Pinnacle Life on insuring rainbow families, and more daily news

Pinnacle Life has published a piece on their website on the importance of insuring rainbow families. Pinnacle Life noted that families today no longer resemble the typical nuclear family unit. The piece focuses on rainbow families, which are families with parents who are part of the LGBTQI community. Pinnacle Life highlighted that the 2013 census recorded that there were 1,479 children of same-sex families in New Zealand. Pinnacle Life also noted that insurers base premium rates on assigned gender. While Pinnacle Life asks about a person’s gender, they have stated that they offer flexibility around policy ownership. Nonbinary individuals are still about the take out life insurance for themselves and their families, without worrying about gender-based pricing.

“The stereotypical family of 2021 is remarkably different from the family of 50 years ago. Mum, dad and two kids are becoming less the norm and more the unlikely. Today we are more likely to have blended families, split families, 1-child families, many kid families, single-parent families, multi-race families, rainbow families and more. With the pride festival winding down this week, we wanted to take a moment to acknowledge rainbow families particularly. 

 

A rainbow family is a same-sex or LGBTQI-parented family. Statistics are hard to come by, but in 2013 the census recorded 1479 children of same-sex families in New Zealand. It's safe to imagine that if we broadened the definition, considered the number of people who didn't complete the census and increased public acceptance during this period, that this figure has probably doubled and is growing. Teachers and schools will be factoring this into activities involving families, clubs and community centres too. It's not difficult; it just takes a bit of thoughtfulness to remember that not all kids have a 'mum and dad'. Some have two mums, two dads, or a combination that extends beyond one of each or something in between.

 

If you're part of a rainbow family, you might be frustrated that life insurance companies seem to be behind the times. While there is total flexibility around who owns your policy, we still ask questions about gender, with the only options to be male and female. Some life insurance companies underwrite transgender applicants based on assigned gender, while others use their stated gender.

 

Life insurance rates are calculated based on assigned gender and this is understandably a sensitive subject for a lot of people. This is unfortunately the norm in the industry because of the statistics around mortality. We can ensure that, once you purchase your policy online, your true gender is recorded in your policy document.

 

The important thing is you can still get life insurance if you are nonbinary, and it doesn't mean that you'll pay higher premiums because of your gender.

 

Your rainbow family may not have a nonbinary member. Rainbow families come in all shapes and sizes. But one thing they all have in common is that a lot of thought went into creating the family in the first place. Finding the 'missing ingredient' takes consideration and planning that most heterosexual couples haven't had to give a second thought. And that's just the starting point.” Click here to read more

 

In other news

 

nib: EMA HR Summit to be held 25 March 2021

FSC: Adviser research reveals optimistic outlook for the sector

Southern Cross: Southern Cross’s membership at 13-year high


What should advice cost?

What should advice cost? That was an excellent question from the audience during the first two of our recent getting in shape series. Perhaps this seemingly simple question surprised our panel. The answer to the question is not easy. It was a kind of sub-plot in the day's event: the question of the cost of advice is part of the disclosure story, part of the story about the future of advice, part of the story about the value of advisers solidly backed up by the research shared on the day. When asked what advice should cost the panel made a good beginning - in both Wellington and Auckland the first answer was "it should not be free". This echoed John Botica's  earlier comment during the first panel in Wellington where, talking about disclosure, he asked that any advisers taking commission should not refer to their advice as free. Of course advice isn't free. Often something that is not paid for is not valued. Advice is paid for (whether by fee or commission) and it is valuable. 

The question came up in the context of a discussion about how to make advice more accessible. For people to value advice they must first know it is available, believe it is worth getting - but these are just pre-conditions. Often we know something would be good for us, but don't do it.

Many people struggle with making the time to meet with an adviser - not just because of the time for the meeting, but they fear the time the work around the meeting will take. A good portion of the population are certain that their finances are a mess, and if not, then the musty file of papers definitely is a mess. So they fear judgment. Many people struggle with making room for the cost of advice. If they believe that it will require payment at the time and their budget is already stretched they will be reluctant to make an appointment. Commission has a valuable financing role to play here - but it is not the only mechanism, of course, that can make access to advice easier. 

So although advice should not be free, we need to make it easy to start the process. Which means the initial steps should be free - and easy to do.

Most advisers offer initial discussions at no charge. More can be done to make brief trials of the value of advice accessible. Social media helps, Zoom and MS Teams helps, but nothing quite beats a meeting - and the ability to slip into a 20 minute session on KiwiSaver at lunch or hear ten top tips on managing your home loan at the local mall are probably under-utilised strategies. Now add some tools in the client's first language (which will not be English in about a third of cases in Auckland) and spoken by someone who at least knows your culture a bit... these are access strategies. They reduce the psychological costs (fear of rejection, fear of shame, fear of being exposed as not having 'enough money to qualify for advice'). 


