Legal and regulatory update for the life and health insurance sector

12 Nov 2021 – Consumer Protection media release about scams during Fraud Awareness Week. https://www.consumerprotection.govt.nz/news-and-media/rise-in-online-scams-costs-millions/

12 Nov 2021 - Council of Financial Regulators released an updated Regulatory Initiatives Calendar for the financial sector. https://www.cofr.govt.nz/news-and-publications/regulatory-initiatives-calendar.html

12 Nov 2021 - Finance Minister Grant Robertson and Climate Change Minister James Shaw announced that the Government plans to issue sovereign Green Bonds from next year to help raise finance for New Zealand’s low carbon transition. https://www.treasury.govt.nz/news-and-events/news/new-zealand-issue-sovereign-green-bonds


Legal and regulatory update for the life and health insurance sector

18 Nov 2020 – The Privacy Commissioner published a reminder regarding the Model Contract Clauses for “Disclosing personal information outside New Zealand” under new Privacy Principle 12 available on the Commission website at https://privacy.org.nz/news-and-publications/guidance-resources/disclosing-outside-nz/

19 Nov 2020 – As part of Fraud Awareness Week, which runs from 15 to 21 November, the FMA released a media briefing regarding the rise in scams impersonating NZ businesses during COVID-19. https://www.fma.govt.nz/news-and-resources/media-releases/rise-in-scams-during-covid-19/


But are they just little lies?

Stuff has this great article by Nile Bijoux about people being willing to lie to their insurer. Those are general insurers, but it seems a stretch to believe that the same people happy to lie on their car insurance application would suddenly become gravely honest when filling in a life application. Perhaps people don't really think of lying to their insurer as a big deal - so many do it. This is borne out in other markets too - in the UK it is estimated that it adds the equivalent of about $60 a year to every insurance policy. If that margin were applied to the 2.5 million life, trauma, IP, and TPD, policies in New Zealand it would mean about $150 million in fraud costs each year. 


Buying insurance after you have been diagnosed with a problem?

It sounds ridiculous, but it does happen. Clients call advisers and ask if they can buy insurance, or reinstate lapsed insurance, after they have been diagnosed with a serious illness. Most insurance advisers have had this experience. It is worth recounting as an antidote to those people that believe every claim by a customer is valid - as it turns out that quite a few people will try to buy cover for certain events, not uncertain ones. Some of this will be a genuine error, some will be a deliberate attempt to obtain a claim payment where none is due. Here is a more recent example from the general insurance world - link.