Insurance Industry says policyholder guarantee scheme unnecessary, and other news

David Hargreaves writes about how insurers are universally against development of a policyholder guarantee scheme on interest.co.nz. Most policyholders in focus group expressed some willingness to pay a little more for 'fully guaranteed insurance' so long as increased costs would not increase insurer profits.

The Reserve Bank has been pushed back fairly firmly by the insurance industry on suggestions of developing a policyholder guarantee scheme.

Last year the central bank said it was considering introducing a scheme to pay out claims in the event of an insurance company failing.

The concept would effectively insure policyholders against the risk of their insurer collapsing….

"They felt a scheme should be unnecessary if other regulatory settings were correct; would risk moral hazard; would increase costs for policyholders (in a market that already showed signs of underinsurance); and would be an inefficient way of providing protection," the RBNZ said in its submissions summary.

More daily news:

Cigna NZ launches 'new professionals option'

Reserve Bank's consultation on insurance legislation finds financial information insurers publish is broadly appropriate

2022 Budget raises annual operating funding of FMA

Allianz Global Insurance Report finds premiums jumped by 5.1% in 2021


New Zealand’s protection gap according to Sharron Botica, and other daily news

A recent report suggests New Zealanders are under-insured by hundreds of billions of dollars. Spinoff asks Sharron Botica from AIA New Zealand to explain why it’s so important to make up the shortfall.

“Customer insight work carried out by AIA has told us that people often feel protected against death, illness and other physical circumstances because they feel they can lean on whānau and community to help out. But this isn’t always realistic, and it can be a dangerous mistake that could leave that support network severely and unexpectedly cost-laden.

According to a Financial Services Council NZ report from 2020, 71% of New Zealanders are under-insured when it comes to life insurance.

….. we drastically underestimate how much financial pressure is created when a household loses half of its income.

In 2018, the retirement commissioner Diane Maxwell said the New Zealand “she’ll be right” attitude could be playing a part. That attitude has major consequences and leaves your loved ones to carry a heavy burden.

While relying on savings is a common plan in case of a significant event causing a loss of income – the proverbial “rainy day fund” – you need to have savings to use. Data from Stats NZ showed New Zealanders typically don’t have great savings, with just 0.4% of income being saved over the quarter ending March last year."

More daily news:

FSC says NZ Income Insurance Scheme needs "more time"

Southern Cross wins Organisational Change & Development award at the NZ HR Awards 2022

Jackie Waddams appointed as General Counsel for AIA New Zealand

FANZ’s 1 June webinar covers key insights, updates and best practice for insurance advisers, register here.

Goodreturns: JP Hale thinks he knows why your clients are unhappy


Southern Cross appoints new COO and more daily news

Southern Cross Healthcare has appointed Mark Stewart as Chief Operating Officer, which they say completes recent changes to the executive team. From the Southern Cross media release:

"Mr Stewart brings with him a wealth of expertise in developing innovative strategies within complex environments and leading business transformations. He joins Southern Cross from PwC, where he led the company’s engagement with national telehealth service Whakarongorau Aotearoa.

Prior to that role, Mr Stewart spent more than a decade working for NZ Post, including four years as the state-owned enterprise’s COO. There, he held operational and strategic leadership for more than 5,000 people and co-led the organisation’s transformation in supporting the growing demands of online retail.

Mr Stewart has also spent several years working in the UK and has completed a PhD in Management Science/Operations Research.

Southern Cross Healthcare CEO Chris White says Mr Stewart’s experience makes him the ideal choice for leading operational functions across the hospitals side of the business.

“Mark has a strong track record in leadership and change management within large-scale, complex environments, and these skills will be critical as Southern Cross Healthcare evolves into a more integrated healthcare system that offers consistently high-quality care,” he said.

Mr Stewart will be joining Southern Cross Healthcare from 20 June 2022.

More daily news:

Partners Life is running webinars on completing your full license application

Strategic pay has published its 2022 Directors' Fees survey

FSC released a blog item titled, “Health Insurance Myths Busted.” https://www.moneyandyou.org.nz/blog/health-insurance-myths-busted

Cardiologists are seeing an increasing number of heart problems in people catching Covid-19


FSC announces Future ready advice summit, Queenstown – and more daily news

The Financial Services Council has announced the new Future Ready advice summit in Queenstown. Come along and join us at the summit and learn about – if you do, we will see you there. More from the FSC:

“Join us at the Future Ready Advice Summit on 14 June 2022 in beautiful Queenstown at the Heritage Hotel. This Summit follows the successful online event in February this year, and gives us a much-needed opportunity to reconnect and learn, while supporting Kiwi tourism.

By attending, you will:

  • Hear directly from our regulatory partners and key decision makers
  • Get the latest advice on thriving under a financial advice provider license
  • Hear from experts and focus on the future and developing professional advice practices
  • Join our Advice Masterclass focused on future-proofing the business model of the future
  • Network with peers and hear from industry leaders
  • Speak to suppliers for practical help and support through the changes
  • Contribute towards your Code Standard 9 competence requirements 

Both streaming and in-person tickets are now available for purchase. In-person numbers are limited, so we encourage you to register quickly to avoid disappointment.