New FSC research findings, and more daily news

FSC CEO Richard Klipin presented the findings of new research at the FSC Get in Shape summit last week. Unlocking the Potential of Professional Financial Advice was centred around the response of those within the industry to the following questions:

·       How do you feel on the other side of Covid?

·       How ready are you for upcoming regulation changes?

·       What is your outlook for the future?

Klipin noted that findings indicated that the industry is in a time of change with a transition from a sales led approach to an advice led approach. With this change it expected that there will be changes to business models, remuneration models, and client connection methods. The research also showed that advisers had a positive outlook on thepost-COVID-19 reality. 

FSC CEO Richard Klipin unveiled the new research entitled, “Unlocking the Potential of Professional Financial Advice” at the FSC: Get In Shape events this week.

The research shows that the financial advice sector has remained resilient despite the challenges of Covid and regulatory change while continuing to provide ongoing value to Kiwis.

The FSC research committee asked the advice community three questions.

1. How do you feel on the other side of Covid?

2. How ready are you for upcoming regulation changes?

3. What is your outlook for the future?

Klipin said that the conclusion of the research was that “We are in a huge moment of change. We are moving towards the much more level footing of an advice-led [rather than a sales-led] conversation.

“Because of this, business models, remuneration models, how advisers connect with their clients are all going to change. It feels like this moment is unleashing an incredible opportunity for the industry.”

As well as reaffirming previous research that highlighted the benefits of financial advice during times of turmoil, the research also showed that advisers were feeling that they could weather the post-Covid storm.

“What we saw in Covid was a change in how people operated their businesses. The key change in this sector has been the pick up and the take up of technology.

 

The research found that many advisers are preparing themselves for the upcoming regulatory changes, with 57.5% of advisers reporting that they were preparing for changes relating to FSLAA and 32% of advisers saying that they would be ready when the law came into place. The research also highlighted that there generally was a positive response to the upcoming change.

When looking at how ready advisers are for regulation change the numbers are looking even more positive.

“At the end of last year, 57.5% of advisers said that [they] have continued to ready themselves to implement the required changes in FSLAA, 32% said they will be ready when it begins.

“This notion in some parts of the sector [that some are] wondering how ready are people? How many people are out there not doing anything? This data says that most advisers are well down the track.”

According to the research most advisers have a positive outlook for the future. Many of the respondents felt that the incoming regulation changes are positive for customers, and for advisers bothClick here to read more

FSC findings

In other news

FSC: in response to the Lockdown announcement and upcoming regulatory changes, the FSC will be running a Zoom session for those registered for the Christchurch and Dunedin Advice Summits on Wednesday 17 February 2021 from 08.00 until 10.00.

The Zoom session schedule is:

0800:  Welcome from FSC, CEO Richard Klipin

0805:  Opening Session: Hon Dr David Clark, Minister of Commerce and Consumer Affairs

0815:  Embedding the changes in the New Zealand Advice Sector

0905:  Comfort break

0910:  Disclosure – Focusing on your responsibilities ahead of 15 March 2021

0935:  Helping New Zealand’s advisers to grow – tools, tips and insights

0955:  Close - FSC, CEO Richard Klipin

 


FSC Get in Shape summit kicks off, and more daily news

The FSC Get in Shape summit kicked off on Tuesday in Wellington. The two-part conference begun with the advice summit that was made up of different panels with industry experts. The advice summit included an address by Minister David Clark. The second part of the conference was the Masterclass that was focused on licensing, disclosure and advice. The next conference will be in Auckland, followed by conferences in Christchurch and Dunedin next week.

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Trisha Edmonds, Head of Advisory Distribution Funds at ANZ is pictured leading a panel that includes chair of the Financial Advice Code Working Group Angus Dale-Jones, FMA Director of Market Engagement John Botica, FMA Principal Consultant - Market Engagement Derek Grantham, and MBIE Manager Financial Markets Sharon Corbett

In other news

Financial Advice: Financial Advice reports that there have been 1,467 transitional licences issued as of this week with 774 authorised bodies attached to licences. This covers 9,600 advisers. 

