CoverNote June 2022 issue

June 2022

Insurance Contracts Bill: what you should know CoFi Bill draws closer: the good and bad news

www.ibanz.co.nz

Welcome

Welcome to the June 2022 edition salaries for roles listed with a leading New Zealand employment website have risen by a minimum of 26% in manufacturing, transport, logistics, retail, accounting healthcare, trades and hospitality when compared to the same period 12 months prior. Notably, contract roles were excluded from the data.

Raising productivity is viewed by many as the primary solution to the current inflation cycle which sees an increasing number of kiwis feeling the pinch. Automation and software solutions are being advertised, investigated, or brought online in the hopes of reducing cost pressures or boosting outputs. Whatever the solution, we can't keep paying more for the same.

Having lived and breathed insurance for most of my working life, there is an osmosis-like quality to the knowledge gained from within the industry. That knowledge is very much shaped by the roles and experiences each of us is exposed to. Regardless of how straightforward many aspects of insurance have become to me, there is no disputing that many on the outside find it mystifying.

O

ur latest edition arrives at an unsettled time.

Having recently met with several IBANZ members, impacts are being felt country wide from rising costs, a slowing economy, ongoing supply chain problems and intensifying labour constraints. Disappointingly, these seem to be expected to remain for some time. The recent news that the border is reopening sooner than originally signalled provided some respite but is by no stretch a solution.

The shortage of labour and associated effects is of significant concern across industries and something that seems to feature daily in the media. Net migration is down as kiwis choose to move overseas in search of the higher incomes and lower outgoings reported in Australia and beyond. Key areas such as housing/rent, commuter travel and groceries contribute to a cost of living comparison which sees New Zealand falling short.

For the period of November 2021 to February 2022, average annual full time and annualised hourly

Varied backgrounds, knowledge and needs are key reasons why, when reforming or introducing legislation, the government undertakes consultation within the sector directly impacted as well as with other stakeholders including advocacy groups, business, and customers.

Providing an opportunity to review draft legislation and submit meaningfully is a crucial step in achieving legislation which is fit for purpose. Listening to feedback and different points of view is equally important as seems to be playing out with CCCFA. The Government continues to consult on a dizzying amount of legislation that impacts the insurance industry with as much legislation under consultation from April to June as is typical for a year.

Time is not an inexhaustible resource. There comes a point when the volume and pace of consultation creates foreseeable issues. We are there now, and I have raised my objections and concerns on this with the Ministers responsible, but sadly, they seem to have gone unheard.

Allowing sufficient time to bring together a range of people to digest, discuss and contribute meaningfully is crucial. It helps deliver well thought out legislation and regulation while minimising the opportunity for foreseeable issues. That is what New Zealanders deserve, and I look forward to the day we return to this approach.

Melanie Gorham CEO, IBANZ

Cover 4. COVER STORY Insurance Contracts Bill: what you should know

Features 3. Claims hit Tower profits

7. NZ catastrophe losses way above long-term average: Aon

8. IAG launches Weather Tracker

10. CoFi Bill draws closer: the good and bad news

14. How businesses can avoid common workplace injuries

16. Support for Levin community hit by tornado

20. FMA publishes record-keeping tips

24. Is safety technology having the desired impact?

26. RAM Raids on the rise

28. Opinion: Natural Hazards Insurance Bill looms

32. $1bn NZ auto repair industry under treat from insurer model

33. Rothbury makes senior hires

41. New Auckland HQ for AIG New Zealand WANT YOUR VERY OWN COPY OF

Regulars 1. Welcome to CoverNote

43. IBANZ Calendar of Events

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44. IBANZ Contacts

Humans of NZI

June 2022

38. Ask an Expert

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See page 44 for details on how you can have your very own copy delivered directly to your door...

CoFi bill draws clo ser: and

the good

bad new s

HOT OFF THE PRESS!

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 issues) 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.

IBANZ enquiries should be made to: Melanie Gorham, Chief Executive, IBANZ. Email: mel@ibanz.co.nz IBANZ National Office located at: Unit 4D, 2B William Pickering Drive, Rosedale, Auckland 0632 PO Box 302504, North Harbour, Auckland 0751 Telephone 09-306-1732.

Website: www.ibanz.co.nz

Insuranc e Contrac ts what yo Bill: u should know

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Telephone 09 477 4700, Fax 09 477 4799 Advertising Deadlines: Bookings 10th of the month prior to publication, material 15th of the month prior to publication.

Feature

Claims hit Tower profits A

higher volume of claims hit profits at insurance group Tower.

The insurance company saw profits for the six months to March fall to $2.98 million, down from $11.1 million in the same period the year before.

Excluding large events, underlying profit reached $18.2m, up from $17.1m.

Tower increased gross written premiums over the half year to $216.1 million, up from $194.6 million in the prior period.

Tower chief executive Blair Turnbull said large event costs compared to the year before.

Turnbull described the event costs as “substantial”.

The large-claim events included $7.6m for the eruption of Tonga’s volcano and tsunami, $6.7m for March’s North Island rainstorms and $3.6m for cyclone Dovi, which hit NZ in February.

On Newstalk ZB, Turnbull said

climate change was “increasingly affecting our communities”.

“We are responding,” he added.

“By expanding our risk-based pricing policies and focusing on a highquality reinsurance programme, we ensure Tower remains in the strongest possible position to continue protecting both our customers' and shareholders' interests."

Tower joined a host of other underwriters last year by introducing risk-based pricing, as the threat of large flood events grows in New Zealand.

According to Lloyd’s of London, New Zealand is the second most vulnerable country in the world to natural disasters, behind only Bangladesh.

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3

Cover Story

Insurance Contracts Bill: what you should know Changes to insurance contract law likely to mean more work for brokers, writes Angela Cuming

I

t represents the most wide-ranging changes ever proposed for New Zealand’s insurance contract law.

