Legal and regulatory update for the life and health insurance sector
6 Jun 2023 - The Australian Prudential Regulation Authority (APRA) has released the finalised reporting standards for insurers impacted by the introduction of the Australian Accounting Standards Board 17 Insurance Contracts (AASB 17). https://www.apra.gov.au/news-and-publications/apra-responds-to-consultation-on-minor-amendments-to-insurance-reporting
8 Jun 2023 - The FMA has filed civil proceedings against AA Insurance Limited for failing to apply multi policy and membership discounts, as well as guaranteed no claims bonuses to eligible customers’ premiums, resulting in $11.12 million in overcharges. https://www.fma.govt.nz/news/all-releases/media-releases/fma-files-proceedings-against-aa-insurance-for-alleged-fair-dealing-breaches/
8 Jun 2023 - MBIE: Regulations have been made to support the Financial Markets (Conduct of Institutions) Amendment Act 2022. Links to the regulations are below, along with details of an online information session that MBIE will be holding regarding the sales incentives regulations.
Links to the regulations
The regulations can be found at the following links:Financial Markets Conduct (Conduct of Institutions) Amendment Regulations 2023: https://www.legislation.govt.nz/regulation/public/2023/0123/latest/whole.html
These regulations cover the sales incentives prohibition based on volume or value targets and other provisions to ensure the regime works as intended, including provisions setting the requirements for participants in the Lloyd’s insurance market.
Financial Markets Conduct (Fees) Amendment Regulations 2023: https://www.legislation.govt.nz/regulation/public/2023/0124/latest/LMS829791.html These regulations set the licensing fee for financial institutions applying for a market services licence under the regime.
A commencement order has also been made, which will bring the regime into effect from 31 March 2025. As you may be aware, financial institutions will be able to apply for a licence from the FMA from 25 July 2023 and must be licensed by 31 March 2025 to continue providing relevant services to consumers. The FMA has advised that by submitting an application as early as possible, applicants will give themselves the best chance of ensuring their licence is processed before 31 March 2025. The commencement order can be found at the following link: https://www.legislation.govt.nz/regulation/public/2023/0122/latest/LMS830584.html