Legal and regulatory update for the life and health insurance sector

19 Jun 2024 - The Financial Markets Authority and the External Reporting Board have jointly produced a set of guides designed to help people understand the Climate-related Disclosures (CRD) regime and the information being provided in climate statements which are now starting to be published by climate reporting entities. https://financialmarketsauthority.cmail20.com/t/r-l-tdgjjx-btuitpxk-y/

19 Jun 2024 - The Australian Prudential Regulation Authority (APRA) has announced the release of the new digital prudential framework in the form of the "Prudential Handbook".  The Handbook brings all APRA's prudential standards, guidance and supporting information into one place; presents them in a digital format that can be easily navigated and searched; and caters to a range of different users across regulated industries and in the broader community. https://www.apra.gov.au/news-and-publications/apra-releases-new-digital-prudential-handbook

20 Jun 2024 - The Financial Markets Authority has published its Auditor Regulation and Oversight Plan 2024-2027. The plan sets out how the FMA aims to improve the audit quality of Financial Markets Conduct reporting entities. https://www.fma.govt.nz/news/all-releases/media-releases/fma-publishes-auditor-regulation-and-oversight-plan-2024-2027/

20 Jun 2024 - Professor Neil Quigley has been reappointed as Chair of the Reserve Bank of New Zealand Board for a further term of two years, until 30 June 2026. https://www.beehive.govt.nz/release/reserve-bank-chair-reappointed

21 Jun 2024 - The Financial Advice Code Committee is seeking feedback on proposed amendments to the standards of competence, knowledge, and skill in the Financial Advice Code. https://financialadvicecode.govt.nz/2024/06/21/update-21-june-2024-consultation-on-financial-advice-competence-knowledge-and-skill/

24 Jun 2024 - The FMA's new ‘Spotlight’ series looks at the different kinds of KiwiSaver funds and explores how they work. https://www.fma.govt.nz/library/articles/spotlight-on-conservative-funds/

24 Jun 2024 - Minister of Commerce and Consumer Affairs, Hon Andrew Bayly May 2024 diary released  with the following potential financial services sector related meeting noted:

• 2 May 2024 – MEET: FMA (FMA officials)

• 7 May 2024 – MEET: Commerce Commission Board

• 10 May 2024 – MEET: Institute of Financial Professionals NZ (Board members)

• 10 May 2024 –MEET: Kiwisaver Stakeholders Roundtable Lunch

• 16 May 2024 – ATTEND: Institute of Finance Professionals NZ Awards Dinner

• 17 May 2024 -CALL: Retirement Commissioner (Jane Wrightson)

• 22 May 2024 – MEET: External Reporting Board (Alex Burton, Michele Embling)

• 23 May 2024 – MEET: Commerce Commission (Commerce Commission Officials)

https://www.beehive.govt.nz/sites/default/files/2024-06/Proactive%20Diary%20Release%20May%2024%27%20Hon%20Andrew%20Bayly%20%281%29.pdf

Quotemonster Information Security Bulletin – Phishing Scams become more sophisticated

This is our seventh information security bulletin, all about the recent phishing attempts and what to do if you suspect you’ve fallen victim to phishing.

New phishing campaigns impacting New Zealanders

Recently there has been a surge in compromised accounts being used to send phishing emails from trusted or known contacts. These emails are being sent using Microsoft OneDrive/SharePoint sharing invitations and redirecting users to malicious websites.

If you click the link in a file sharing invitation email and are directed to a login page, make sure to check if the domain in the address bar matches the expected account login page (e.g. login.microsoftonline.com or login.live.com) before entering your information. Check this every time!

Just getting the email doesn’t put you at risk, but if you click the link or enter any information, your risk increases. You could be affected if you have you have provided login details and/or two-factor authentication codes to unfamiliar domain. Check for any unfamiliar logins, which may be from an odd location or an unknown device; and make sure to check for any unfamiliar email rules, which could delete, move, mark as read or forward messages.

What is phishing?