Now, the much-anticipated reform is another step closer with the release of the draft Insurance Contracts Bill.

In February, the Ministry of Business, Innovation and Employment (MBIE) released the Bill, following a public consultation on how to reform insurance contract law in late 2019.

The Bill aims to address shortcomings in insurance contract regulation that was identified in MBIE’s 2019 consultation and foreshadows the most fundamental revisions to insurance law in New Zealand since the reforms in the late 1970s.

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The Bill proposes to: Make fundamental changes to the duty of disclosure.

•

Open up insurance contracts to the unfair contract terms (UCT) regime in the Fair Trading Act 1986.

•

Introduce new obligations upon insurers in relation to the presentation of consumer insurance contracts.

•

Modernise the ability of third parties to make claims upon the liability insurance of persons they are suing, including providing broad powers to request information.

•

Consolidate New Zealand’s

disparate insurance legislative regime into (nearly) a single statute.

Submissions on the draft Bill closed in May and it is expected the Government will move to have the legislation passed before the next election in 2023.

David Ireland, a partner at Dentons Kensington Swan, says the Bill is well overdue.

“To say the Insurance Contracts Bill has been a long time coming is a bit of an understatement,” he says.

“Some of the legislation now up for repeal dates back to 1908, with a series of patchwork law reforms and targeted pieces of legislation leaving

us with a jumble of statutory and common law rules founded in history that are no longer fit for purpose in a modern world.”

There are a few cornerstone issues the draft Bill aims to address, says Ireland, including the often criticised right for an insurer to avoid a contract of insurance for non-disclosure by the insured.

“The Bill also aims to address concerns with the extent to which insurance contracts are exempt from being able to be declared “unfair” under the Fair Trading Act, and no prescribed requirements regarding the way insurance policies are drafted and disclosed, meaning

consumers have no regulatory protections to help them understand and compare policies.”

The Bill itself has fairly wide support within the insurance industry, albeit with reservations about some of the details and concerns over the risk of unintended consequences, says Ireland.

“With the draft law’s focus on consumer protection, in the current climate, it would be a brave insurer who speaks out too loudly against the reform’s objectives, and it is really just a case of getting on with it. The industry is well aware that reform to the law is long overdue, and there has been some frustration with the

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Cover Story

delays, impacting on the rollouts of a few policy documentation update projects (with the regulators already pushing the for the ‘plain-Englishing’ of policies ahead of any legislative mandate).

significant part in the outcome. But it seems likely that insurance is going to become more expensive and potentially with more obstacles in the way of taking out cover for all but the simplest of insurance needs.”

“If nothing else, the draft Bill provides greater certainty as to what some of the new rules are likely to look like. Of course, the bulk of the policy decisions involved have been made so the focus of the consultation is on the way those policy decisions have translated into draft law.”

What about the brokers?

One way or another, insurance brokers will feel the effects with the Bill is signed into law, says Ireland.

“I think the law change will inevitably result in an additional layer of work and responsibility being

Kāhui Inihua o Aotearoa - says it supports the move to update and consolidate insurance contract law, but believes there are a few areas where they think further work is required and what it is proposed “doesn’t seem quite right”.

“Examples of this include codification of the duty of utmost good faith and form and publication requirements in regulations, which we say both are unnecessary and problematic,” says chief executive Tim Grafton.

“The biggie” - duty of disclosure Of all the changes proposed by the Bill, the most significant involves the proposed change to the law relating to the policyholder’s duty of disclosure.

“This is the biggie,” says Ireland.

“This has been well-signalled as a key problem area for many years, and we are looking at a major shake-up in the way insurers need to go about getting clarity as to the risks they are underwriting. The changes put the onus on the insurers to ask the right questions.

“To be fair, insurers have already come a long way in ensuring actions taken in response to non-disclosure are generally proportionate, with consumers already in a considerably better position than they were in the last century. Practices in that regard have varied, however, based on general good conduct and fair treatment principles as opposed to black letter law.”

A concern is that the disclosure playing field may have tilted too far in the other direction, with insurers taking on an undue burden of undisclosed risk, says Ireland.

“A consequence of this is that we may see longer and more invasive application forms under the new law, with the possibility of insurers needing to price in undisclosed risks that they might previously have been comfortable excluding, or offering more restrictive covers. This may not necessarily produce a good outcome for policyholders who had nothing to disclose in the first place.

“It is going to take a while for things to settle down, and the detail of the rules, when passed will play a 6

June 2022

As with many of the reforms we have seen hitting the financial services industry of late, the price of increased consumer protectionism is that everyone involved on the supply and distribution side will probably have to work harder for their money.

David Ireland, Partner, Dentons Kensington Swan placed on brokers,” he says.

“On the upside, they are likely to have more consistent and easy to read policy documentation to deal with, and greater ease of comparing policies from one insurer to another.

If the law works as intended, they should also have fewer instances of needing to deal with policyholders disappointed with claims being declined for non-disclosure.”

But the flip side is that brokers can expect to see insurers placing greater onus on them to extract all the required information from policyholders, he adds.

“As with many of the reforms we have seen hitting the financial services industry of late, the price of increased consumer protectionism is that everyone involved on the supply and distribution side will probably have to work harder for their money.

This inevitably impacts on the cost of supply: cheaper premiums is not an expected outcome of these reforms,” Ireland adds.

The Insurance Council (ICNZ) – Te

Overall, however, the changes would mean an “updated and modernised regime”, says Grafton.

“There will be a lot of detail to work through to implement these changes, and this includes changes to insurers and their distribution partners in terms of systems and processes, changes to insurance products and their distribution arrangements.”

Because of this, it is important that sufficient time is allowed for implementation, with a reasonable date being set for when changes are to come into effect. Two years minimum seems reasonable working backwards once all the changes (including under both the Bill and regulations) are known, he says.