PAA: PAA Legacy Trust calling for 'innovation' from advisers

FSC: Out of retirement villages and into the FSC


Legal and regulatory update for the life and health insurance sector

3 Feb 2021 – FMA Chief Executive Rob Everett spoke at the Financial Services Council Outlook 2021 event about a year in review, a look to the year ahead and key learnings from the challenging year that was 2020. https://www.fma.govt.nz/news-and-resources/speeches-and-presentations/rob-everett-fsco-2021/

8 Feb 2021 – Government announced that, from 9 Feb 2021, employers can receive a $350 payment if their employees cannot work from home while awaiting a COVID-19 test result. https://www.beehive.govt.nz/release/new-covid-19-payment-supports-businesses

9 Feb 2021 – RBNZ announced that it is putting in place more stringent loan-to-value ratio (LVR) restrictions. The LVR restrictions do not apply to new residential construction. https://www.rbnz.govt.nz/news/2021/02/financial-stability-strengthened-by-firmer-lvr-restrictions

9 Feb 2021 – Treasury released the 2021 Budget Policy Statement. https://www.treasury.govt.nz/publications/budget-policy-statement/budget-policy-statement-2021

9 Feb 2021 – Minister of Finance speech delivered on the Budget Policy Statement. https://www.beehive.govt.nz/speech/speech-bnz-breakfast-budget-policy-statement

9 Feb 2021 – Minister of Health congratulated the inaugural Mental Health and Wellbeing Commission and its board, as the Commission marked its first day as an independent Crown entity. https://www.beehive.govt.nz/release/mental-health-and-wellbeing-commission-gets-work

9 Feb 2021 – The 2021 Parliamentary session commenced today.


Minister David Clark to join FSC Conference, and more daily news

Commerce and Consumer Affairs Minister David Clark is set to address conference attendees next week. The FSC Get in Shape Conference kicks off on Tuesday in Wellington. The conference will be one of the first public appearances of Minister Clark as Minister of Commerce and Consumer Affairs. Richard Klipin, FSC CEO, has said that this will be a great opportunity to hear from the Minister about his priorities and expectations during this time of change.

“Dr David Clark will be opening the Financial Services Council’s Get In Shape Summit in Wellington next week – one of his first appearances in his new role as Minister of Commerce and Consumer Affairs, formerly held by Immigration Minister Kris Faafoi.

 

FSC CEO Richard Klipin said the address will be a great opportunity for advisers to hear from the new Minister in person, particularly at a time when the sector is going through a significant transformation period.

 

“The financial advice sector is going through a significant change,” Klipin commented. “We at the FSC, along with the financial advice community in New Zealand, are looking forward to hearing the Minister’s views as he steps into his new role.

 

“This is a great opportunity for the industry to hear firsthand from the new Minister on his  , and is not to be missed.” 

Click here to read more

Click here to register for Get in Shape Conferences

 

In other news

Financial Advice: over 400 advisers registered for second Ready Set GO webinar held on 03/02/21

Financial Advice: Katrina Shanks to be part of the Commission for Financial Capability (CFCC) National Strategy Session


nib Australia announces new COVID-19 friendly travel insurance product, and more daily news

nib Travel Group has announced the introduction of an insurance product with built-in COVID-19 cover for customers travelling domestically and internationally. The product is set to offer cover for some COVID-19 related events. The product will be introduced across all nib Travel Group’s brands. Anna Gladman, nib Travel Chief Executive Officer has said that the new product highlights the efforts of the insurer to offer continued protection to customers. Gladman has said that they reassessed the level of cover offered by existing products as they understand the lasting effects COVID-19 will have.

“nib Travel Group (nib Travel) has today announced a new travel insurance product which includes plans which offer cover for some Coronavirus (COVID-19) related events as it resumes selling travel insurance policies in Australia.

The new product will be rolled out across all nib Travel brands starting with Travel Insurance Direct (TID).

nib Travel Chief Executive Officer, Anna Gladman said the new product reflects efforts to find new ways to protect travellers in a world learning to live with coronavirus.

“We understand travellers are concerned about the impact coronavirus might have on their plans and health while travelling. A survey* of our travellers showed 40% were looking for Coronavirus (COVID-19) related events in their policy,” Mrs Gladman said.

“With coronavirus destined to become part of normal life and in response to the challenges this poses to travel we have reassessed our coverage and the protection we can extend to travellers," she said.”

It has also been announced that customers looking to increase their level of cover will have access to some cancellation and additional accommodation costs if they are required to quarantine while travelling. Cancellation coverage has also been introduced for essential workers who may be required to return to work.

“In addition to new cover for coronavirus-related medical expenses overseas, travellers who choose a higher level cover also have access to some cancellation and additional accommodation costs if subject to quarantine as a result of a diagnosis while travelling.

The new product also recognises the extraordinary contribution of healthcare, aged care and law enforcement workers who have worked tirelessly against COVID-19 with special provision for cancellation coverage should they be asked to return to work.

The new product will support those travellers looking to book trips both domestically now and internationally in the future with the desire to travel remaining strong.” Click here to read more

In other news

FSC: Hon Dr. David Clark, Commerce and Consumer Affairs Minister to speak at Get In Shape Advice Summits

Ministry of Health: Our consultation on draft #VapingNZ regulations opened today, covering everything from packaging requirements to where vaping products can be displayed.