Phishing is a type of email scam where the sender attempts to get you to provide them with personal information, especially financial details. Often the sender will pretend to be a trustworthy organisation, like a bank or a government agency. Phishing emails will ask you to either click a link and enter personal information, open an attachment in the email, or buy a gift card or voucher.

These emails often look legitimate, using the same design and logos as the company or organisation they’re pretending to be. While it used to be relatively easy to spot a phishing email due to spelling errors or poor grammar, these scams are a lot more sophisticated now and will often use the same tone of language as the organisation they are purporting to be.

How do I spot a phishing email?

• Reputable companies and organisations will never ask you to provide personal information by email – any email you get that does this is a huge red flag.

• Double check the sender’s email address to see if it looks legitimate. Companies like banks won’t have email addresses that end in gmail.com or hotmail.com.

• Be wary of any unexpected emails.

• Any anomalies in the email’s tone, language or signature that differ from the sender’s usual style could point to a phishing email.

• Check where links lead by hovering your mouse over the link to see what the domain is – often a suspicious link will point to an address which isn’t related to the content of the email or the wording on the link.

What happens if I open the attachment?

Opening an attachment from a phishing email allows the sender to infect your computer with malware – malicious software. Malware can allow the senders to access your personal information without you knowing. Malware can spread through your programs and files, corrupting them and slowing down your computer or causing your computer to stop working. If you have malware on your computer, you are more vulnerable to other attacks, like ransomware.

What do I do if I receive a suspected phishing email?

If you suspect you have received a phishing email, do not click any links or open any attachments, these are typically in the form of payment requests or remittances. Contact the supposed sender through a different communication channel (e.g. call through to their contact centre – making sure to get their phone number from their website, not from details in the email) to verify whether the email is authentic or not. Report the email to your IT department and/or relevant authority (e.g. CERT NZ).

Want to know more?

CERT NZ is regularly updated with the latest scams targeting New Zealanders, you can view their alerts here https://www.cert.govt.nz/individuals/alerts/

We also highly recommend signing up to Cert NZ’s regular email updates by clicking on the ‘Subscribe to updates’ button at the top of every page on their website.

We are here to help! You can email us to ask for copies of past security bulletins. You can also review our outsource provider statement at the bottom right-hand corner of every page on the site at www.quotemonster.co.nz. More information about relevant certifications, policies, and procedures will be shared in future information security bulletins. We recommend you keep these with other compliance documents.

Please contact us on 09 480 6071 or at info@quotemonster.co.nz if you have any concerns or questions.

Stay vigilant and safe.

ISB 07-202406

Take your Business Statement of Advice (SoA) to the next level!

Take your Business Statement of Advice (SoA) to the next level and join us on Tuesday, 2 July 2024 11:00 am-12:00 pm as Aneel, our AdviceTech Lead demonstrates how to produce a business SoA supported with pricing and research on lump sum and Key Person Cover.

The next products on our radar are Rural Cover and Business Expenses, so keep an eye out for more information on this.

If you would like to register yourself or are interested in a personalised session for your organisation, please send us an email on aneel.ravji@qpresearch.co.nz

We look forward to seeing you there!

Setting up two-factor authentication

At Quotemonster, accounts need to be set up with two-factor authentication (2FA) - this adds an additional layer of security and reduces the risk of unauthorised access to your account by requiring a second verification step. This video will take you through how to set up 2FA using mobile or email.

Legal and regulatory update for the life and health insurance sector

13 Jun 2024 - The Australian Prudential Regulation Authority (APRA) has released its finalised prudential practice guide to help banks, insurers and superannuation trustees strengthen their management of operational risk and improve business continuity planning. https://www.apra.gov.au/news-and-publications/apra-finalises-cross-industry-guidance-on-operational-resilience

14 Jun 2024 - The Financial Markets Authority has published an information sheet specifically for smaller firms to assist in establishing and maintaining a Fair Conduct Programme (FCP) and applying for a Financial Institution (CoFI) licence.  https://www.fma.govt.nz/news/all-releases/media-releases/fma-provides-additional-support-to-smaller-firms-for-cofi-licensing/

