice: Professional Ethics Workshop

Financial Advice: Review your professional development plan and stay compliant in the new regime

RBNZ: New foundations to strengthen and modernise the Reserve Bank

The Financial Advice NZ awards entries are open until 17 September 2021. The awards will include five award categories, with a total of 16 awards on offer. The categories include:

“SERVICE TO THE PROFESSION AWARD - The individual who has made an outstanding contribution to the financial services sector, going above and beyond to champion or enhance the profession. - This person does not have to be a member of Financial Advice NZ. - There is an opportunity for one award for this category.

OUTSTANDING ADVISER AWARD - Recognises members who help New Zealanders achieve financial wellbeing through providing an outstanding financial advice service and who exhibit professional excellence. - There is one award per financial advice stream for this category.

RISING STAR AWARD - Recognises the brightest new talent in advice among members in their chosen field of financial advice. - There is one award per financial advice stream for this category.

OUTSTANDING SUPPORT PERSON AWARD - Recognises members who demonstrate exceptional adviser support and ongoing commitment to the financial services sector. - There is one award per financial advice stream for this category.

COMMUNITY SERVICE AWARD - Recognises members who have made a meaningful and positive impact on the lives of people in our communities in respect of financial wellbeing. - There are three awards in this category.

While there are five award categories, there are 16 awards to be handed out over the night with multiple awards for different advice streams. ” Click here to read more

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Cigna: Cigna Live to be held on 20 August at 10am

Partners Life: Expressions of interest for September New Adviser Training Course now open

AIA: AIA named as one of Top Insurance Employers 2021 winners

Suncorp: Suncorp's profits take 17% hit

Russell’s piece on Good returns: Adviser opportunities have never been better

Financial Advice: free Money Week webinars

Adviser Voice: TAL enters into share sale agreement to acquire Westpac’s life insurance business alongside an exclusive 20-year strategic alliance - Australia

Financial Advice NZ has announced this year’s conference. Details on the conference are below.

Keynote speakers

Date: 16 November 2021

• Mykel Dixon
• Dr Angus Hervey, Future Crunch
• Matt Whineray

Date: 17 November 2021

• Matt Church
• Siouxsie Wiles

Business sessions

Date: 17 November 2021

• Speaker: John Spence, global business expert and executive coach (via Zoom)

Topic: Delivering Consistently Superior Customer Service

• Speaker: Michael Henderson, Business Culture Subject Matter Expert

Topic: Ferocious Creating a High-Performance Company Culture

• Speaker: Michael Kitces, financial planning educator (via Zoom)

Topic: Applying Behavioural Finance in Principle

• Speaker: Paul Spoonley, demographer, former Pro Vice-​Chancellor of the College of Humanities and Social Sciences at Massey University

Topic: Demographic change and the impact on the face of New Zealand

Lightning Talks

Date: 16 November 2021

• Sam Johnson
• Ben Teusse
• Simon White
• Steven Korner

Venue: TSB Arena & Shed 6, 4 Queens Wharf, Wellington Central, Wellington

Dates: 15 November 2021, 16 November 2021, and 17 November 2021,

Prices:

All costs exclude GST.

Masterclass

Venue: TSB Arena & Shed 6, 4 Queens Wharf, Wellington Central, Wellington

Date: 15 November 2021

Price: $80 + GST (MasterClass only)

Time: 2:30pm – 5:30pm followed by dinner at Portifino Restaurant at 6:30pm (dinner is an additional $60)

Click here to register

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