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

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

Legal and regulatory update for the life and health insurance sector

6 May 2024 - The Justice Select Committee are currently accepting submissions on the Privacy Amendment Bill with submissions closing on 14 June. https://www.parliament.nz/en/pb/sc/make-a-submission/document/54SCJUST_SCF_56E3FBE7-1F3D-464E-B54D-08DBAE8917AE/privacy-amendment-bill

9 May 2024 - The Australian Prudential Regulation Authority (APRA) has issued a letter to all private health insurers (PHIs) sharing the observations from its review of a number of PHI Internal Capital Adequacy Assessment Plan (ICAAP) Summary Statements as well as feedback on the initial implementation of the new capital reporting standards.    https://www.apra.gov.au/news-and-publications/apra%E2%80%99s-publishes-letter-to-support-implementation-of-new-phi-capital

13 May 2024 - The office of the Privacy Commissioner release a biennial privacy survey of New Zealanders. https://privacy.org.nz/publications/statements-media-releases/privacy-week-2024-new-survey-reveals-new-zealanders-privacy-concerns/

Next week is Privacy Week

Privacy Week 2024 runs from May 13 – 17. This year, the office of the Privacy Commissioner have chosen the theme ‘busting privacy myths’. There are a range of online events you can attend, and they will all be recorded and added to their YouTube channel.

2024 Privacy Week Programme

Monday 13 May

11:00am - Myth: Māori data sovereignty is too hard – introductory

1.00pm - A hacker's view of data breaches – introductory

Tuesday 14 May

8.30am - In-person IAPP Knowledge Net event – Wellington

10.30am - Busting myths about privacy and cyber security – introductory

12.00pm - Biometrics and you – intermediate

3:30pm - Sharing personal information: Why aren’t we sharing when we have authority to do so? – Intermediate.

Wednesday 15 May

9.30am - If I'm not doing anything wrong, what do I have to hide? – Introductory

10.45am - Safeguarding children and young people's privacy in New Zealand – Introductory

12pm - Resolving Privacy Complaints: Internal Resolution and Working with OPC – Introductory

1pm - Ask the experts: what you need to know about notifying individuals of a privacy breach – Introductory

2pm - What’s missing from the conversation on AI? – Intermediate

Thursday 16 May

9.15am - Privacy for Charities and Not-for-Profits: tips and tricks - introductory

10.30am - All privacy breaches need to be reported to the Privacy Commissioner? – intermediate

11.45am - Shielding Your Digital Self: Understanding Online Privacy Rights under the Harmful Digital Communications Act 2015 – introductory

1.15pm - Managing Privacy in the Data & Generative AI Era – Intermediate

2.30pm - Young people don't care about Privacy - Debunking the myth – Introductory

3.45pm - Can we learn anything from over the ditch? The role of advocates in the privacy ecosystem - introductory

Friday 17 May

9.00am - Sharenting, Children and Privacy – The fine line between 'cute' and 'concerning'

10.30am - Privacy is More than Compliance: Transforming Privacy into a Strategic Business Advantage - Advanced

12.00pm - Data Privacy: Protecting Children in the Digital Age – Introductory

2.00pm - My DNA will only be used in this way - busting privacy myths about DNA - Introductory

There is a range of collateral available for you to put on your website or social media or pop up around the office here and a quiz you can take with your team available here.

More daily news:

nib offers respondents to Workplace Wellbeing Survey a chance to win

Contracts of Insurance Bill which seeks to shift onus of disclosure duties to insurers has passed its first reading at Parliament

ICNZ has welcomed the first reading of the Contracts of Insurance Bill

The government calls for public submissions on the Contracts of Insurance Bill

TSB is looking for a Senior Data Scientist

Legal and regulatory update for the life and health insurance sector

30 Apr 2024 - The office of the Privacy Commissioner has announced the 2024 Privacy Week programme. https://privacy.org.nz/news/forums-and-seminars/privacy-week/privacy-week-2024/

1 May 2024 - The Reserve Bank of New Zealand says that New Zealand’s financial system remains strong as it continues to adjust to the higher interest rate environment. https://www.rbnz.govt.nz/hub/news/2024/05/financial-system-robust-to-high-interest-rate-environment

2 May 2024 - The Contracts of Insurance Bill was read a first time and referred to the Finance and Expenditure Committee, to be reported by 3 September 2024. https://bills.parliament.nz/v/6/019DAD64-3F9E-46B8-5CD9-08DC67F794E8?Tab=history

2 May 2024 - The Privacy Amendment Bill was read a first time and referred to the Justice Committee. https://bills.parliament.nz/v/6/56e3fbe7-1f3d-464e-b54d-08dbae8917ae?Tab=history

Gallagher Bassett’s 2024 Claims Insights

Gallagher Bassett surveyed 150 businesses across North America, United Kingdom, Australia and New Zealand to find out the biggest challenges and considerations for those in the insurance industry.

