Southern Cross creates new role to oversee hospital network

Southern Cross Healthcare has announced Roger Cronin as the new chief operating officer responsible for the organisation’s 10 wholly owned hospitals. The new role’s focus is on overseeing the operational performance of the hospitals and acting as a strategic link between the hospitals and the national support office.

Cronin was recently CEO of PresMed Australia, a private healthcare provider specialising in surgical day-stay procedures for ophthalmology and ENT patients. Cronin has held a variety of leadership roles in major public hospitals and has worked with the New South Wales Ministry of Health. Cronin will commence his new role in late November.

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Westpac campaign highlights dangers of impulse buying and debt accumulation

mySolutions webinar 'Panel Discussion' 4 December

The IFSO Scheme welcomes changes introduced by the Contracts of Insurance Act 2024

Government announces funding for 50 new senior doctors, plus nurses and other health professionals

The RBNZ has cut the Official Cash Rate, taking it from 4.75% to 4.25%

FSC sees opportunities for increased contributions to KiwiSaver

KiwiSaver has been in the news recently with funds under management surpassing the $100b mark and the Financial Markets Authority (FMA) releasing their KiwiSaver Annual Report 2024. The Financial Services Council (FSC) have welcomed the insights from the FMA report and said they see opportunities for increased contributions. Kirk Hope, CEO of the FSC said,

“With KiwiSaver funds under management surpassing the $100bn mark, this is a great opportunity to look at KiwiSaver contribution settings and how we can make it affordable over time so that New Zealanders can have dignity in retirement.”

“Increasing contribution levels, in combination with financial literacy that helps New Zealanders understand the benefits and mechanisms of KiwiSaver, are key to driving better retirement outcomes,”

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nib join the Sustainable Business Council NZ

Asteron Life, Chubb Life & Fidelity Life are finalists at the New Zealand Insurance Industry Awards

Fidelity Life employees have unlimited access to LinkedIn’s library of courses

IFSO take their first enforcement proceeding against a Participant

Jon-Paul Hale recommends advisers are clear in explaining unfunded medicines

Workplace Savings End of Year Function 2024 on 4 November

Fidelity Life offer advisers opportunity to go on professional development course

FinTech NZ Annual Meeting on 6 November

Retirement Commissioner says there’s a “crucial need” for all political parties to support a stable retirement policy

Mental Health Minister announces Child and Youth Mental Health and Addiction Prevalence Survey

IFSO reminds kiwis to review their insurance policies

The Insurance & Financial Services Ombudsman (IFSO) Scheme is reminding New Zealanders to thoroughly review their insurance policies. Karen Stevens, the Insurance & Financial Services Ombudsman, has noted that some policyholders are unaware of specific limitations which can leave them without cover for something they thought was included. Stevens has cautioned kiwis of the need to familiarise themselves with their policy terms and conditions, paying particular attention to exclusions, as it is the consumer’s responsibility to understand the terms laid out in the policy.

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Southern Cross Healthcare is looking for a Head of Enterprise Risk & Assurance

Rachel Wilson joins Fidelity Life as Business Manager Wellington region

Southern Cross release new online mindfulness practice available free to all New Zealanders

Southern Cross Healthcare  sponsors Round the Bays fun runs, including Christchurch

Kiwibank launch a new podcast

The Government has introduced The Smokefree Environments and Regulated Products Amendment Bill (No 2), aimed at preventing youth vaping

The General Practice Owners Association has laid a complaint with the Commerce Commission over “unfair” and “illegal” contracts

Commerce Commission release banking competitiveness study

The Commerce Commission have released the Final Report on personal banking competitiveness. The 14-month market study found

“a stable, highly profitable, two-tier oligopoly with no disruptive maverick and a lack of obvious or aggressive price competition.”

The study found little strategic differentiation between the major banks and found their growth targets focus on maintaining market share and protecting margins and profitability, limiting competitiveness and innovation.