More daily news:

Partners Life announces new adviser training course 20-22 June

AIA launches new limited cover starter plans

Financial Advice New Zealand regional roadshow


Legal and regulatory update for the life and health insurance sector

5 May 2022 – NZ Police Financial Intelligence Unit released The Suspicious Activity Report related to AML for March 2022. https://www.police.govt.nz/advice-services/businesses-and-organisations/nz-financial-intelligence-unit-fiu/fiu-reports

5 May 2022 – RBNZ advised of new data to be included in the Reserve Bank’s Tara-ā-Whare Household Inflation Expectations Survey, (M13), which will be available from 19 May. https://www.rbnz.govt.nz/statistics/m13

5 May 2022 – Financial Services Council released KiwiSaver industry statistics from the March quarter 2022. https://blog.fsc.org.nz/kiwisaver-spotlight-march-2022

5 May 2022 – IRD issued a consultation on whether and how New Zealand should participate in an OECD/G20 tax measure aimed at base erosion and profit shifting by large multinational enterprises. Submissions close on 1 July 2022. https://www.taxpolicy.ird.govt.nz/news/2022/2022-05-05-oecd-pillar-two-consultation


Financial Advice New Zealand Awards and more daily news

Financial Advice New Zealand are calling for nominations for the 2022 Awards. The awards will be made at the Conference in Christchurch on the 6th of September.

Today we are excited to announce that nominations are open for the 2022 Financial Advice New Zealand Awards. We would really appreciate it if you could help us spread the word and encourage financial advisers to join us in celebrating excellence in financial advice and nominate themselves, their employees, or peers in the sector. Below is a communication for you to forward on to your advisers, as well as an awards image attached.

Nominations are now open for the 2022 Financial Advice New Zealand Awards

Financial Advice New Zealand celebrates, promotes, and recognises excellence in financial advice to consumers, industry related stakeholders and the public of New Zealand.

The awards, which will be announced at the Gala Dinner during the 2022 Financial Advice NZ Conference in Christchurch on the 6th of September, present such an important opportunity for the sector to come together to acknowledge and celebrate the outstanding work of New Zealand’s financial advisers and support staff in regard to their commitment to the profession, their clients and the wider community.

So, who do you think deserves to be recognised?

Financial Advice NZ members can nominate themselves, their employees, or peers in the sector for one of (up to) a total of 16 awards from five different categories:

  • Service to the Profession Award
  • Outstanding Adviser Award
  • Rising Star Award
  • Outstanding Support Person Award
  • Community Service Award


Entries close on the 15th of July.  For details on how to apply and the judging criteria for each of the categories visit https://financialadvice.nz/financial-advice-nz-2022-awards/

We look forward to receiving your nomination and seeing you at the conference.

Other daily news:

NZseniors.co.nz offers life insurance with abbreviated underwriting for people aged between 50 and 79

Stuff.co.nz picks up the Financial Services Council's research on money


Legal and regulatory update for the life and health insurance sector

12 April 2022 – Retail Payment System Bill read a second time in Parliament. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_116198/retail-payment-system-bill

12 April 2022 – Financial Service Council (FSC) press release highlighted the publication on 4 April 2022 of the latest FSC research report titled, “Money & You – The Lost Generation?” https://blog.fsc.org.nz/research-reports-2022-money-and-you-the-lost-generation

12 April 2022 – Commission for Financial Capability highlighted Sorted’s release of the entirely rebuilt KiwiSaver fund finder (a mashup of a previous comparison engine of the same name with the platform’s fees calculator) that configures and adapts to KiwiSaver investors’ risk profile and circumstances, aiding them in comparing fund options across the entire KiwiSaver market. https://retirement.govt.nz/news/latest-news/kiwisaver-comparison-engine-revamped-to-project-fees/


Legal and regulatory update for the life and health insurance sector

8 April 2022 – MBIE released a consultation seeking feedback on a legislative response to Modern Slavery and Worker Exploitation, Forced Labour, People Trafficking and Slavery, with submissions closing on 7 June 2022. https://www.mbie.govt.nz/have-your-say/modern-slavery/

11 April 2022 – 11 April 2022 – Financial Services Council released details of a webinar held on 5 April 2022 titled, “Outlook for the insurance sector - Building a sustainable and trusted life and health insurance sector.” Clare Bolingford, FMA CEO, led the session with a presentation on the FMA outlook for the industry, followed by a select group of panellists discussing the key issues. https://blog.fsc.org.nz/fsc-connect-webinar-outlook-for-the-insurance-sector


Legal and regulator update for the life and health insurance sector

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/


Legal and regulatory update for the life and health insurance sector

25 March 2022 – Commission for Financial Capability announced that Sorted in Schools had launched a new learning taxation module in partnership with the Inland Revenue. https://retirement.govt.nz/news/latest-news/building-financial-capacity-for-students-understanding-tax/

25 March 2022 – Financial Services Council released a Financial Advice Law Guide 2022 for Financial Advisers. https://blog.fsc.org.nz/financial-advice-law-guide?hsLang=en