Chatswood serves the life and health insurance sector in New Zealand with market intelligence, data, and bespoke consulting services. Some of these are provided in conjunction with Quality Product Research Limited - a subsidiary that brings you Quotemonster.
We believe that good decisions are more likely to occur when we have good information about the market environment in which we operate. Intuitive leaps and creative decisions are always required, of course, but the more they are based on a firm foundation of observation, the better they tend to be.
Asteron Life to be sold to Resolution Life Australia
Resolution Life Australasia has acquired Asteron Life from Suncorp Group for a purchase price of $410 million.
Resolution Life Australasia has acquired Asteron Life from Suncorp Group for a purchase price of $410 million. Asteron Life has about 165 employees servicing more than 180,000 customers and their advisers. Resolution Life Australasia is part of Resolution Life, a global life insurance group with around 14 million policyholders.
The acquisition is still subject to New Zealand regulatory approvals, with the deal expected to complete in approximately nine months. If the purchase goes ahead, Resolution Life will become the second largest life insurer in New Zealand.
Tim Tez, Chief Executive Officer Resolution Life Australasia, said
“This acquisition further demonstrates our commitment to the Australasian market and our success in growing our business in the region… Asteron Life presents a compelling opportunity to continue to grow through new individual and group customers while continuing to support existing customers.
Resolution Life will support the Asteron Life business with its momentum and success in the New Zealand life insurance market. As a trusted life insurer, Asteron Life will continue to operate as a standalone New Zealand licenced life insurance company, under its existing brand in New Zealand and support advisers and their customers using the same dedicated team and management.”
More daily news:
The FSC publish their Life Insurance Industry Spotlight December 2023
The Triple A Advisers Association and Plus4 Insurance Solutions have merged
Seven Sharp featured Kate Dron chatting about what it means to be an actuary
Next version of NZCFS Level 5 has been submitted for approval with NZQA
Southern Cross Health Insurance has appointed Andrea Brunner as its Chief Operating Officer
Marsh releases ‘New Zealand insurance market update 2023: Year in review’
Deloitte and FintechNZ launch the 2024 New Zealand Fintech Pulsecheck
Associate Health Minister David Seymour says changes to the Medicines Act could be needed
Legal and regulatory update for the life and health insurance sector
21 March 2024 - Insurance Contracts Bill had first reading in Parliament. https://bills.parliament.nz/v/6/fcc98f82-e1f8-4aa4-6c02-08dc494421e8?Tab=history
25 March 2024 - The Reserve Bank of New Zealand has published an analytical note proposing improvements to the methodology used by the Reserve Bank of New Zealand to assess labour market indicators of inflationary pressure. Measuring inflationary pressure from the labour market can be improved by watching a narrow set of four high-quality indicators: 1) the job transition rate (the share of workers switching between jobs), 2) the job vacancy-to-unemployment ratio, 3) the unemployment rate, and 4) a survey measure of labour as a limiting factor for business production. https://www.rbnz.govt.nz/hub/news/2024/03/improving-how-we-measure-inflationary-heat-in-the-labour-market
26 Mar 2024 - The Reserve Bank of New Zealand has published Guidance for our regulated entities on managing climate-related risks. https://www.rbnz.govt.nz/hub/news/2024/03/guidance-issued-on-managing-climate-related-risks
26 March 2024 - The Financial Markets Authority has issued warnings to Southern Cross Medical Care Society (SCMCS) and Southern Cross Pet Insurance (SPCI) for failing to apply advertised discounts to each entities’ respective insurance products. The FMA is satisfied, and both entities accept, that they breached the fair dealing provisions of the Financial Markets Conduct Act by making false or misleading representations. The representations relate to the failure on each entities’ part to correctly apply advertised discounts to affected customers’ invoices, resulting in overcharged premiums. The FMA determined that the cause of each issue was due to poor controls and/or technical errors.
SCPI made an initial report to the FMA in November 2022 disclosing some of the contraventions and later reported more details. Following these disclosures, further enquiries from the FMA and an internal review in the wider Southern Cross Group, the extent of the contraventions was established.
SCPI failed to correctly apply the following discounts:
Additional pet discount
Direct debit discount
Southern Cross membership discount.
SCMCS failed to correctly apply the following discounts:
Free child discount
Healthy lifestyle rewards discount
Low claims discount.