The Commission’s recommendations to Government can be grouped into four key areas and broadly speaking involve making Kiwibank a more disruptive competitor, accelerating progress on open banking, ensuring the regulatory environment better supports competition and empowering consumers.

While both the Finance and Mortgage Advisers Association of New Zealand (FAMNZ) and Financial Advice New Zealand (FANZ) have welcomed the report, after criticising the draft report which was released in March.  Since then, the Commerce Commission has engaged with both associations as well as other representatives from the mortgage industry to better understand the role advisers work.

Leigh Hodgetts, country manager of FAMNZ, has called out the Commerce Commission’s statement that advisers should put more emphasis on price, saying that there are many factors around individual circumstances that must be considered when a consumer takes a loan.

Financial Advice New Zealand said it would be seeking clarity on the recommendations, in an effort to determine any unintended consequences.

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Tony Vidler recommends advisers can evidence why their advice was suitable at the time

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Asteron Life sale should be completed by the end of January 2025

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Financial Advice NZ Central Branch Meeting 27 August

Financial Advice NZ webinar 'Financial advice is moving from product to people and from money to meaning' 4 September

Southern Cross Health Insurance opens nominations for Wayfinder Awards

ASB CEO Vittoria Shortt would like to see KiwiSaver policy changes

The FMA publish the latest 'Money with Mary'

IFSO needs to incorporate as a limited liability company for merger

Suncorp Group net profits after tax are up by nearly 12%

Legal and regulatory update for the life and health insurance sector

1 Jul 2024 - The Commerce Commission has reached a preliminary view that it should grant conditional authorisation to Payments NZ Limited to work with current and future API providers (i.e., banks) and third parties (e.g., fintechs) to develop and apply a partnering framework relating to the provision of API services by API providers to third parties. https://comcom.govt.nz/news-and-media/media-releases/2024/commerce-commission-issues-draft-determination-on-payments-new-zealands-application-to-further-develop-its-open-banking-framework

8 Jul 2024 - ASIC issued its 2023-24 Cost Recovery Implementation Statement (CRIS). The CRIS outlines estimated regulatory costs and levies for each industry subsector to help entities plan and budget for levies and fees to be charged. https://asic.gov.au/about-asic/news-centre/news-items/asic-releases-estimated-industry-funding-levies-for-2023-24/

11 Jul 2024 - The External Reporting Board publish an interim report on New Zealand Climate-Related Disclosure Framework evaluation. https://www.xrb.govt.nz/news/insights/aotearoa-new-zealand-climate-related-disclosure-framework-evaluation-interim-report-published/

11 Jul 2024 - Financial limits for complaints are being raised across the four approved financial dispute resolution schemes from 18 July 2024. The Banking Ombudsman Scheme, the Insurance & Financial Services Ombudsman Scheme, Financial Services Complaints – a Financial Ombudsman Service, and the Financial Dispute Resolution Service will have the same thresholds for complaint values and compensation, providing consistency for consumers across the sector. The key change is raising the maximum compensation to $500,000 +GST. https://fdrs.org.nz/resources/news/increased-compensation-limits-for-financial-disputes/

11 Jul 2024 - The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have published new information to help insurers and superannuation trustees prepare for the commencement of the Financial Accountability Regime (FAR). The FAR already applies to the banking industry and takes effect for the insurance and superannuation industries from 15 March 2025.