“It will also be important that the implementation of this Bill, regulations under it and other reforms the industry is confronted with over the next few years, is co-ordinated so that insurers and their partners can do things in a coordinated and integrated way once, rather than revisiting things multiple times.”

Feature

NZ catastrophe losses way above long-term average: Aon A

on’s latest Weather, Climate and Catastrophe Report revealed 10 catastrophe events in New Zealand last year caused losses of $322.5 million.

The figure was a significant increase on the long term average of roughly $70 million. The catastrophe figures do not include earthquake events.

The 10 year average for cat losses is $180 million.

According to the report, last year was the heaviest loss year for weather perils since 1968. Five out of the top six insured loss years since 1968 have occurred in the last five years, with much of the losses caused by flooding.

The West Coast floods were the most significant cat event last year.

The report said that 2021 was New Zealand’s costliest

insured loss year for weather perils since 1968. Five out of the top six insured loss years since 1968 have occurred in the last five years, with a large majority of losses coming from storms and related flooding.

The most significant event of 2021 was July’s West Coast floods, while heavy rainfall in the upper south island from July 16 to 18 also racked up losses.

Aon said: “As with Australia, local climate projections highlight an increased intensity of extreme rainfall in future decades, with significant regional variability.

“Translating these rainfall projections into flooding impacts remains a highly uncertain exercise. Natural variability in the climate system is expected to control future insured losses from weather events over the next decade.”

www.covernote.co.nz

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Feature

IAG launches Weather Tracker I

AG has launched an online tool to provide weatherrelated claims data to help customers prepare for severe events.

The owner of AMI, NZI, and State Insurance has launched Wild Weather Tracker, a new digital tool to help New Zealanders protect themselves from floods and other natural catastrophes.

Amanda Whiting, chief executive of IAG New Zealand, said New Zealanders were at risk from “more frequent” weather events.

“We expect that these events will only increase as our climate warms,” she said.

“In 2021, the number of storms, floods and other instances of wild weather we recorded was 175% higher than what we recorded ten years ago, in 2012. If we look at the last five years, from 2017-2021, we recorded twice as many instances of wild weather than the previous five years, from 2012-2016.”

Wild Weather Tracker will enable people to monitor and analyse claims data in different regions. It comes

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June 2022

after IAG’s NZ general insurance companies noted a 32% increase in claims over the past six months.

Whiting said insurance “was one component of this solution” in helping New Zealanders become more resilient to severe weather.

“It is not the full answer,” she added. “The most important thing we can do is to ensure people are not in harm’s way. Avoiding the impact on lives and people’s wellbeing must be the priority.

“This requires greater investment in infrastructure and other solutions that either protect people or move them out of harm’s way. We are working closely with the public sector to help achieve this.”

“We hope that by regularly publishing the Tracker, people will clearly see the impact climate change is having on our communities and be able to better prepare.”

According to Wild Weather Tracker data, the proportion of claims caused by severe weather relative to total house claims fluctuated between 3% and 23%

PANTONE 2727C

over the last decade.

In 2021, severe weather made up 16% of all house claims, approximately 40% above the average. This high share of claims has not been experienced since 2016-2017.

Canterbury, Auckland, and Waikato were the hardest hit over the past six months, according to the Tracker.

In addition to the Tracker, IAG has also launched an online Disaster Claims Hub to help customers before and after storms.

IAG’s executive general manager for claims, Wayne Tippet, added: “Our natural perils team has been studying the impacts of the changing climate for nearly 20 years and is clearly seeing storms becoming more frequent and more severe. We also work closely with our customers when these events happen, and we see first-hand the enormous impacts of wild weather throughout New Zealand.”

Feature

CoFi Bill draws closer: the good and bad news

The Financial Markets (Conduct of Institutions) Amendment Bill passed its second reading, with hopes brokers avoid a worst-case scenario from the new law.

Daniel Dunkley reports.

Second reading passed The Financial Markets (Conduct of Institutions) Amendment Bill passed its second reading in parliament on May 12 and will proceed to the Committee of the Whole House.

The Bill, criticised by many participants in the financial services sector, and political parties including National and ACT, will progress through the legislative process as it looks set to become law.

However, a Supplementary Order Paper many hoped would resolve key issues has not yet been published.

The SOP is circulating in a “targeted consultation” and is expected to be introduced ahead of the Bill’s third reading.

CoFI has been criticised across the

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June 2022

financial services industry. The first reading of the Bill triggered fears that the new law would capture brokers, and force intermediaries to be part of financial institutions’ conduct regimes.

Insurance brokers had expressed fears that they would be fully captured by the Bill and regulated twice — once by CoFi and also by the Financial Services Legislation Amendment Act of 2019.

However, recent noises from Cabinet suggest the law will not capture brokers directly at the legislative level. Brokers are not expected to be captured by insurers’ conduct regimes. Rather, insurers are likely to be responsible for ensuring brokers and distributors treat customers fairly.

As the broking market awaits the SOP and further clarity, the Labour-led government is keen to press ahead with the legislation and impose the new law before next year’s general election. The law could be passed by the middle of this year.

In May, MPs including Ingrid Leary spoke in support of CoFi and said the Bill would address the balance between consumers and financial institutions.

The Opposition hit out at the Bill in its current form, however, and warned of unintended consequences from the code of conduct regime.

CoFi progressed by 77 votes to 42 in parliament, with support from the Greens and Te Pati Maori. ACT and National voted against the Bill.

Cabinet Paper

services to consumers”.

In March, Commerce Minister David Clark published a cabinet paper on the incoming legislation. In it, the minister confirmed that the Bill would ban all volume-based sales incentives on financial products for so-called ‘frontline’ operatives.

“This means financial institutions will have responsibilities under the Bill to oversee these parties (e.g. financial advice providers such as insurance or mortgage brokers, retailers selling add-on insurance or credit) but not parties involved in broader preparatory, administrative and claims fulfilment services (e.g. lawyers, plain English writers, panel beaters in relation to motor vehicle insurance),” Clark said.

