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A year of change ahead

With summer continuing to put on a dazzling show, welcome to the first CoverNote of 2021. It seems almost surreal that we are approaching the anniversary of our first Covid lockdown. There have been many new terms and lessons for all of us over the past 12 months and, despite a number of community outbreaks, we have enjoyed much more normality than most countries.

After having seen it deployed around the world, the rollout of our vaccination programme is finally underway, which brings with it much hope and expectation for a return to our pre-pandemic lives.

Those involved in providing financial advice will be consumed with ensuring they are making the necessary changes by March 15 2021, when the new Financial Services Legislation Amendment Act (FSLAA) Conduct Regime comes into play. Few, if any, escape its reach, with aspects applying to both retail and wholesale clients.

From the outset, Financial Advice Providers and Financial Advisers need to be very clear about their new obligations and new or altered processes. Evidencing that obligations are being met is a key element to have in place. It is entirely likely that things will need to evolve which makes oversight and review crucial so that improvements or issues are captured with any necessary changes made.

Further legislative reform continues to be a big focus across our industry. The Reserve Bank has instigated an initial consultation on the Insurance Prudential Supervision Act. The elements they are reviewing include solvency, oversight, branches, reinsurance, and supervision of those carrying out business in New Zealand. IBANZ will be making a submission.

The Financial Markets Conduct of Institutions Bill (FMCIB) is currently awaiting its second reading and we watch the progress of this Bill with interest. There is significant and concerning duplication for those that also fall under the FSLAA Conduct Regime which comes into play this month. This is a cause of great concern as we have stressed to MBIE.

While it is critical for intermediaries not subject to FSLAA to be captured under FMCIB there will be a significant imbalance and disadvantage for those subject to both.

Lastly, we expect an exposure draft to be released later this year on the Insurance Contract Law Review. This covers several areas across insurance law including insured’s disclosure requirements and remedies if they are not correctly made as well as the potential for coverage comparisons or summaries.

It is also expected to draw in other long-standing aspects of our sector, including the intermediary as an agent, Insurance Law Reform Acts, and the duty of Utmost Good Faith. IBANZ will be looking to provide a submission on the draft when it is released.

I am currently seeking introductory meetings with the Hon Dr David Clark, Minister of Commerce and Consumer Affairs and the Hon Jan Tinetti, Minister of Internal Affairs.

Despite it seeming to be widely accepted that insurance is not a suitable place for the collection of fire service levies (or tax as many refer to it) there sadly seems little appetite or impetus for moving it to the more obvious alternates. We will, however, continue to work towards this, given the greater fairness doing so would bring.

All the best for the remainder of this quarter and the year ahead.

Stay safe

Melanie Gorham

CEO, IBANZ

CoverNote is the official publication of IBANZ and is distributed FREE on a quarterly basis (March, June, September, December) to members throughout New Zealand and associated companies. Additional copies are available at a cost of $7.50 per copy, or 12 month (4 issue) subscriptions at $30.00, inclusive of postage and packaging. The articles or opinions featured within this magazine are not necessarily the opinions of the publishers or IBANZ, and they do not accept responsibility for the content of articles featured within the publication. No part of this publication may be reproduced without the written permission of the publisher. The publishers do not accept responsibility for loss or damage to unsolicited photographs or manuscripts.

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Vero Liability hails retiring industry leader

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March 2021

Raising a toast to Allan Cameron Vero Liability hails retiring industry leader

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Vero Liability hails retiring industry leader

Insurer Vero Liability has raised a toast to the retiring Allan Cameron, who has stepped down after 15 years at the company and 60 years in the New Zealand insurance sector.

At an industry event at VL’s Auckland office in February, VL managing director Adrian Tulloch thanked long-serving Cameron for his know-how, intellect and indepth knowledge of the insurance industry.

Tulloch remembered his early days in the insurance market and Cameron’s status as a “renowned” broker, known for his professionalism and meticulous attention to detail.

VL tempted Cameron out of retirement in 2006, hiring the industry veteran in a technical services role across the business.

Tulloch said: “It worked out well, probably even better than we both thought it might. While we both anticipated it might have been for a couple of years, it has lasted for more than a decade. He has impressed everyone he has worked with, internally and externally.”

“We all know that liability insurance is complicated, but Allan has demonstrated his expertise time and again, helping to deliver results for clients. No one was left in any doubt that Allan was on the top of his game, and we have a lot of respect for his technical ability. We will miss him a hell of a lot, even though we have a lot of clever people here.” insurance to them and given them a solid induction. He has always been there for his colleagues and has been a Sergeant at Arms for us.”

“He’s someone that we are not going to be able to replace, so thanks Allan,” Tulloch said.

Originally from Glasgow, Scotland, Cameron has held a wide number of roles across the New Zealand insurance industry.

He arrived in New Zealand in 1965, working for companies including Lloyd’s of London broker Edward Lumley & Sons, Norwich Union, and Industrial and Commercial Insurance Brokers Limited, where he spent 25 years.

Cameron’s expertise later proved to be a valuable acquisition for VL, where he worked on technical services issues, including policy wording and the design of new products.

Reflecting on six decades in the insurance market, Cameron said the broking market had changed significantly during his career.

“I guess the main change in the market has been consolidation. As the number of brokers grew, the number of underwriting entities shrank. While there were more than 25-30 conventional fire and general underwriters in 1965, there are probably only six or seven now.”

“The same thing is happening in the market with brokers now,” he added. “At the same time, consolidation and mergers create space at the bottom of the industry for smaller independent firms to fill the gap,” he said.

Cameron said he was proud to have served the insurance sector for so long.

“I know that we provide a product that supports businesses. I’ve seen so many people, small businesses in particular, rescued by a well-structured insurance programme. I’m happy and proud to have played a part in this industry for so long.”

Cameron added: “My 15 years at VL have probably been the most fruitful and productive of my career in terms of the knowledge I gained. I gained a lifetime of knowledge in 15 years.

“The Vero Liability team are the most talented bunch of people I have come across in terms of brainpower, knowledge, and general know-how. Adrian Tulloch has retained a traditional self-constrained, self-governing business, without the corporate bureaucracy that tends to affect major insurance companies. It was refreshing to be part of that environment.”