The total amount of SCPI premiums overcharged was $424,508, affecting 7,542 customers, approximately 1.28% of its customer base. SCMCS overcharged $161,547 across 1,957 customers, approximately 0.2% of its customer base.
https://www.fma.govt.nz/news/all-releases/media-releases/fma-warns-southern-cross/
28 Mar 2024 - The Council of Financial Regulators has released an updated Regulatory Initiatives Calendar for the financial sector for Q1 2024. https://www.cofr.govt.nz/files/regulatory-initiatives-calendar/regulatory-initiatives-calendar-q1-2024.pdf
28 Mar 2024 - The FMA is warning the public to be cautious after fake documents claiming to be issued by the FMA were sent out as part of what appears to be a ‘recovery scam’ - where previous victims of financial crimes are targeted by criminals promising to help get lost money back. https://www.fma.govt.nz/library/warnings-and-alerts/
28 Mar 2024 - DIA encourages reporting entities to get RealMe verified before annual reports are due. From 1 July 2024, you’ll be able to file your AML/CFT annual report via AMLOnline. https://www.dia.govt.nz/AML-CFT-Get-your-RealMe-verified-early-this-annual-reporting-season
28 Mar 2024 - The FMA has said that overtime they will assess whether their regulatory framework needs strengthening to support better deployment of Generative Artificial Intelligence. https://www.fma.govt.nz/library/opinion/gen-ai/
28 Mar 2024 - The Commerce Commission sees "good reasons" to recommend designation of the interbank payment network to Commerce and Consumer Affairs Minister Andrew Bayly. https://www.interest.co.nz/banking/127024/commerce-commission-wants-more-influence-over-interbank-payments-potentially
Asteron Life updates personal and business insurance products
Asteron Life has unveiled a raft of updates to their personal and business insurance products.
Asteron Life has unveiled a raft of updates to their personal and business insurance products.
The changes include clarification of existing policy terms to ensure greater transparency and ease of understanding and a range of new and enhanced benefits.
The new benefits and enhancements include:
Repatriation benefit on personal and business life cover
Advancement benefit for terminal conditions on personal life cover
Shortened waiting periods for income protection and mortgage and living cover
Cover conversion benefit on business disability cover and farmers disability cover
Enhancements to the Funeral benefits on life cover, kids cover and business expenses
Enhancements to two definitions for trauma recovery and 11 definitions for major trauma
The requirement for 14 days total disability as part of the waiting period has been removed from business disability cover, farmers disability cover and business expenses cover
Introduction of a premium and cover suspension to the optional needlestick benefit
Removal of some restrictions from various benefits such as specific injury support – lump sum and monthly, trauma reinstatement option and the crisis benefit within the optional immediate assist package
Claire Sutton, Executive Manager Life Portfolio and New Business at Asteron Life said
“It's key that our range of covers continue to add value for our customers, policies and terms are easy to understand, and insurance remains as affordable and accessible as possible. We know that these things really matter for our customers and advisers. We also worked hard to ensure that these improvements have not increased customer premiums, given we know how tough it is for many New Zealanders right now.”
More daily news:
AIA extend one month’s premium free on qualifying new policies
mySolutions webinar 'Quotemonster Research' 9am 3 April
mySolutions roadshows are running in May
Partners Life sponsor Cheques and Balances podcast
Commerce Commission to meet with Financial Advice New Zealand after accused of being out of touch
Quarterly rate review results in rising premiums at nib
nib has reviewed its health insurance premiums. Current members’ premiums are reviewed annually at their policy anniversary, with the increases ranging from 9% to 16%, as per below.
Premiums for prospective new members will be updated from 1 April 2024, with new rates being automatically updated in nibAPPLY.
You can find out more in their frequently asked questions here.
More daily news:
mySolutions webinar 'Ark Adventures' 9am 27 March
Craig Tyson leaves head of Australasian listed property role at ANZ investments
Maaike van Tol leaves head of asset allocation role at ANZ investments
FSC publish KiwiSaver Industry Spotlight December 2023
Commerce Commission says mortgage advisers at risk of being ‘unduly influenced’ by commissions
Controversy has arisen based on the back of some comments John Small, Commerce Commission chair has made around the mortgage advice sector, on the back of the Commerce Commission releasing a draft report from the market study on the banking sector that has recently been released.
Controversy has arisen based on the back of some comments John Small, Commerce Commission chair has made around the mortgage advice sector, on the back of the Commerce Commission releasing a draft report from the market study on the banking sector that has recently been released.
Small told journalists that he’s ‘not sure if you went to a mortgage broker that they would tell you’ about how they only work with certain banks and the different commissions advisers can receive, stating,
“From the broker's point of view, they will get different amounts of money from different banks. I'm not sure when you go to a mortgage broker that they would declare that to you.”