The regulation will “expressly prohibit financial institutions and intermediaries from offering sales incentives based on volume or value targets to their frontline employees, agents and intermediaries”.

The cabinet paper promised CoFI amendments would be made through the Supplementary Order Paper to limit the definition of intermediary to those “engaged in selling or distributing products or

What happens next All eyes are on the SOP, which will reveal the full extent to which brokers are captured under the legislation.

The cabinet paper and recent roadshow updates from the Financial Markets Authority suggest brokers

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Feature

will not be part of insurer/product provider conduct regimes.

David Ireland, a partner at law firm Dentons Kensington Swan believes the long-awaited SOP will provide welcome clarification for brokers.

“Cabinet’s position has been that we will see the SOP narrow the scope of who will count as an intermediary, being limited to those involved in sales and distribution, as opposed to the much broader class that had originally been envisaged.

“And then the SOP is also likely to limit the financial institutions’

institutions will have to satisfy themselves that the broking firm has the appropriate processes in place.

At the simplest level, the insurer or product provider will need to know if the broker is treating the customer fairly.”

He says the CoFi Bill following the SOP should be “more right-sized than it was when originally proposed”.

“One of the big pluses for broking firms is that their need to comply with a dozen different conduct programmes is now gone. You won't need to follow conduct rules for each

up with will be far more workable than what was envisaged. The state of alarm at the first reading of the Bill is now diminished.”

Despite this, he acknowledges that brokers and other intermediaries will have “a significant extra layer of responsibility placed on them as part of the conduct and culture journey” as financial institutions fall under the new law.

“Financial institutions will want brokers to be pulling in the same direction in terms of treating customers fairly, so there will be more processes to follow.”

The IBANZ view

We are supportive of raising the standard of professionalism across the industry as well as the forums that the FMA is putting in place this year to help provide clarity.

IBANZ Mel Gorham

obligations in relation to those intermediaries through monitoring,” Ireland adds.

There is an expectation that brokers will not be part of an insurer or product providers’ code of conduct regime, he said.

“That’s quite significant,” Ireland adds. “A lot of the pushback at the earlier stages of the Bill was over how much financial institutions would need to dive into the weeds with intermediaries and how products were being distributed.”

Ireland says regulators are keen to pursue a “common sense” approach.

“The Financial Markets Authority gave a briefing session and said they don’t want a financial institution to be auditing individual [intermediary] files, but rather looking at the overall governance process of the distributor.”

“We expect that financial 12

June 2022

different institution. Rather, all of them will be monitoring your expertise as a broker and that you’re observing the principles at a higher level.

Different instituions will take different approaches.”

Ireland called on the broking sector to engage with the FMA as its guidance on the new law unfolds, and said the level of engagement from MBIE and the financial watchdog had been encouraging so far.

Overall, Ireland is confident that insurance brokers and other intermediaries in the financial services sector have avoided a worstcase scenario, compared to the first drafts of the CoFi Bill.

“They [brokers] have very much dodged a bullet,” Ireland adds. “Since the Bill was first introduced, there have been some fairly material changes, and what has been proposed and what we hopefully end

IBANZ chief executive Mel Gorham says the organisation “continues to be fully engaged on the CoFi Bill and SOP”, “as we endeavour to avoid the foreseeable issues we have constantly warned about throughout the consultation, being the reduction in choice, competition and the availability of independent financial advice for consumers”.

She adds: “We are supportive of raising the standard of professionalism across the industry as well as the forums that the FMA is putting in place this year to help provide clarity. We are pleased that the FMA has acknowledged the issues we have raised as well as their role in providing assistance and guidance on what fair treatment looks like whilst not overburdening the sector and bringing about unintended consequences.”

At this stage, Gorham says IBANZ “remains firmly of the view that a distinction needs to be made under CoFi in respect of treatment of intermediaries that are licenced under FSLAA and subject to significant conduct obligations under that legislation, and those that are not”.

She adds: “The latter require firm oversight by the Financial Institutions they are selling products for. We also remain concerned over a potential divergence of interests between an intermediary licenced under FSLAA which is required to give advice on an individual basis whilst avoiding and appropriately managing conflicts of interest and a financial institution which is not.”

Feature

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Feature

How businesses can avoid common workplace injuries

D

id you know that over 90%* of the injuries we see from our clients are muscular strains and sprains?

Regardless of whether the role involves highly physical movements that involve lifting and twisting, or whether it is more sedentary where an employee is at their desk for long hours of the day, we are all susceptible to these particular types of injuries that can be avoided.

Injuries such as these can really impact staffing numbers, productivity and of course, the bottom line through employees injuring themselves, resulting in their taking leave. The positive news is that businesses can help prevent many of these injuries with some preparation, education and communication.

What we see from our clients Our intuitive injury management dashboard provides us with real-

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time data to understand the impact of injuries (specific to each of our Employer’s business) in their workplace the ability to identify trends such as the high prevalence of sprains – the top being lumbar strain in the last 12 months.

The most common injuries we see across all our clients, no matter the industry, are muscular strains and sprains, with the #1 injury type being, a lumbar injury.

It goes hand in hand that the volume of claims associated with sprains and strains dominates the associated claims cost. We typically see that this claim type accounting for over 75% of claim costs. What we also know is that early intervention on these claims results in reduction in the duration and total cost.

Through providing our clients with real-time access to data, we can

collectively recognise trends and issues, whether it be a particular claim type that’s happening or a particular work site incurring certain injury types. We also use our quarterly reports to provide insights and observations which enables businesses to concentrate efforts to prevent high occurrence claims, such as lumbar, or whatever is particular to their workforce.