FSC: Breakfast with Rob Everett - Outlook 2021 Launches Digital Stream


FSC Get in Shape Conference

The FSC Get in Shape Conference is just around the corner and we thought it was a good time to highlight what to expect if attending. The conferences will be held in Wellington, Auckland, Christchurch and Dunedin. The FSC has ensured relevant topics are discussed by industry leaders in the sessions and Masterclass. Highlights of the conference include:

  • Meet and engage with the leaders shaping our sector and regulatory landscape. These include Leaders from the MBIE, the FMA, the CFFC and the financial advisory sector.
  • Consumer focus - We will unpack the latest research from across the NZ and the globe  and understand how Financial Advice is helping Kiwis lead better lives.
  • Engage with Leading legal minds at the Masterclass - The masterclass is curated by those that understand what it really means to succeed under the new regulation. Our line up of legal experts and leading advisers will be run in a practical workshop style to have you thinking outside the box and teach you how to best use resources available to you.
  • Connect  and network with your colleagues - After a very tough 2020, join your colleagues for a morning of learning, engaging and getting inspired for the year ahead.
  •  Meet  you in the market place – Once again our marketplace expo is the meeting place to connect with your suppliers and partners.
  • CPD -  Get your CPD & learning program off to a strong start for 2021. All sessions will be assessed and all attendees will receive CPD certificates for sessions attended. 

Those interested in attending can register here and find the dates and location below.

WELLINGTON
Wednesday, 10 February 2021
Arrival from 7:15am, welcome at 8:00am, advice summit close 12:45 followed by Masterclass from 1.15pm until 3.15pm

Members Gallery
Sky Stadium
105 Waterloo Quay
Pipitea,
Wellington 6140

AUCKLAND
Thursday, 11 February 2021
Arrival from 7:15am, welcome at 8:00am, advice summit close 12:45 followed by Masterclass from 1.15pm until 3.15pm

North Level 5 Lounge
Eden Park Function Centre
10 Reimers Ave
Kingsland
Auckland 1024

CHRISTCHURCH
Wednesday, 17 February 2021
Arrival from 7:15am, welcome at 8:00am, advice summit close 12:45 followed by Masterclass from 1.15pm until 3.15pm

Tait Technology Centre
245 Wooldridge Road
Harewood
Christchurch 8051

DUNEDIN
Thursday, 18 February 2019
Arrival from 10:00am, welcome at 10:30am, close 3.00pm followed by Masterclass from 3.15pm until 5.15pm

Dunedin Centre
1 Harrop Street
Dunedin 9016

Get In Shape 2021 Big Banner v1 - Financial Services Council


Southern Cross Travel Insurance appoints new CFO, and more daily news

Southern Cross announced the appointment of Amanda Yap-Choong as the new Chief Financial Officer. Yap-Choong is a Chartered Accountant and was previously the Commercial Finance Manager at Chapman Tripp. She has also worked at Broadspectrum and PwC. In her new role Yap-Choong will be responsible for overlooking the national finance function, business analysis, and improving efficiencies in processes and reporting.

“Southern Cross Travel Insurance (SCTI) has brought Amanda Yap-Choong into the role of Chief Financial Officer, where she will provide business operations and change management leadership to deliver to the business’ strategic priorities.
 
Yap-Choong is a Chartered Accountant and brings extensive experience leading diverse cross-functional teams and stakeholder groups in the infrastructure and professional services industries. She is well versed in providing financial assurance to financial services sectors including insurance, banking and funds management.
 
Most recently, Yap-Choong worked as the Commercial Finance Manager for law firm Chapman Tripp. In this role she was responsible for managing the national finance function, delivering business analysis in an advisory capacity and improving efficiencies in processes and reporting. Prior to that, she held roles at Broadspectrum and PwC in New Zealand and Ireland.”

Jo McCauley, Southern Cross Travel Insurance CEO has said that Yap-Choong will strengthened the capability of the executive team and add value to businesses. Yap-Choong has said that she is pleased to join the team as the new CFO.

“Southern Cross Travel Insurance CEO Jo McCauley said, “We were impressed by Amanda’s commercial acumen and track record of delivering strong results.

 

“Amanda’s appointment has strengthened the capability of our executive team and her experience of adding value to businesses amidst times of change will help us deliver to our business priorities amidst COVID-19.”   Yap-Choong said, “I’m pleased to step into the CFO role at SCTI and join a great team which is focused on delivering exceptional service to its customers. I am looking forward to contributing towards SCTI’s strategic direction as the leader in the industry.”

In other news

Financial Advice: Get In Shape Advice Summit 2021 registration open

FMA: FMA sets expectations for issuers of ‘green’ and ‘responsible’ funds