Fidelity Life financial strength rating reaffirmed

Fidelity Life, New Zealand’s largest locally owned life insurer, had its A- (Excellent) financial strength rating affirmed by AM Best. The outlook for the rating is stable, and according to AM Best, reflects Fidelity Life’s ‘very strong’ balance sheet.

Fidelity Life Chief Financial Officer Simon Pennington said

“This A- rating from AM Best is a reassuring endorsement of our business's financial health and stability. As a life insurer, this independent assessment gives advisers confidence in partnering with us, and for customers, it ensures peace of mind in our ability to pay claims.”

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11 Mar 2025 - Assistant Governor/General Manager Information, Data and Analytics Kate Kolich will be leaving RBNZ at the end of March 2025. https://www.rbnz.govt.nz/hub/news/2025/03/general-manager-information-data-and-analytics-departs

13 Mar 2025 - The FMA publishes speech by Craig Stobo to the Institute of Directors and New Zealand Initiative. https://www.fma.govt.nz/library/speeches-and-presentations/speech-by-craig-stobo-to-the-institute-of-directors-and-nz-initiative/

13 Mar 2025 - Final report on the 2023/24 Annual review of the Pharmaceutical Management Agency (PHARMAC) was published by the Health Committee. https://selectcommittees.parliament.nz/v/6/c493f47b-6545-4a41-1243-08dd61b37e3c

14 Mar 2025 - The FSC publish their March 2025 Regulatory Forecast, available to FSC members.

17 Mar 2025 - The Police’s Financial Intelligence Unit have released the latest National Risk Assessment for 2024. https://www.police.govt.nz/sites/default/files/publications/fiu-nra-2024.pdf

17 Mar 2025 - The RBNZ has welcomed the release of the latest National Risk Assessment (NRA) from Police’s Financial Intelligence Unit. The report assesses threat and sectoral vulnerability, exploring their impact on money laundering and terrorism financing risk and proliferation financing in New Zealand. https://www.rbnz.govt.nz/hub/news/2025/03/reserve-bank-supports-the-release-of-the-new-zealand-national-risk-assessment

17 Mar 2025 - The FMA are considering a class exemption to provide relief from certain reporting, audit and assurance obligations under the Financial Markets Conduct Act 2013 and the Financial Markets Conduct Regulations 2014 for registered Managed Investment Schemes that are in wind-up. Consultation closes 12 May 2025. https://www.fma.govt.nz/business/focus-areas/consultation/consultation-proposed-reporting-audit-and-assurance-exemptions-for-schemes-in-wind-up/

Chubb Life NZ appoints new Head of Claims

Chubb Life NZ has announced that Reeta Anthony has been appointed as its new Head of Claims, effective immediately. Anthony will report to Debbie Eyre, Chief Operating Officer, and will be responsible for the strategic delivery of the claims proposition. Anthony has over 25 years of financial services experience and expertise and was most recently Head of Claims at Fidelity Life.

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FSC’s FAP round table breakfast with the FMA

Quality Product Research are sponsors of the Financial Services Council’s (FSC's) FAP round table breakfast with the Financial Markets Authority (FMA) last month. Several of our team were there, including Aneel Ravji, AdviceTech Lead, Kelly Pulham, National Partnerships Lead, and Russell Hutchinson, Research Director.

The FMA covered how the new regime is working, approaches to enforcement and other initiatives. Attendees were taken through the background and given an overview of the Conduct of Financial Institutions (CoFI) regime.  Other topics included observations on remediations, fair conduct programmes and an overview of the CoFI intermediated distribution guide. Russell Hutchinson facilitated a lively Q&A session.

Here's a few snaps from the day. We highly recommend you attend the FSC round tables if you get the chance, they always make for an interesting and engaging start to the day.

Pictured, from the Financial Markets Authority, from left to right: Michael Hewes, Director, Deposit Taking, Insurance and Advice; Anna Jared, Technical Specialist – Deposit Taking, Insurance & Advice; Kyla Bottriell, Senior Adviser, External Relations; and Romil Ghelani, Head of Financial Advice

Russell Hutchinson, Director at Quality Product Research Ltd, facilitates a Q&A session.

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Apex Advice Group and OPM Insurance merge

Apex Advice Group and OPM Insurance have announced their strategic merger. OPM Insurance was founded by Oliver Pereira 17 years ago.

Craig Mulholland, Chief Executive of Apex Advice Group, said

“We are delighted to welcome OPM Insurance into the Apex Advice Group family. This partnership strengthens our position as a leading financial advisory firm and allows us to expand our reach and offerings. We are confident this will benefit our clients and drive continued growth.”