Gallagher Bassett say last year key business challenges were premium affordability (29%), market competition (22%) and keeping up with technology (20%).

Gallagher Bassett suggest that to gain advantages, carriers need to implement strategies that leverage external expertise, data-driven insights and generative AI.

Some other key findings include:

·         84% of global respondents emphasised offering competitive salaries to retain employees.

·         75% predict the biggest challenge in the compliance and regulation area will be around data privacy and security.

·         86% use climate data and analytics in risk assessments and underwriting processes.

·         67% of insurance carriers utilised generative AI chatbots in customer service.

·         95% of global carriers anticipate improved speeds and operational efficiency with AI integration.

More daily news:

New surgical building in Auckland has opening delayed as it does not have required staff

AIA introduce new cover for prophylactic surgery following cancer

AIA have enhanced their on-sale health insurance products as well as eligible closed products to cover prophylactic or preventative surgery following an acceptable breast or ovarian cancer claim, subject to certain criteria.

Previously AIA’s health insurance products specifically excluded preventative treatment including those related to cancer. The changes came about after a need was identified through customer feedback. Details of the changes are available here.

Insurers have been getting increased requests for preventative treatment to be available. One example of the media coverage is available at One News here.

Comments like this one sum up the media view: “If you had a very high cancer risk, but there was surgery available to cut that risk by up to 90% - that would be amazing, a no-brainer, right?” – well, it depends on what you mean by a ‘very high rate of cancer’. That risk must outweigh the risks associated with a preventative surgery. It will not be the same for all clients – and may vary depending on each person’s circumstances.

These trade-offs make it a much more difficult decision to make than funding cancer treatment itself. Insurers are conservative and usually wait many years to assess data to decide whether to cover different treatment types. That’s bad news for individual customers who have an expensive and difficult choice to make, but it helps protect the interests of hundreds of thousands of other customers, who need affordable cover.

More daily news:

Michael Hewes spoke about what an FMA monitoring visit is about

The FSC CEO Farewell + Financial Resilience Index Research Launch will be on 1 May

Financial Advice NZ webinar 'Te Ara Ahunga Ora/Retirement Commission' 27 March

Peter Mensah appointed to Regional Manager – North Island at Chubb Life

Chubb's new advertising campaign features Phil Thompson

The Office of the Privacy Commissioner is holding a Ian Axford Fellowship webinar with Rachel Levinson-Waldman on 25 March

Southern Cross announce winners of the Wayfinder Awards

Select Committee publishes final report of inquiry into the nature, impact and risks of cryptocurrencies

The Retirement Commission asks for feedback on a shared measurement tool for financial wellbeing

Legal and regulatory update for the life and health insurance sector

5 Mar 2024 - The Reserve Bank of New Zealand has published a Bulletin article discussing the use of credit risk weights for climate-related purposes. https://www.rbnz.govt.nz/hub/news/2024/03/the-use-of-credit-risk-weights-for-climate-related-purposes

5 Mar 2024 - The FMA publish Samantha Barrass' speech from the Financial Advice New Zealand Thrive Conference. https://www.fma.govt.nz/library/speeches-and-presentations/speech-by-samantha-barrass-at-financial-advice-new-zealand-thrive-conference/

5 Mar 2024 - The Business Payment Practices Act Repeal Bill was read a first time and read a second time under urgency. https://bills.parliament.nz/v/6/3da72845-7284-439e-2ead-08dc3c923d2a?Tab=history

6 Mar 2024 - The Reserve Bank of New Zealand are part-way through a review of access eligibility criteria to use the Exchange Settlement Account System (ESAS). They have updated the consultation page of their website and published the submissions they received. https://www.rbnz.govt.nz/have-your-say/2023/esas

7 Mar 2024 - The Financial Markets Authority has filed civil proceedings against Tower Limited (Tower) for failing to apply multi policy discounts to eligible customers’ premiums, resulting in approximately $9.5 million in overcharges.  https://www.fma.govt.nz/news/all-releases/media-releases/fma-files-proceedings-against-tower-limited/

7 Mar 2024 - The Privacy Commissioner has called for greater penalties for data breaches. https://privacy.org.nz/publications/statements-media-releases/greater-penalties-needed-privacy-commissioner-speaks-to-national-cyber-security-summit/

8 Mar 2024 - The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have released final rules and further guidance to support the financial services industry in implementing the Financial Accountability Regime (FAR).
The FAR, which replaces the Banking Executive Accountability Regime (BEAR), imposes a stronger responsibility and accountability framework for APRA-regulated entities in the banking, insurance and superannuation industries and their directors as well as their most senior executives. In doing so, the FAR aims to improve the risk and governance cultures of those financial institutions.
This release includes:

• the Regulator rules, which prescribe information for inclusion in the FAR register of accountable persons;

• the Transitional rules, which prescribe information to be provided by authorised deposit-taking institutions (ADIs) in relation to their existing accountable persons under the BEAR at the transition point to the FAR;

• descriptions of ADI key functions to assist banking entities in the allocation of key functions; and

• reporting form instructions to assist banking entities in providing the required information to APRA and ASIC.