There has been a lot of feedback from mortgage advisers on the article posted on Good Returns, qualifying that they both state which banks they work with and the fees they receive from each bank in their disclosure statements all clients receive.
We study disclosure documents and note that they are all good at disclosing the range of lenders that the mortgage adviser offers to clients. The information is in the public disclosure document and is clear. The range that most mortgage advisers have access to through their aggregator is usually extensive as well - they are subject to commercial pressures and operate under strong incentives to ensure that they have relationships with at least the main lenders. Most have longer lists. Although we cannot access robust statistical information on disclosure on specific fees and commissions once a preferred lender is established, we note that there is clear guidance on how to make effective commission disclosure. So it would be interesting to hear more details on the experiences are leading the Commerce Commission to this viewpoint. On the other hand, the comments about AML/CFT limiting access to even basic banking services ring true to many of us in the sector.
More daily news:
Financial Advice NZ central branch meeting 26 March, Palmerston North
Legal and regulatory update for the life and health insurance sector
22 Feb 2024 - The Commerce Commission has issued an Open Letter to participants of New Zealand’s retail payment system setting its expectations of the industry to deliver a more competitive environment that can give Kiwis new options to pay for goods and services. https://comcom.govt.nz/news-and-media/media-releases/2024/comcom-calls-for-banks-to-pick-up-the-pace-on-payment-options
22 Feb 2024 - Assistant Governor/General Manager Transformation, Innovation, People and Culture Juliet Tainui-Hernandez has resigned. She will be leaving RBNZ at the end of April 2024. https://www.rbnz.govt.nz/hub/news/2024/changes-to-rbnz-executive-leadership-team
26 Feb 2024 - The Commerce Commission has released an updated Cartel Leniency and Immunity Policy and Template Leniency Agreement which removes the option for a person to seek criminal immunity and/or civil leniency for a ‘naked’ cartel attempt. https://www.bellgully.com/insights/commerce-commission-updates-cartel-leniency-and-immunity-policy/
Legal and regulatory update for the life and health insurance sector
5 Feb 2024 - The Australian Prudential Regulation Authority (APRA) and Australian Securities and Investments Commission (ASIC) have jointly released a letter to all authorised deposit-taking institutions (ADIs) and their authorised non-operating holding companies (NOHCs) on the Financial Accountability Regime (FAR). https://www.apra.gov.au/news-and-publications/apra-and-asic-release-letter-on-financial-accountability-regime-far-adi
5 Feb 2024 - Minister of Commerce and Consumer Affairs, Hon Andrew Bayly November/December 2023 diary released with the following potential financial services sector related meeting noted:
1 Dec 2023 – MEET: CCCFA Stakeholders Meeting
1 Dec 2023 – MEET: CoFI Stakeholders meeting
1 Dec 2023 – MEET: Commerce Stakeholders Meeting
11 Dec 2023 – MEET: Financial Markets Authority (FMA Staff)
11 Dec 2023 – MEET: MinterEllison lawyers re CCCFA
14 Dec 2023 – MEET: Chair of Banking Ombudsman Scheme (Miriam Dean)
20 Dec 2023 – MEET: Financial Services Federation (Lyn McMorran and Katharine Mcgie)
6 Feb 2024 - The Australian Prudential Regulation Authority (APRA) has published new entries to frequently asked questions on the Australian Accounting Standards Board 17 (AASB17) collections. https://www.apra.gov.au/news-and-publications/apra-publishes-aasb17-update-to-insurance-frequently-asked-questions