How to prevent these injuries in the workplace Preparation is key when it comes to managing the risk of injury in any workplace. Top tips for helping reduce such injuries can include: • Communicate or train employees on the best ways to lift heavy items, encourage them not to lift or move items if they are not trained, advise of any existing injuries or whether they should be

Most common injury type in last 12 months Lumbar Sprain

34.91%

Shoulder and Upper Arm Sprain

11.66%

Ankle Sprain

9.79%

Neck Sprain

8.18%

Thoriac Sprain

6.67%

Knee and Leg Sprain

5.76%

Wrist Ligament Sprain Open Wound of Finger(s) or Thumb Elbow and Forearm Sprain Rotator Cuff Sprain Concussion Head Injury

4.90% 4.35% 3.86% 3.57% 3.25% 3.09% *Statistic accurate as at March 2022

Jo Kant, Gallagher Bassett Client Services Manager, is a Registered

Nurse, health and wellbeing manager and advisor who understands the risks of injury in a workplace and how companies can not only safeguard their employees but also their injury costs.

undertaking lifting as part of their role. Because it is not always possible for managers and supervisors to be there all the time, it is important for managers to ensure the employees are competent to do the tasks assigned to them and that they carry it out responsibly and safely. Supervisors also need to encourage team members to speak up about something they see may lead to injuries to themselves or others.

• Ensure key messages are around the office with tips for preventing muscle strain or injury, in particular, those pertaining to the lumbar region. This could include using our Poster Designer Tool which has many options for stretches at the start of the day, as well as during the day, to prevent muscle fatigue (for office workers) or how to lift

heavy items (for office or manual workers).

• Ensure a safe work environment free of hazards and risks as much as is practicable (see the Health and Safety Act). Hazards that can’t be removed should be controlled.

• Having an injury management plan in place so that all employees know what to do if, and when, they are injured, as well as their entitlements. Early reporting allows the all-important early intervention and Gallagher Basset’s guidance, which our data tells us leads to employees returning to work quicker. This is estimated at more than 10 days earlier than the average ACC managed claim.

Although many workplaces have injury management plans in place, it’s important to implement regular training refreshers to remind

workers what they should do when njured. It’s also critical for employees to understand their responsibilities and entitlements due to work injury, as well as the ability for alternate duties and their need to comply with rehabilitation plans.

With common injuries having the ability to significantly impact productivity, staffing and also result in injury claims, businesses should start considering how to can take some simple steps now to manage risk.

Companies can help prevent these common injuries in the workplace with education, training, information an injury management plan and a safe work environment.

Preventing sprains and strains from occurring will dramatically transform businesses productivity and people wellbeing.

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Feature

Support for Levin community hit by tornado T

he Government contributed $100,000 to a Mayoral Relief Fund to help the Levin community following a tornado in the North Island town.

Government’s support, and want to thank everyone who has moved quickly to respond to this event and keep people safe.

Minister for Emergency Management Kiri Allan said: “My thoughts are with everyone who has been impacted by severe weather events in Levin and across the country.

“As the response moves into clean up and recovery, I encourage everyone in the region to continue to follow advice and instructions from Civil Defence and the Horowhenua District Council. Stay safe, don’t take any chances,” Allan added.

“I know that this has caused considerable damage and been extremely disruptive to the Levin community. While it’s too early to know the full cost of the damage, this initial contribution will help ensure there is minimal delay in supporting those who need it.

Insurance Australia Group and its brands AMI, State and NZI have provided support to customers.

“I have been in touch with Horowhenua Mayor Bernie Wanden to offer the 16

June 2022

Mayoral Relief Funds are intended to help fill gaps quickly where an immediate need exists. It’s not a replacement for insurance and costs covered by other funding sources.

“Today’s events, such as the tornado in Levin this morning, are a reminder of the destruction wild

weather can bring, and our thoughts are with those who have had their lives disrupted as a result of the storm system today,” said Wayne Tippet, executive general manager, claims, IAG New Zealand.

“As of 12:30 pm Friday, we have received 100 claims across our brands, largely for damage sustained to homes and roofs. We expect this number to rise as the extent of the damage becomes clearer. As soon as it is safe to do so, we will deploy teams to affected areas to provide on the ground support to customers.

With further bad weather forecast, our priority is assessing damage to broken windows and roofing, so people’s homes and businesses can be secured as quickly as possible.”

A total of 50 homes were damaged in the storm.

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Despite the changes, one thing remains true: having the right team behind you matters.

NZI has been insuring Kiwi businesses for over 160 years. Today, nearly 300,000 New Zealanders choose NZI to have their back and protect what matters most to them.

Your success matters to us.

Talk to your broker about insuring with NZI. www.covernote.co.nz

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A

dventure. Speed. Challenge.

These are the three things that get Andy Beven, NZI’s Underwriting Liability and Cyber Manager, up and out of bed in the morning. Not only for the role he plays in protecting businesses against cyber risks, but also during his free time, when he’s taking on an adventure or two.

Andy started his insurance journey in the UK and, 32 years later, he’s never looked back. He has worked across several portfolios including property and professional indemnity and even had a stint in sales and claims – until over a decade ago 18

June 2022

when he discovered his new passion, cyber.

“What excites me about cyber is that it’s an area that’s constantly developing and changing, which challenges me to keep up with the latest trends and I truly find it one of the most exciting areas of insurance.

No day is the same and I’m all up for that.”

In 2015, Andy took up a new challenge and joined NZI to lead the development and launch of NZI’s cyber product to market. It’s an exciting and ongoing journey as he aspires to continue to help businesses

HUMANS of

improve their cyber security and build a stronger cyber safety awareness culture.

“We don’t want to just be the ambulance at the bottom of the cliff, we also want to be the fence at the cliff to stop something from happening.”

“This won’t happen to me” Nowadays most (if not all) businesses rely on technology in some form or another. Even something that may sound as simple as sending out an invoice from your work email carries a potential cyber risk.

For Andy, the “this won’t happen to me” mentality is an issue because cyber-attacks don’t just happen overseas, they are happening to New Zealand businesses every day.