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Deepfake scams on the rise

Research commissioned by MasterCard has found that 29% of New Zealanders and 18% of NZ businesses have been targeted by deepfake scams in the past year. Deepfake scams use generative artificial intelligence (AI) to impersonate individuals, with the aim of stealing their targets’ money or personal information.

Deepfakes scams can utilise video, images and audio and can look increasingly convincing. Confidence levels in the ability to correctly identify deepfakes are low, with only 12% of respondents confident they would be able to detect a deepfake scam. Deepfakes are eroding trust in public figures and digital platforms, with 41% of individuals being more sceptical towards celebrities and influencers; 61% of kiwis being less trusting of social media platforms; 40% of New Zealanders being less trusting of emails and 37% of respondents being less trusting of phone calls compared to the previous year.

Some steps businesses are taking to address these risks include employing identification verification for accessing sensitive information, offering cybersecurity training and conducting training on financial transactions.

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IFINZ publish report on diversity

The Institute for Finance Professionals New Zealand Inc (INFINZ) has published a report on diversity, Insights Research in Support of a Diversity, Equity & Inclusion Action Plan for INFINZ, 2024. In particular, the report focuses on Māori representation and inclusion across the finance sector, and women’s representation in senior roles.

Barriers to Māori representation and inclusion included: lack of representation at senior levels to drive change; a lack of representation at all levels; Māori values not being understood or embraced. Barriers identified for women’s representation in senior roles included: recruitment practices and networking practices not favouring women; an unwelcoming finance sector public image; needing flexible working and strong paid parental leave policies in place; current leaders being resistant to change; career breaks for childcare/caregiving roles.

Stakeholders came up with a range of ideas for how to implement change. For Māori representation and inclusion, ideas included: showcasing Māori role models; connecting with iwi and Māori community networks; inclusive recruitment, including targeting and investing in young people; quotas and targets; embracing te ao Māori; recognising and remunerating for cultural practices; having a Māori network in the finance sector; building a charter or accord, supported by training and resources.

For women’s representation in senior roles, ideas for change included: inclusive recruitment; showing women role models in the sector; having quotas and targets; have coaching, mentoring and sponsorship programmes; offering flexible promotion pathways and roles/support for those returning to the workforce; strong paid parental leave policies; building a charter or accord, supported by training and resources.

Of the ideas for change, INFINZ have narrowed these down to a list of actions areas to consider as part of its future DEI activity. The areas for consideration include: a communications and awareness campaign; te ao Māori training and education; supporting the development of a Māori finance network; a Tūakana Tēina network and a DEI organisational network; scholarships; male allyship programmes; training and development for parents returning to work; advocacy and support. They also consider supporting a charter or accord covering recruitment practices; gender and ethnic pay gap reporting; cultural safety programmes; remuneration for cultural services; having women on recruitment panels and shortlists; paid parental leave top-ups and the ability to be promoted while on leave; paid parental leave targeting men; increasing the availability of high-quality part-time roles; implementing returner programmes and policies.

We’d be interested in hearing your views – what does your organisation currently do well? What initiatives would you like to see implemented?

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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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Fidelity Life announce mortgage cover enhancements

Fidelity Life has enhanced their Monthly mortgage repayment cover and Mortgage Protection Cover. From 20 June, the insurer is lifting the offsets thresholds for these covers from $5,000 to $7,500, providing greater certainty at claim time for customers with high incomes or large mortgages.

In addition, customers can choose to base their cover on 115% of their rent payments.

Chief Commercial Officer Bronwyn Kirwan says

“These enhancements deliver more support and security for customers, whether that’s through keeping more money in their pockets before offsets start to apply, or offering greater support for renters. By providing more options, we aim to help more New Zealanders get the cover that works for them.”

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AIA appoints Chief Product and Strategy Officer

AIA NZ has appointed Alex Kühnast as Chief Product & Strategy Officer. Kühnast  joins AIA from KPMG New Zealand, where we was Principal – Head of Insurance Consulting & Actuarial Services. In his newly created role, Kühnast will look after Product, Pricing, Investments and Strategy.

AIA NZ CEO Nick Stanhope said

"Alex’s appointment is exciting for us. He is a natural fit at AIA NZ with his passion for health and wellbeing, and he has a wealth of international experience, having lived and worked in his home country of South Africa, the Netherlands, United Kingdom and of course now New Zealand.”

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