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

Legal and regulatory update for the life and health insurance sector

27 Feb 2024 - The Australian Prudential Regulation Authority (APRA) has released its Quarterly Superannuation Performance publication and the Quarterly MySuper Statistics report for the December 2023 quarter.  https://www.apra.gov.au/news-and-publications/apra-releases-superannuation-statistics-for-december-2023

27 Feb 2024 - The Pae Ora (Disestablishment of Māori Health Authority) Amendment Bill was introduced to Parliament under urgency, read a first time, read a second time,went to Committee of Whole House and has received Royal Assent. https://bills.parliament.nz/v/6/79c10303-5472-4eb3-9496-08dc3736cfbc?Tab=history

28 Feb 2024 - The Australian Prudential Regulation Authority (APRA) has released its quarterly private health insurance (PHI) publication for the December 2023 quarter. https://www.apra.gov.au/news-and-publications/apra-releases-quarterly-private-health-insurance-statistics-for-december-2023

28 Feb 2024 - The Monetary Policy Committee agreed to hold the Official Cash Rate (OCR) at 5.50%. https://www.rbnz.govt.nz/hub/news/2024/monetary-policy-remains-restrictive

29 Feb 2024 - The Office of the Privacy Commissioner has released new privacy impact assessment guidance and downloadable templates. https://privacy.org.nz/new-on-the-website

29 Feb 2024 - The Office of the Privacy commissioner has released Privacy News February 2024. https://mailchi.mp/ea0b4c7571b6/privacy-news-biometrics-code-opc-guidance-three-vacancies-ai-governance-training-12758105

29 Feb 2024 - The Office of the Privacy Commissioner is hosting a webinar with Ian Axford Fellow on 6 March. https://us06web.zoom.us/webinar/register/WN_RvnJJixhTOSoT0oVwPth_g#/registration

29 Feb 2024 - This year’s Privacy Week will be held over 13-17 May. The Office of the Privacy Commissioner is seeking people to sign up to host a myth busting webinar as part of Privacy Week 2024. https://www.surveymonkey.com/r/CJPJ7BX

Legal and regulatory update for the life and health insurance sector

21 Nov 2023 - The Australian Prudential Regulation Authority (APRA) has released its Quarterly Superannuation Performance publication and the Quarterly MySuper Statistics report for the September 2023 quarter.  https://www.apra.gov.au/news-and-publications/apra-releases-superannuation-statistics-for-september-2023

21 Nov 2023 - The Financial Services Council has today released its initial report outlining the challenge to update the permitted operating model for defined benefit (DB) workplace savings schemes by enabling them to consolidate, thereby benefiting both members and employer sponsors through improved cost-effectiveness and simpler administration. https://blog.fsc.org.nz/media-release-21-november-2023

22 Nov 2023 - The Australian Prudential Regulation Authority has released its quarterly private health insurance (PHI) publication for the September 2023 quarter. https://www.apra.gov.au/news-and-publications/apra-releases-quarterly-private-health-insurance-statistics-for-september-5

22 Nov 2023 - The Australian Prudential Regulation Authority (APRA) has released a response to consultation on its proposed amendments to three private health insurance (PHI) reporting standards, following amendments to PHI legislation. https://www.apra.gov.au/news-and-publications/apra-responds-to-consultation-on-amendments-to-private-health-insurance

23 Nov 2023 - The Privacy Commissioner has announced that his Office will be consulting on new rules specifically for biometrics. Biometrics are increasingly collected by facial recognition technology (FRT), retinal scans, and voice recognition. The exposure draft will be released early in 2024 and will be available for everyone to comment on. https://privacy.org.nz/publications/statements-media-releases/privacy-commissioner-to-consult-on-new-rules-for-biometrics/

24 Nov 2023 - FMA released its Audit Quality Monitoring Report for 2022/23 https://www.fma.govt.nz/library/reports-and-papers/audit-quality-review-report/

27 Nov 2023 - Medical Assurance Society (MAS) are to pay a $2.1 million penalty for making false and misleading representations to customers, following proceedings brought by the FMA. In September 2023, MAS admitted it breached section 22, one of the Fair Dealing provisions of the Financial Markets Conduct Act 2013 (FMCA), by failing to correctly apply multi-policy discounts and no claims bonus discounts to some customers who were entitled to them, failing to correctly apply inflation adjustments on some customer policies, and miscalculating benefit payments. https://www.fma.govt.nz/news/all-releases/media-releases/medical-assurance-society-to-pay-2-1-million-penalty/

27 Nov 2023 - The Australian Prudential Regulation Authority (APRA) has released for consultation a new cross-industry standard to centralise APRA's existing standards on definitions for authorised deposit-taking institutions and general, life and private health insurers. https://www.apra.gov.au/news-and-publications/apra-consults-on-new-cross-industry-standard-to-centralise-existing-standards