“A cyber-attack can be life threating to a business. Criminals aren’t usually targeting just one specific business – they’re sending out millions of emails and hoping one percent of those will get clicked on. It’s a very opportunistic type of crime for the most part, and they’re becoming more and more sophisticated.

“It’s easy for smaller businesses to be under the misconception that it’s not going to happen to them, and it’s all too easy to think it only happens to big corporates. For example, one of our largest and most recent claims was a panel beater who experienced a cyber-attack, which illustrates that it can happen to anyone.”

Being cyber-ready Andy explains that emails are by far the most common source of cyberattacks, which is why developing a strong focus on staff education and cyber safety awareness is key to helping reduce cyber risks.

“In my experience, most cyber incidents are due to human error, from clicking the wrong link, opening the wrong attachment, or even sending something to the wrong recipient.

“At NZI we offer access to UpGuard, a programme which helps businesses

better understand their cyber risks.

We can produce a report and outline what their system vulnerabilities and weaknesses are, which paints a good picture of their current cyber security position and where improvements can be made.”

While it’s essential for a business to have measures in place to help prevent a cyber incident from happening, there’s much more to it than that. For Andy, cyber insurance is as important as protecting physical goods such as properties or vehicles.

Feature

“I’m a big fan of anything that has to do with being out in nature and trying new things. When I’m not working, you will find me camping, hiking, biking, kayaking, fishing, doing bush walks, anything you can think of really that doesn’t involve sitting down!

“When you think about the security for your house, you get home insurance cover and install a smoke alarm, and you have the expectation with your family that you won’t leave the door open. This is no different to cyber and making sure your cyber ‘house’ is secured. In this case your ‘alarm’ would be your antivirus or firewall that is going to let you know when something is not right, and your cyber insurance cover is there to protect you if something did go wrong.”

The clock is ticking The key during a cyber incident is time – the way you respond during the early minutes and hours will dictate how it will play out, and this is where insurance cover and a fast claims response is key.

“A lot of clients might not understand how much of a crisis it really is at the time. It can be scary, time consuming, and put businesses into panic mode. If they can’t get into their folders and systems, it can be catastrophic.

“When cyber claims happen, they happen fast. This is where NZI can help businesses get their systems up and running quickly again.”

Adventure both at work and home Andy was brought up in the South of London, and after meeting his wife they decided to start a new life in her beloved home (Aotearoa). In 2006 they made the big move to the country that, for Andy, is the best place in the world to do what he loves the most – adventure.

One of Andy’s fondest memories was doing the Tongariro Alpine Crossing a couple of years ago with his wife and a group of friends, where he experienced all four seasons in one day.

“When we started our hike, we were ready for a cold day – it was May – and once we got to the first plateau it was so hot that I wished I’d worn shorts, but as we got closer to the summit it started to get colder and colder, and eventually started snowing. When we came down it started to pour down with heavy rain, which we weren’t ready for either!

“It was a great adventure, and a great reminder that it pays to be prepared.”

www.covernote.co.nz

19

Feature

FMA publishes record-keeping tips T

he Financial Markets Authority has published an information sheet for Financial Advice Providers on how to demonstrate compliance with record keeping obligations.

Under the new financial advice regime Standard Condition 1 for both transitional FAP licences and full FAP licences states: “You must create in a timely manner and maintain adequate records in relation to your financial advice service.”

The regulator has provided information online to help advisers respond to the new rules.

Its information sheet provides an overview of the record keeping obligations and sets out areas for FAPs to consider when reviewing their record keeping practices. It also includes examples to illustrate how FAPs can demonstrate compliance with the requirements.

FMA director of supervision James Greig said: “Our monitoring of the previous financial advice regime consistently identified poor record keeping as an area of concern. This included insufficient records about the services provided to clients and incomplete information on whether key obligations had been fulfilled.

“Good record keeping ultimately helps financial advice providers to demonstrate that they are serving client interests. We know that many financial advice providers are adapting and evolving their processes to comply with this standard condition, so we are trying to help the industry with this practical information sheet.”

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June 2022

Insurance for cars in a class of their own Special cars deserve specialist insurance. Star Enthusiast is for people who have special vehicle interests and needs that are anything but ordinary. Created by the company that understands unique, vintage, classic and project cars, our team at Star are passionate about protecting the vehicles your clients are passionate about.

For extraordinary insurance designed for your client’s vehicle, choose Star Insure.

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Feature

A new insurance broker is on the horizon.

Be that broker 22

June 2022

Customer demands require faster, more personalised solutions now more than ever.Feature We’re here to help you take the lead in the changing broker landscape by delivering a premium experience to your customers.

It can be frustrating when people get a windscreen chip or vehicle door windows broken and they need to be out and about. That’s why at Smith&Smith®, we continuously strive to find ways to improve and innovate so that we can get your customers back on the road as quickly and safely as possible.

Working smarter together, we can provide exceptional customer service that is quick, easy, and convenient. That’s where our online booking system comes in, branded with your business name and logo. It’s an easy way to introduce a hassle-free and user-friendly claims solution for your customers.

Choose Smith&Smith® as your preferred partner!

Nationwide service With over 60 locations across New Zealand’s 16 regions, there’s bound to be a corporate branch, Authorised Dealer, or mobile service near your customers.

Highly trained technicians We follow a global best practice standard, including a strict 40-step process for every job. We’ve also partnered with BCITO to develop and review the New Zealand Certificate in Automotive Reglazing (NZ CAR) qualification. When joining our team, our technicians agree to complete this essential qualification.

World class tools and training We have a dedicated research team at Belron International who keep up-to-date with the latest vehicle manufacturer developments in vehicle glass and windscreens. They invest over €2m a year that goes into continuously improving our knowledge and developing outstanding tools and processes.

Recalibration experts Advanced driver assistance systems (ADAS) are becoming more common in vehicles worldwide.

We understand the complexity of these systems and how they improve road safety. When your customers come to us for their windscreen replacement with ADAS, we can safely and expertly provide a recalibration of their forward-facing windscreen camera.