New information includes:

• an amendment to the Regulator rules, which prescribes key functions information for inclusion in the FAR register of accountable persons for insurance and superannuation industries; see Financial Accountability Regime Regulator Rules Amendment Instrument No. 1 of 2024 and Financial Accountability Regime Act (Information for register) Regulator Rules 2024; and

• a joint ASIC and APRA letter summarising key issues raised during consultation and their response, including the concept and application of key functions.

https://www.apra.gov.au/news-and-publications/apra-and-asic-issue-final-rules-and-information-for-financial-accountability

12 Jul 2024 - The office of the Privacy Commissioner has published their Statement of Performance Expectations 2024-2025. https://privacy.org.nz/publications/corporate-reports/statement-of-performance-expectations-2024-2025/

15 Jul 2024 - The Office of the Privacy Commissioner has launched a free online toolkit today to help businesses and organisations do privacy well. https://privacy.org.nz/publications/statements-media-releases/new-privacy-toolkit-set-to-support-business-and-organisations/

Graeme Lindsay has died

Graeme Lindsay, a life insurance industry stalwart, has lost his battle with cancer. Throughout his career Lindsay worked as an adviser, was involved in an industry association, was a member of Million Dollar Round Table, and founded Strategy Financial Services, a business that provides analysis to life and health insurance agents. He was a competitor of ours and yet we will miss his presence in the industry. Whether he was writing about products or insurers he was always keen to highlight the value of good insurance coverage and identify issues that needed to be addressed. He was a pioneer in our sector.

Last December, Lindsay posted on LinkedIn explaining his situation and advocating for everyone to review their insurance cover and make sure they had the right policies and cover in place.

The funeral for Lindsay is scheduled to be held on Monday.

We will miss his voice in our sector.

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Generate KiwiSaver report finds KiwiSaver Fees lower than Australia and UK

Pharmac has named two targeted cancer treatments that it intends to fund: Keytruda and Opdivo

nib quarterly premium review results in price increases

As part of a quarterly review, nib have reviewed their health insurance premiums. The changes affect both current members renewing their policies and new policies sold this quarter. The changes for renewing customers are below, with the change in premium for each member varying depending on the benefits, options and excess they have selected, who the policy covers and whether the premium includes a policy fee.

Premiums included in quotations for prospective new members will be updated from 1 July 2024 and the new rates will be automatically updated in nibAPPLY. Quotations dated before 1 July 2024 will be honoured if the application goes into force within 30 days of the quotation date.

More details can be found on nib’s FAQ page or advisers can contact their nib Adviser Partner Manager.

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Fidelity Life ask advisers what their next adviser council should cover

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Fidelity Life extend adviser feedback survey deadline to 21 July

Financial Advice New Zealand webinar 'Professional Development Planning' 10 July

mySolutions webinar 'The Compliance Refinery - AML/CFT Changes' 3 July

The FMA and the Retirement Commission remind people to do a KiwiSaver health check

Complaint to IFSO results in ex gratia payment for clients

AMP’s former head of advice sues The Australian newspaper for defamation over what he says were false allegations he misled ASIC

Legal and regulatory update for the life and health insurance sector

16 May 2024 - Office of the Privacy Commissioner clarifies guidelines around 72 hours notification period for privacy breaches. https://privacy.org.nz/publications/statements-media-releases/how-long-is-72-hours/

16 May 2024 - The Customer and Product Data Bill was introduced to Parliament. https://bills.parliament.nz/v/6/770a5f4e-2185-4f1f-1395-08dc75512299?Tab=history

20 May 2024 - A recent study by the office of the Privacy Commissioner of New Zealander’s attitudes to privacy shows higher levels of concern among Māori. https://privacy.org.nz/publications/statements-media-releases/maori-are-more-concerned-about-privacy-in-every-way/

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

• 4 April 2024 – MEET: Westpac (Pip Greenwood)

• 4 Apr 2024 – MEET: Suncorp (Jimmy Higgins and Clayton Cosgrove)

• 8 Apr 2024 – VISIT: Commerce Commission (Commerce Commission Staff)

• 10 Apr 2024 –MEET: Insurance and Financial Services Ombudsman (Karen Stevens)

• 10 Apr 2024 – MEET: AIA NZ (Nick Stanhope)

• 10 Apr 2024 -MEET: Commerce Commision (Commerce Commission Officials)

• 23 Apr 2024 – MEET: Westpac (Catherine McGrath)

