FMA publishes info sheet for FAPs about compliance with record keeping obligations, and other news

The Financial Markets Authority has published an information sheet for Financial Advice Providers about how they can demonstrate compliance with record keeping obligations.

Under the new financial advice regime Standard Condition 1 for both transitional FAP licences and full FAP licences states: “You must create in a timely manner and maintain adequate records in relation to your financial advice service.”

The information sheet provides an overview of the record keeping obligations and sets out areas for FAPs to consider when reviewing their record keeping practises. It also includes examples to illustrate how FAPs can demonstrate compliance with the requirements.

More daily news:

Good Returns: The new-client conveyor-belt is broken

Christian Hawkesby holding Post-Monetary Policy Statement Presentations 31 May and 1 June

Kiwibank updates branding and introducing new slogan


nib completes purchase of Kiwi Insurance and more daily news

Kiwi Group Holdings Limited (KGH) today announced it has completed the sale of its life insurance business, Kiwi Insurance Limited (Kiwi Insurance), to nib NZ holdings limited (nib New Zealand) for NZ$45 million. More from the Kiwi Group media release:

The sale was announced in November 2021 subject to regulatory approvals which have now been received.  

Under the deal, nib New Zealand has acquired all the shares in Kiwi Insurance and entered an exclusive partnership with Kiwibank (a wholly owned subsidiary of KGH) where the bank will refer its retail customers to nib for their life and living insurance needs. 

Kiwibank Chief Executive Steve Jurkovich said Kiwi Insurance customers did not need to do anything as a result of the sale and that they were in good hands with nib. 

“I’m excited about this new partnership with nib which will allow Kiwibank to continue to deliver on its purpose of making Kiwi better off, whether that’s getting into a home or having the right insurance in place to protect what matters most,” Mr Jurkovich said.  

nib New Zealand Chief Executive Officer, Rob Hennin said they were committed to providing a seamless transition and ongoing great service to current customers including honouring all current policy benefits. 

“We look forward to welcoming current customers into the nib family and offering all Kiwi access to a suite of life and living insurance covers in line with our purpose of your better health,” Mr Hennin said. 

Advisers I spoke with were still not aware of the purchase of a life insurer by a major health insurer and expressed interest in the prospect of the creation of another 'full range' insurer to join AIA and Partners Life.

 

More daily news:

Financial Services Council announced that, in partnership with the Commission for Financial Capability, it had begun “a three-month, pan-sector campaign to take meaningful action to improve the financial wellbeing of our wāhine.” https://blog.fsc.org.nz/media-release-may-2022-fsc-rallies-organisations-to-grow-womens-financial-wellbeing

Vehicle insurers are seeing a return to pre-pandemic claims costs.

ANZIIF has announced two new board members.

 


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/


Kiwi Group Holdings to sell Life insurance business to nib

Kiwi group holdings has announced that it will sell its life insurance business to nib for $45 million (NZD) in early 2022. nib will enter into a partnership that refers all existing Kiwibank retail customers to nib. Kiwibank CEO Steve Jurkovich has said that he is delighted that Kiwibank and nib are entering into a long-term partnership to support New Zealanders.

“Kiwi Group Holdings announces sale of life insurance business; Kiwibank and nib to enter strategic partnership.

Kiwi Group Holdings Limited (KGH) today announced the sale of its life insurance business, Kiwi Insurance Limited, to nib nz holdings limited (nib) for NZ$45 million.

Under the terms of the deal nib will purchase 100% of the shares in Kiwi Insurance Limited and enter an exclusive relationship with Kiwibank Limited (Kiwibank – a wholly owned KGH subsidiary) which will see the bank refer its retail customers to nib for their life and living insurance needs. The sale is subject to regulatory approvals.

Kiwibank Chief Executive Steve Jurkovich said he was excited about today’s announcement which delivers on Kiwibank’s growth strategy by simplifying its business, building the bank’s partnership capabilities, and providing great outcomes for customers.

“Life insurance plays a vital role in providing financial security from the unexpected, and I’m delighted that Kiwibank and nib are entering into a long-term partnership that will support Kiwi to be better off,” said Mr Jurkovich.

nib Chief Executive Officer, Rob Hennin said there was a strong alignment between the values and mission of the companies making the acquisition and new partnership a great fit.

“We’re all about supporting our members better health and we’re looking forward to providing them access to a suite of health, life and living insurance covers,” Mr Hennin said.

Kiwi Insurance policyholders don’t need to do anything and will see no change to their current policies as a result of the sale.

Customers will receive further information ahead of the completion of the sale to nib in early 2022. In the meantime, it’s business as usual for the Kiwi Insurance team who remain committed to providing a great service to customers.”


Quality Product Research: Proposed rating for Aplastic Anaemia

Introduction

Were back with another item analysis - this time for Aplastic Anaemia.

Please find our proposed sub-items below.