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23

Feature

Is safety technology having the desired impact?

Oliver Jepson, National motor manager, NZI

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occur and therefore, how businesses could prevent them from happening in the first place.

However, even with these advances in technology improving safety, there were 318 people killed in crashes in 2021 on New Zealand roads, indicating that road deaths remain stubbornly and tragically high.

Is safety tech actually a distraction?

he first breakthrough in car safety came in 1934 when General Motors performed a crash test for the very first time on a 1929 Chevrolet. Since then, the transport industry has (thankfully) come a long way when it comes to safety, with most new vehicles now featuring some form of driver assistance technology (commonly known as Advanced Driver Assistance Systems) – whether that’s adaptive cruise control, reversing cameras, adaptive braking, lane-departure warnings, or in-vehicle cameras.

Responding to the road toll A key component of NZI’s business is our dedicated Fleet Risk Management team. This team of experts work collaboratively with fleet owners around the country to create safer workplaces, improve driver performance, and identify trends that could help explain why accidents 24

June 2022

As part of this work, we set out to uncover what impact safety technology is having on New Zealand’s commercial drivers, from trucks and haulage through to courier and fleet cars. NZI’s newly released Improving Road Safety Through Technology report provides insights on awareness, understanding and usage of these new driving technologies – including a potential disconnect between the organisations implementing the technology and the drivers expected to use it.

An independent research agency asked drivers to describe their major concerns when out on the road.

Interestingly, a fifth of respondents cited safety warnings or alerts from in-vehicle safety technology as a potential distraction.

Many manufacturers now have a higher level of standard technology in their vehicles, which is having a

•

1 in 10 had disabled Traction Control

•

1 in 7 had disabled Stability Control

•

1 in 7 had disabled Adaptive Headlights

No hats on the dash, please I’ve been with NZI for nearly six years and have seen first-hand the wariness that persists from some drivers towards technology. One recent example is a truck driver who put his hat over the in-cab camera as he didn’t want the technology recording him, preventing the system from detecting and alerting him to fatigue or distraction. This speaks to a lack of understanding about the technology, as footage is only recorded when the facial monitoring system detects fatigue.

The report’s findings — that drivers aren’t just overlooking some technology but actively going through the process of disabling it — comes from a mix of motivations: •

a preference for more independent driving;

•

a perception that the technology is distracting or counter-intuitive; and

•

a sense that roading infrastructure, especially in terms of lane markings, might not be sufficiently developed for technology such as Lane Departure to function smoothly and reliably.

More training needed to use ADAS technology effectively

Interestingly, NZI’s Improving Road Safety Through Technology report notes that while a large percentage of drivers surveyed believe it’s worthwhile having technology in their vehicle, and that it makes the roads safer, there is work to do in helping them understand the benefits and how to use the features correctly.

While ADAS safety technologies have advanced a great deal in recent years, our research shows that 43% of drivers surveyed said they knew little about these tools.

Despite the clear safety benefits, our research also found that education and training around these tools is lacking, with 57% of those fleet drivers surveyed saying they had received no training in how to use the ADAS features in the fleet vehicle they drive. positive effect. However, our research uncovered a lack of understanding around how the technology works and therefore, some reservations about using it.

As the technology in vehicles becomes increasingly complex, we need to consider how well it’s understood, and what training is provided on how to use it. Otherwise it could be seen as a blinking light or beep from the dash that can potentially distract us.

Here are some key stats from NZI’s report: •

9 in 10 fleet drivers understood Adaptive Cruise Control very well or quite well, but 2 in 10 said they had opted to disable the feature

•

8 in 10 understood Lane Departure Warning very well or quite well, but 1 in 4 had disabled it

•

8 in 10 understood Lane Centering well or quite well, but 1 in 4 had disabled it

In addition to these supportive features, some drivers were disabling technology with clear safety benefits that ought to be left on:

This suggests more training is needed to help drivers understand how to use the technology effectively, and to develop a positive attitude toward it, so that they become second nature.

Get Fleet Fit We are seeing compelling data from overseas that shows a reduction in accidents thanks to safety technologies. Getting the best results out of these technologies, however, requires a collaborative effort across the industry.

From the supplier end, with reps at dealerships, through to third party seminars and courses, to in-house approaches among businesses, there needs to be several avenues for drivers to be trained and educated in the new technology.

My hope is that NZI’s report will play a part in educating drivers and fleet managers on the benefits of ADAS technologies and support New Zealand businesses to implement them successfully through effective training.

www.covernote.co.nz

25

Feature

RAM Raids on the rise Garry Taylor, executive general manager at NZI, reveals how businesses can minimise risks of ram raids, and recover from attacks.

I

f you’ve been following the news, you’ll know that ram raid attacks have left a path of destruction across Auckland in recent months.

Multiple targets have been hit, with offenders becoming more and more brazen – shifting their focus from local shops to malls and higher end stores.

Our anecdotal evidence shows that, particularly in the Auckland area, tobacco, cigarettes and alcohol products are being targeted as well as clothing and designer goods stores. We're also seeing an increase in claims for stolen vehicles used in ram raids, with many of our customers being contacted by police

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June 2022

in the early hours of the morning to let them know their stolen vehicle has been used in a ram raid.

These attacks aren’t just a problem for Auckland though – retail stores around the country need to consider the threat of a ram raid to their business. It’s worthwhile for small business owners to take note of the following advice we’ve gleaned through our experience of working with customers in these situations.

Minimising disruption to your business BOLLARDS

Bollards and other types of onsite deterrents are well worth the investment. Bollards are strong visual

deterrents, however they vary in their effectiveness if not installed correctly.

We recommend choosing bollards that are made of steel and properly installed and buried at least 500700mm into the ground.

Ram beams are another effective solution when underground cables and pipework make bollards difficult to install.