12 Feb 2024 - The Commerce Commission has published a statement of preliminary issues relating to an application from Payments NZ Limited (Payments NZ) seeking authorisation to work with API providers and third parties to develop arrangements that, according to Payments NZ, will facilitate a more well-utilised, secure and innovative open banking framework. https://comcom.govt.nz/news-and-media/media-releases/2024/statement-of-preliminary-issues-released-for-payments-nzs-application-seeking-authorisation-to-further-develop-its-open-banking-framework
12 Feb 2024 - Financial Services Council released its Life Insurance Industry Spotlight statistcs for the September 2023 quarter https://blog.fsc.org.nz/life-insurance-industry-spotlight-september-2023
14 Feb 2024 - The Pae Ora (Healthy Futures) (Improving Mental Health Outcomes) Amendment Bill was read a first time and referred to the Health Committee. https://bills.parliament.nz/v/6/955109f7-830e-4b94-2089-08dba9b9dfac?Tab=history
15 Feb 2024 - Minister of Commerce and Consumer Affairs, Hon Andrew Bayly November/December 2023 diary released with the following potential financial services sector related meeting noted:
16 Jan 2024 – ZOOM: Financial Markets Authority (Samantha Barrass & Edwin Metson)
23 Jan 2024 – MEET: Financial Advice NZ (Tony Dench & Heather Roy)
23 Jan 2024 – MEET: Fin Cap (Ruth Smithers)
23 Jan 2024 –MEET: CCCFA Round Table (MBIE Officials, Invited guests)
25 Jan 2024 – MEET: CEO Insurance Council (Tim Grafton)
26 Jan 2024 -MEET: Financial Markets Authority Board (FMA Board & Samantha Barrass)
30 Jan 2024 – MEET: Consumer NZ (Jon Duffy, Gemma Rasmussen, Aneleise Gawn)
30 Jan 2024 – MEET: Commerce and Consumer Affairs Officials (MBIE Officials)
31 Jan 2024 –SPEAK: Financial Services Council (Invited Guests)
31 Jan 2024 – MEET: Banking Ombudsman (Nicola Sladden)
31 Jan 2024 – MEET: Commerce Commission (MBIE & ComCom Officials)
31 Jan 2024 –MEET: Chair of Commerce Commission (John Small & Vanessa Horne)
Legal and regulatory update for the life and health insurance sector
2 Nov 2023 - Assistant Treasurer Stephen Jones outlined a new scam website takedown capability implemented by ASIC. Since July 2023, ASIC has disrupted scam activity by initiating takedowns of more than 2,500 investment scam and phishing websites. https://asic.gov.au/about-asic/news-centre/find-a-media-release/2023-releases/23-290mr-asic-s-new-website-takedown-capability-knocks-out-over-2-500-investment-scam-and-phishing-websites/
3 Nov 2023 - Adrian Orr delivered a keynote speech at the Chapter Zero Breakfast in Auckland, titled 'No longer tomorrow’s problem: How the Reserve Bank is working with its stakeholders to respond to Climate Change' https://www.rbnz.govt.nz/news-and-events/events/2023/november/how-the-reserve-bank-is-working-with-its-stakeholders-to-respond-to-climate-change
6 Nov 2023 - The Commerce Commission has joined competition, consumer protection, and economic regulators from across the Pacific to share intelligence, investigative techniques, and best practice in a newly formed initiative - the Pacific Island Network of Competition Consumer and Economic Regulators or PINCCER. https://comcom.govt.nz/news-and-media/media-releases/2023/competition,-consumer-and-economic-regulatory-authorities-form-network-to-promote-well-functioning-markets-in-the-pacific
6 Nov 2023 - Privacy Commissioner's Annual Report for the year ending 30 June 2023 is published. https://privacy.org.nz/publications/corporate-reports/annual-report-of-the-privacy-commissioner-2023/
7 Nov 2023 - The Reserve Bank of New Zealand announces key decisions on review of policy for branches of overseas banks. Key decisions in the Branch Review include:
restricting all branches in New Zealand to engaging in wholesale business (that is with corporates, institutions and other wholesale investors), meaning they could not take retail deposits or offer products or services to retail customers;
limiting the maximum size of a branch to NZ$15 billion in total assets; and
continuing to allow the dual registration of branches, provided:
the relevant subsidiary and branch are sufficiently separate, and any identified risks are mitigated by specific conditions; and
dual-registered branches only conduct business with large wholesale customers.