Sub-items rating review

Aplastic

Notes

A defined treatment option is a commonality across all insurers, excluding Asteron Life who have a more open definition when compared to their competitors. We have included a sub-item for those insurers who require diagnosis from a medical specialist along with a deduction to those that do not offer an additional treatment option. Aplastic Anaemia is a lowly weighted item in our database; however, our proposed rating aims to emphasise the difference in the definition between insurers, rather than focusing too much on ranking them from best and worse.  

Your feedback

We value getting your feedback on how these wordings are being applied to claims you may be aware of. Please email us with details of any recent claims to help us update our understanding.

Doreen Dutt, Research Analyst, Quality Product Research Limited, researcher@qpresearch.co.nz


Quality Product Research: Proposed rating for Coma (Trauma)

Introduction

Following on with our recent theme of revising ratings, we have reviewed Coma, re-assessing the item based on modern definitions.  A rarely claimed on benefit, yet significant coverage in the media when the insurer decides not to pay out.  

Below are the proposed items for Coma.

Coma

Notes

Momentum life is the only provider that requires the insured to be in a coma for 96-hours, while Westpac uniquely requires a permanent neurological deficit. Three insurers, Fidelity, Pinnacle and Westpac specifically exclude medically induced comas and a similar definition is observed in the use of life support systems and response to internal and external needs.

Few insurers continue to use the Glasgow Coma Scale in their definitions – here is a quick overview of what the scale demonstrates https://medictests.com/units/glasgow-coma-score

Your feedback

We value getting your feedback on how these wordings are being applied to claims you may be aware of. Please email us with details of any recent claims to help us update our understanding.

Doreen Dutt, Research Analyst, Quality Product Research Limited, researcher@qpresearch.co.nz


nib announce changes to pricing, and more daily news

nib has announced that there will be a number of price changes from 1 April 2021. Pricing changes have been credited to the continued increase to nib’s claims’ costs. Current members will have the changes applied after their policy anniversary, if their policy anniversary doesn’t fall between April to June. nib has highlighted that price changes will vary for each member as price changes will depend on benefits, options and excess.

 

“Every quarter, nib reviews its health insurance premiums to ensure they are sufficient to cover both current and future claims, as well as to accurately reflect underlying costs.

 

Our latest review has identified that nib’s claims’ costs continue to increase, and as a result, our health insurance premiums need to be adjusted accordingly. These changes will vary between products, and will affect both current members renewing their policies and new policies sold this quarter.

 

Current members’ premiums are reviewed annually at their policy anniversary. If your client’s policy anniversary does not fall within the April – June period, there won’t be any change to their premiums until their next policy anniversary.

 

For the upcoming quarter, there is an average 9.7% annual increase for renewing policies.

 

Please note that the change in premium for each member will vary depending on the benefits, options and excess they have selected, who the policy covers and whether the premium includes a policy fee.

 

Other factors that can contribute to premium changes during the policy year include:

 

•  changes in cover terms for any of the people covered

•  changes in the ages of people covered

•  adding or removing people from the policy

•  a move from group cover to individual cover terms and conditions

•  loss of a Premium No Claims Discount or change in a five-year age band (these only apply to some legacy products).” 

Price changes will automatically be updated for quotes from 1 April. Quotes that were started before 1 April will be use current prices if the application goes into force within 30 days. Price changes for Ultimate Health Max will be spread across each quarter, most changes for Ultimate Health will happen on 1 April. The new rates will automatically be updated on nib illustrations and nibAPPLY. Advisers using nib Illustrator or Fidelity Life desktop Apollo will need to download the update before 31 March 2021 to ensure new rates are automatically applied. Prices changes will not affect group health as a whole, instead price changes will affect individuals that have enhanced cover terms, added family or added optional benefits.

 

“Premiums included in quotations for prospective new members will be updated from 1 April 2021.

 

For Ultimate Health Max: Premium increases are spread across each quarter throughout the year.

 

For Ultimate Health: Most of the annual increase occurs on 1 April each year.

            

The new rates will be automatically updated in nib illustrations and nibAPPLY. If you are using nib Illustrator and/or Fidelity Life desktop Apollo quoting software, make sure your quotations include the upcoming premium changes by downloading the update before 31 March 2021. Once you have downloaded the update, these rate changes will automatically apply to new and existing quotations after 1 April 2021.

 

Quotations dated before 1 April 2021 will be honoured if the application goes into force within 30 days of the quotation date. Note that quotations dated from 1 April 2021 will only be accepted at the new premium rates. 

 

For advisers who service group health insurance schemes, please be aware that the premium increases referred to above only apply to the individual members within a group where they have:

 

·       enhanced their group health insurance cover terms; or

·       added family or added optional benefits that they pay for personally.

 

The increase will apply to the portion of their health insurance premium relating to the enhanced cover terms and optional benefits, in the same way as those of members with individual covers. The member’s direct debit or payroll deduction will also change accordingly. Any increase in the group scheme’s premiums will be determined according to the scheme terms and conditions and will be paid for by the scheme owner.” 