• 23 Apr 2024 – MEET: Takeovers Panel (Takeovers Panel members)

• 30 Apr 2024 –MEET: Commerce Commission (Commerce Commission Officials)

https://www.beehive.govt.nz/sites/default/files/2024-05/Proactive%20Diary%20Release%20Apr%2024%27%20Hon%20Andrew%20Bayly.pdf

Contracts of Insurance Bill

Commerce and Consumer Affairs Minister Andrew Bayly has said that insurance law reforms are “long overdue”, with some laws over 100 years old. Bayly has said his three focus points for the new Contracts of Insurance Bill are to make it easier for consumers to get insurance, for consumers to better understand what they’ve signed up for and for consumers to get paid out more quickly. Bayly has said the government intend to pass the Bill before the end of 2024.

The Insurance & Financial Services Ombudsman, Karen Stevens, has said she looks forward to insurance contracts becoming fairer and easier to understand for consumers.

“… Many consumers don’t understand what information they are supposed to tell their insurer, and the consequences if they don’t disclose this information.

Forgetting to tell the insurer something regarded as being material to the risk of providing a consumer with insurance (i.e. whether the insurer would have provided cover or not, and on what terms) can be fatal.

I’m pleased that this law change will require insurers to ask clear and relevant questions, making it easier for consumers to know what information they have to provide.”

Submissions on the Bill are open until 3 June 2024. The Financial Services Council (FSC) is urging members to feedback and has circulated an industry submission process document.

We think that all the questions adviser-focused insurers ask are clear and relevant and that in a full underwriting environment it is clear to customers what they should be disclosing. But this is not the full scope of the changes that the law will bring in. Bell Gully’s comment covers this well:

“Most submitters welcomed the overall approach taken in the exposure draft, which proposed to consolidate, modernise and clarify a number of outdated statutes into one primary statute governing insurance policies generally, as well as the specific relationship between insurers and their customers.  The Bill also proposed to bring about significant changes in the law of insurance in New Zealand – particularly relating to the duty of disclosure owed by insureds, the duty of utmost good faith, the remedies available to a party who has a claim against an insolvent insured, and the application of the unfair contract terms regime to insurance policies. The details of some of these substantive changes were met with resistance, including in our submission, primarily due to concerns that the reforms may create significant uncertainty for both insureds and insurers.”

For more details on the content of the Bill, we suggest that you check out their summary here. Steve Wright also outlines seven potential changes facing advisers and insurers here.

Government has repealed parts of the Credit Contracts and Consumer Finance Act

The government has repealed some parts of the Credit Contracts and Consumer Finance Act (CCCFA).  Commerce Minister Andrew Bayly said of the affordability regulations introduced to the CCCFA in December 2021

“These regulations created unnecessary compliance costs and are an excessive barrier for lending. And worse, the regulations failed to protect the most vulnerable Kiwis – the very people they were intended to safeguard”

The time to process loans increased substantially, with Minister Bayly saying some lenders had told him small loans that used to take two hours to process took up to eight hours to process under the new regulations.

Additional reforms to the act include:

• Improving dispute resolution to better protect consumers.

• Exempting councils from the CCCFA so they are able to offer low-risk financial products to help households improve their energy efficiency by installing heat pumps and insulation.

• Removing duplicate reporting requirements.

We hope that the relaxation on small loans flows through to banks being able to offer more flexibility to people with what amounts to a timing issue, rather than a lending issue. But we know that lending rules are notoriously difficult to manage. This is one of the reasons why aspects of the wider programme are of more interest.

Minter Ellison puts the changes into context within a program of changes to financial law and regulation which the government has planned.

Of particular interest are the changes in supervisions structures with the responsibility for administering the CCCFA moving from the Commerce Commission to the Financial Markets Authority. Lending is a financial product, and we think the Financial Markets Authority, with conduct supervision responsibilities and, essentially, all the other financial products, is probably a good home for this law from an ongoing regulation perspective.

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