https://www.rbnz.govt.nz/have-your-say/review-of-policy-for-branches-of-overseas-banks
Legal and regulatory update for the life and health insurance sector
8 Aug 2023 - The Reserve Bank of New Zealand has published the results of its first life insurance industry stress test (LIIST). The 2022/23 LIIST demonstrates the largest insurers in the sector are well placed to withstand severe economic and insurance shocks, while continuing to pay out on policy claims. https://www.rbnz.govt.nz/hub/news/2023/08/first-rbnz-life-insurance-stress-test-shows-industry-well-placed-to-withstand-severe-shocks
8 Aug 2023 - ASIC outline their key enforcement priorities for 2023 which include greenwashing, targeting the poor design and distribution of financial products, pricing promises in insurance, protecting financially vulnerable consumers from predatory lending practices or high-cost credit, and directors’ duties and governance failures. https://asic.gov.au/about-asic/news-centre/speeches/maintaining-a-strong-focus-on-enforcing-the-law/
9 Aug 2023 - Paul Gregory's speech on 'Greenwashing - a view from the regulator' at the Responsible Investment Association Australasia (RIAA) Conference Aotearoa NZ 2023 is published https://www.fma.govt.nz/library/speeches-and-presentations/speech-by-paul-gregory-at-riaa-conference-2023/
9 Aug 2023 - NZ Police Financial Intelligence Unit released “The Suspicious Activity Report” for June 2023 https://www.police.govt.nz/sites/default/files/publications/fiu-monthly-report-june2023.pdf
10 Aug 2023 - The Reserve Bank of New Zealand – Te Pūtea Matua (RBNZ) has published the stress test scenario that our largest banks are using to test their ability to withstand severe, but plausible long-term climate-related challenges. https://www.rbnz.govt.nz/hub/news/2023/08/rbnz-releases-too-little-too-late-climate-resilience-stress-test-scenario
10 Aug 2023 - The Commerce Commission has outlined the key products and issues it proposes to explore in the market study into personal banking services, with the release of the Preliminary Issues paper. https://comcom.govt.nz/news-and-media/media-releases/2023/commerce-commission-outlines-proposed-focus-for-market-study-into-personal-banking
11 Aug 2023 - Findings from the latest Reserve Bank of New Zealand - Te Pūtea Matua Relationship Charter survey show significant improvements among insurer stakeholders in their ratings of the relationship with RBNZ. Key suggestions for what the Reserve Bank could do differently to improve the relationship included more proactive and personal contact from RBNZ, and flexibility on regulatory projects. 90% of bank participants gave an overall rating of ‘good’ or ‘very good’ for the relationship. Insurer participants’ ratings of the overall relationship with the Reserve Bank have increased significantly since last year (92% rating the relationship as ‘good’ or ‘very good’ in 2023 compared to 72% in 2022). https://www.rbnz.govt.nz/hub/news/2023/08/rbnzs-relationship-charter-shows-continued-growth-in-regulatory-relationships
Legal and regulatory update for the life and health insurance sector
27 Jul 2023 - Micheal Hewes, FMA Director – Deposit Taking, Insurance, and Advice presented at the Financial Markets Law conference on the conduct of Financial Institutions regime https://www.fma.govt.nz/library/speeches-and-presentations/michael-hewes-presents-at-the-financial-markets-law-conference/
28 Jul 2023 - Minister of Commerce and Consumer Affairs, Hon Dr Duncan Webb, June 2023 diary released with the following potential financial services sector related meeting noted:
• 15 June 2023 – Meeting with Kiwibank (CE)
• 19 June 2023 – Meeting with NZ Bankers Association; Kiwibank; Westpac; ASB; ANZ; BNZ; Cooperative Bank (CE's)
• 19 June 2023 – Meeting with TSB; Heartland Bank (CE's)
• 22 June 2023 –Meeting with NZ Bankers Association (CE, Engagement Director)
• 28 June 2023 - Meeting with FMA (Chair, CE)
• 28 June 2023 - Speech at Better Banking Report Launch
• 29 June 2023 - Meeting with Consumer Data Rights Stakeholders
https://www.beehive.govt.nz/sites/default/files/2023-07/June%202023%20Proactive%20Diary%20Hon%20Dr%20Duncan%20Webb%20.pdf
28 Jul 2023 - The FMA's climate-related disclosures experts discuss the key concepts of scenario analysis and outline FMA’s compliance expectations. https://www.fma.govt.nz/library/speeches-and-presentations/presentation-scenario-analysis/
31 Jul 2023 - The Reserve Bank of New Zealand – Te Pūtea Matua has released its first consultation material on implementing the recently enacted Deposit Takers Act 2023 (the Act), with proposals for the Proportionality Framework and for levies to fund the Depositor Compensation Scheme (DCS). Consultation closes 25 September 2023. https://www.rbnz.govt.nz/hub/news/2023/07/first-stage-of-consultation-on-deposit-takers-act-implementation-launches
31 Jul 2023 - The Commerce Commission is looking at ways to remove barriers to more innovative payment options that would allow Kiwis to make in-person payments directly between bank accounts, as a low-cost alternative to current card payment options. The Commission is seeking views on its characterisation of the issues and opportunities in this space, responses are due by 4pm on 25 September 2023 https://comcom.govt.nz/news-and-media/media-releases/2023/commission-explores-pathways-for-more-innovative-payment-options