17 Jun 2024 - The Reserve Bank of New Zealand has released Tara-ā-Umanga Business Expectations Survey: Design proposals following consultation and pilot, which outlines lessons learnt and resulting design proposals for their new Business Expectations Survey, BES, Tara-ā-Umanga. Changes include making the survey shorter and quicker for businesses to fill in; questions will focus on inflation expectations, wages, and unemployment; they will survey businesses in the primary industry; and they will not include very small businesses (those with fewer than 6 employees). https://www.rbnz.govt.nz/statistics/surveys/expectations-survey-information-for-survey-participants/business-expectations-survey-design-and-development

18 Jun 2024 - The External Reporting Board has launched the XRB Standards Navigator, which takes static PDF versions of XRB standards and presents them in a more accessible, dynamic and user- friendly format. https://standards.xrb.govt.nz/standards-navigator/

Explore New Research and RegTech at the Quotemonster Roadshow

We are thrilled to invite you to the Quotemonster Roadshow 2024! We have two new regtech tools to help keep you safe, some major new research to highlight, more than 175 legacy contracts researched, and much, much more.

What’s in it for you?

Access new research: Check out 200+ updated products researched including: the latest business insurance research, group health insurance research, and legacy products

Stay safe with new Regtech: Discover how Checkmonster, Premium History Reports, and Company reports can keep SOAs compliant

Expanded offer: Explore how to tackle new opportunities with business insurance SOAs and details on staying compliant while advising on existing business

What’s coming: We’re kiwi-owned and kiwi-based so it’s only natural we branch out and give you a sneak peek at Kiwimonster

Join us at a location near you to gain continuing professional development credits, learn how to save time in creating effective comparisons and recommendations, and drive your business forward.

Last year more than 700 advisers joined us for the roadshow with exclusive access to our speaker panel and lots of time to discuss the ins and outs of using research and our other tools to make powerful and robust recommendations.

Click on the link below to register for your town.

Taupo

Tauranga

Hamilton

West - Auckland

Christchurch

Invercargill

East/Central - Auckland

Napier

Palmerston North

Wellington

New Plymouth

Queenstown

Dunedin

South - Auckland

Whangarei

North - Auckland

Nelson

Click here to see all venues and dates.

We look forward to seeing you there!

AIA releases data on claims by age bracket

 AIA has released information on claims by age bracket – counter to what is often seen in the media about elderly people having the highest health costs, the age bracket that had the most claims in 2023 was those aged 50 – 59. This age group was paid out more than $197 million in 2023 out of $734.8 million in total claims.

Those aged 60 – 69, while still making up a large proportion of total claims, had  a total of more than $139 million in claims paid out, with $65.55 million being on life policies, while those aged 70 and over claimed just $71 million, with $50.52 million being against life policies. The lower level of claims of those aged over 70 could be due to people reducing or dropping their cover as they get older and no longer have dependants to consider or mortgages to pay off.

It comes as no surprise that those aged 20 – 29 had a low level of claims, with only $2.6 million paid in claims against life policies and $7.7 million paid on health policies in this age bracket.

More daily news:

Insurance Business Mag highlights ways AI can impact health insurance

MAS asks Members to vote on a special resolution at the AGM

mySolutions webinar 'Gregor Mansfield, FINLIFE' 19 June

Partners Life webinar 'licensing and advice obligations' 18 & 19 June

The FSC is holding a CRD Series session on 19 June

Whooping cough cases on the rise

New test can detect dementia before symptoms appear

Resolving quote errors

This video will take you through how to resolve the most common error messages on your quotes.

Naomi Ballantyne joins The Adviser Platform Board

TAP Group, the parent company of The Adviser Platform (TAP), has announced the appointment of Naomi Ballantyne as an independent director.

Naomi Ballantyne, ONZM, who has more than 40 years’ experience in the insurance industry and founded Partners Life in 2011, said

“Throughout my career I’ve proudly spearheaded some positive changes that have done great things for New Zealanders. I aim to continue that, helping the group stay ahead of the ever-changing insurance landscape and drive innovation that benefits the industry as a whole.”