Screen Shot 2021-03-18 at 3.13.03 PM

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In other news

 

TSB Bank: Larissa Vaughan set to leave CEO role at Kiwi Insurance in April to become GM Regulatory Affairs and General Counsel

Kiwi Insurance: From 9 April 2021 Kevin Crowley will be the acting CEO of Kiwi Insurance

Kiwi Adviser Network: The Kiwi Adviser Network launches


Asteron Life upfront commission enhancements, and more daily news

Asteron Life has announced that upfront commission rate will be 190% effective October 5 2020. The decision for this change has been credited to working towards sustainability by ensuring more New Zealanders can access independent financial advice. Asteron Life has announced that it is offering a temporary 10% Covid-19 support in addition to upfront commission changes, which means upfront commission will total to 200%. This additional support is set to be reviewed at the end of June 2021. A summary comparison is available for subscribers to the Quarterly Life and Health review and much more detail in the Quarterly Commission Comparison. These have just been published to subscribers. For subscription information please contact Kelly Pulham or Russell Hutchinson. 

In other news

Cigna: General Manager- Distribution role being advertised

Fidelity Life: Sharecare October Eat More Greens Diet Challenge launched

Fidelity Life: Sharecare October Stress Relief Challenge launched

Fidelity Life: information about Centr^, personalised daily digital health and fitness program by Chris Hemsworth can be found in Sharecare

Kiwibank: Senior Conduct Manager role being advertised

nib: Mental Resilience webinar


FSC looking for industry insights for new study, and more daily news

The FSC is seeking participants in a survey that relates to the three-part study Money & You. The survey is working to gather data on the views of those in the professional advice industry on the challenges faced within the industry and how New Zealanders can be better served. The survey is designed to take 12 -15 minutes to complete. The results will be published later in the year. The first part of the study was focused on the feelings and knowledge of money of New Zealanders and the second component of the study worked to understand the relationship New Zealanders have with money.

Click here to participate in the survey

AMP: AMP management overhaul keeps its risks “on the downside”

Kiwibank: Kiwibank claims negative OCR is unnecessary

Fidelity Life: new September Sharecare challenge is to achieve a minimum of 20 Green Days for a chance to win a subscription for a ‘Delight Gift Box’ from I AM Co

Fidelity Life: new September Sharecare challenge to track your sleep for at least two weeks to go into the draw to win a $250 Wallace Cotton voucher


AIA set to host online health and wellness event, and more daily news

It was announced that AIA will host an online health and wellness event, AIA Live, on August 2 2020 from 2 pm to 10pm. The event will be focused on mental wellbeing, exercise, activity and rest, nutrition and personal growth while also incorporating music and comedy into the sessions. AIA Life is set to solidify AIA’s commitment to encouraging healthy living. 30 sessions will be running during the event to appeal to people of all ages and in different regions.

“AIA, the largest independent publicly listed pan-Asian life insurance group, today announced plans to host its first ever regional online health and wellness event, spanning 13 markets and headlined by AIA’s Global Ambassador David Beckham.

AIA Live will be broadcast on Sunday 2nd August and will include more than 30 unique sessions, delivering health and wellness content to inspire, motivate and educate people across the region as part of AIA’s commitment to helping them live Healthier, Longer, Better Lives. Key themes will include mental wellbeing, exercise, activity and rest, nutrition, personal growth, as well as light-hearted moments of music and comedy.

AIA Live has been designed to appeal across all age groups and multiple markets, celebrating the cultural diversity of the region while at the same time bringing people closer together to deepen their knowledge of health and wellness in a fun and engaging way.”

Although registration is required, AIA Live will be hosted on AIA’s Healthy Living YouTube channel. This event allows AIA Vitality members to earn points. As part of the event AIA New Zealand ambassadors Ian Jones and Jess Quinn will be hosting activities. Jess Quinn will be running a body image workshop while Ian Jones will be holding a HIIT workout session.

“AIA Live will be hosted on AIA’s Healthy Living YouTube channel and AIA Vitality members will be able to earn AIA Vitality Points for taking part. By registering for the event, participants will also earn the chance to win significant prizes including trips to London to watch Spurs play and meet their first team players, as well as signed footballs from David Beckham, virtual cooking lessons with Jeremy Pang, and merchandise from our other ambassadors. AIA also plans to host similar days in China and India in early September, with tailored content for those markets.

AIA Live will be broadcast in New Zealand on Sunday 2nd August from 2PM-10PM. As part of the event, AIA New Zealand ambassadors Jess Quinn and Ian Jones will be taking part with Jess running a body image workshop and Ian demonstrating an at-home High Intensity Interval Training (HIIT) workout.” Click here to read more

In other news:

Kiwibank: Thousands of Kiwibank customers caught up in privacy breach

Southern Cross: Health screenings 101

AMP: KiwiSaver Still Attractive In ‘retirement’