More daily news:

Financial Advice NZ webinar 'Shaping the Future of Financial Advice in New Zealand' 19 June

Financial Advice NZ webinar 'How to use FMA's online regulatory return portal' 26 June

Chubb Life share their 2023 claims statistics

Chubb Life Support Person of the Year for 2024 was Amie Eves

Beth Marshall has been appointed to the role of Senior Group Business Partnership Manager

Chubb Life appoint Sebastian Krueger as Head of Technology

Study finds insurance and financial services experienced the highest increases in wage growth

Legal and regulatory update for the life and health insurance sector

22 May 2024 -  The Office of the Privacy Commissioner asks for submissions on new guidance, Poupou Matatapu – doing privacy well. https://privacy.org.nz/news/consultations/poupou-matatapu/

28 May 2024 - The Reserve Bank of New Zealand - has confirmed the activation of Debt-to-Income (DTI) restrictions and loosening of Loan-to-Value Ratio (LVR) restrictions. https://www.rbnz.govt.nz/hub/news/2024/05/reserve-bank-activates-debt-to-income-restrictions

30 May 2024 - The Financial Markets Authority is holding a webinar on how to apply for a CoFI licence at 11am on 5 June. To attend, email cofi@fma.govt.nz

30 May 2024 - The Financial Markets Authority publish findings from the FMA’s supervision activities and monitoring of Class 1 and 2 licensed financial advice providers.  https://www.fma.govt.nz/news/all-releases/media-releases/fap-monitoring-insights-report/

30 May 2024 - The Financial Markets Authority is holding a series of online sessions to help Financial Advice Providers submit their FAP regulatory returns.

Session 1 - Friday 14 June 2024 at 9am
Session 2 - Monday 24 June at 2pm
Session 3 - Monday 08 July at 10am
Session 4 - Tuesday 16 July at 10am

30 May 2024 - The Accident Compensation (Interest on Instalment Plans) Amendment Bill was introduced to Parliament https://bills.parliament.nz/v/6/00103c69-0b28-4ad1-a702-08dc80370942?Tab=history

3 Jun 2024 - The Australian Prudential Regulation Authority (APRA) has written to all APRA-regulated entities emphasising the critical role of data backups in cyber resilience. The letter details the common issues observed in backup practices that could hinder system restoration during an incident. APRA expects regulated entities to review their backup arrangements and address any identified gaps promptly. https://www.apra.gov.au/news-and-publications/apra-clarifies-expectations-on-cyber-security-and-adequacy-of-backups

4 Jun 2024 - The Chief Executive of the External Reporting Board (XRB), April Mackenzie, has resigned. https://www.xrb.govt.nz/news/latest-news/

7 Jun 2024 - The Council of Financial Regulators release their Quarterly Statement for June 2024. Kris Faafoi joined the meeting to discuss the insurance sector’s priorities, risks, and challenges. The conversation covered three priority areas: 1) insurance affordability; 2) resilience; and 3) the regulatory environment. https://www.cofr.govt.nz/news-and-publications/quarterly-statement-by-cofr-june-2024.html

11 Jun 2024 - The Reserve Bank of New Zealand has released the dates for publication of its quarterly Monetary Policy Statement, Monetary Policy Review decisions and the 6-monthly Financial Stability Report. The new dates cover the period from August 2025 to July 2026. https://www.rbnz.govt.nz/hub/news/2024/06/monetary-policy-announcement-and-financial-stability-report-dates-for-late-2025-and-2026

11 Jun 2024 - The Commerce Commission has filed criminal charges against Kiwibank Limited (Kiwibank), alleging systemic breaches of the Fair Trading Act. The breaches relate to issues that resulted in more than $7 million being incorrectly charged to over 36,000 customers for fees and interest rates in relation to home loans, credit cards and overdrafts, over a period of several years. https://comcom.govt.nz/news-and-media/media-releases/2024/kiwibank-faces-criminal-charges-following-issues-that-caused-over-$7m-in-overcharges