REMOVE TEMPTATION There are also day-to-day steps retailers can take to mitigate risks. The most obvious is removing temptation from the shop window at night. It is good practise to move stock out of sight and take the till drawer out to show it is empty. The simple act

of turning every other coat hanger around on clothing racks can also slow down a smash and grab.

These ram raiders want branded goods, and items that are easily disposable through social media – so branded clothing, surf and sports gear, power tools and of course, cigarettes.

FOG CANNONS Fog cannons are another effective defence, and more and more retailers have been installing them thanks to awareness raised through government initiatives. They can fill a store with a heavy harmless fog in 10-20 seconds. So thick, you can’t see your hand in front of your face.

Not only does it prevent raiders from seeing stock, but the fog can also allow store owners and staff to make a safe exit.

I’d also suggest talking to local police to get advice on the latest burglary prevention measures, and to also consider getting a risk assessment completed.

Helping businesses get back on their feet Ram raids are disruptive at the best of times and for some of our customers, sadly, it can take a long time for their business to recover.

As well as having the right insurance, it’s important that shop owners also protect themselves

through effective risk management and prevention to minimise the disruption to their business. We offer specialist advice to help businesses improve their security, and our national team of Risk Management professionals can help assess the likelihood and consequence of loss to a business as well as put together strategies to mitigate this risk.

Our Risk Consulting team has over 25 years' experience supporting the commercial business community and they personally visit over 3,000 customers every year. This scale gives us the insights to identify potential risks to businesses and suggest mitigation measures to address these.

www.covernote.co.nz

27

Opinion

Natural Hazards Insurance Bill looms

Keegan Alexander partners Crossley Gates and Frank Rose explain changes arising from the Naural Hazards Insurance Bill.

T

he Natural Hazards Insurance Bill repeals the Earthquake Commission Act 1993 (EQC Act) and replaces it with the Natural Hazards Insurance Act 2022.

The intended commencement date of the new Act is the later of: • •

1 December 2023, and 12 months after it receives the Royal assent (becomes law).

Although the natural hazards covered by the Bill do not fundamentally change, the name change is to better reflect the fact that the Bill covers more than earthquakes.

The Bill calls the cover it provides ‘natural hazard cover’.

The Bill expressly refers to the cover as insurance. The cover is for ‘natural hazard damage’ as described in the Bill.

The nature of the cover remains similar to the EQC Act in many respects, but with a number of changes we will highlight below. The Bill greatly expands the terms on which the cover is provided, as well as the entitlements it provides. For the first time, it directly addresses a number of building and land ownership issues that may arise under the cover and at claim time, such as shared, common, or joint property. It appears the Commission has learnt many lessons from the Canterbury earthquake claims.

The Bill has an extensive section on claims and claims handling. It expressly states in 10 sections the grounds on 28

June 2022

Opinion

which the Commission can decline a claim. It makes it clear that those grounds cannot be prejudiced by any action taken by the Commission in assessing, deciding, or settling the claim. In other words, the common law relating to estoppel and election by the insurer does not apply.

Consistent with the current trend towards consumer friendliness, and perhaps in response to the criticism the Commission received from some about its handling of the Canterbury earthquake claims, the Bill requires the Commission to create, and adhere to, a Code of Insured Persons’ Rights and to have a complaint management procedure. It must also belong to an approved dispute resolution scheme Natural hazard cover The Bill covers the same natural perils covered under the EQC Act, but each one is now expressly defined in the Interpretation section.

The natural hazard cover insures against ‘natural hazard damage’, defined to mean physical loss or damage to a residential building or residential land: •

that occurs as a direct result of a natural hazard or measures taken to mitigate its consequences, or

•

that in the Commission’s opinion is imminent as a direct result of a natural hazard.

In the same way as under the EQC Act, the natural

hazard cover commences for a dwelling when the insurance cover over that dwelling for the peril of fire commences. It continues so long as the insurance cover continues.

The cover for a residential building pays the replacement cost of the building. This is defined in a similar way to how replacement cover is defined in a Material Damage Policy.

The cover for residential land is on an indemnity basis as set out in the Bill.

Building cover Section 28 is, what is effectively, the insuring clause of the Bill; it provides insurance for ‘dwellings in an eligible building and certain other related property’. It divides the cover into building cover and land cover In relation to the building cover, a ‘dwelling’ is defined as a building or part of a building that is: •

self-contained with facilities for day to day living on an indefinite basis (including somewhere to cook, sleep, live, wash and use a toilet), and

•

one or more of the following applies:

- One or more persons use it to live in as a home, or

- One or more persons use it as a holiday home, or

- It is capable of being used and is intended by the owner to be used for one of the two uses

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29

Opinion

immediately above.

A ‘dwelling’ also includes: •

•

a building used to provide long-term care for the elderly, and a vehicle, trailer, boat or aircraft that is immovable.

An ‘eligible building’ is defined as: •

a building that contains one or more dwellings and the whole building is insured under a single fire insurance contract, or

•

a part of a building that contains one or more dwellings and is insured under a single fire insurance contract, or

•

an immovable vehicle.

A ‘residential building’ is defined as: •

the whole of the eligible building, other than the property excluded as stated in Schedule 2, and

•

any other appurtenant structures and service infrastructure (as defined) for the dwellings in the eligible building.

The number of dwellings in a residential building is: •

•

the number that was disclosed to the fire insurer when the fire insurance for the dwellings was entered into, or if no number was disclosed, one.

The maximum amount of cover available for residential buildings under the Bill is $300,000 plus GST for each dwelling in the residential building.

While this is not new, insurance brokers arranging fire insurance over buildings that contain dwellings will need to be careful to disclose, on behalf of the client, the correct number of dwellings, as this determines the maximum amount of cover provided for the residential building. If no disclosure is made, the Commission will be legally entitled to assume it is just one.

Land cover In relation to the land cover, the ‘residential land’ in relation to a residential building is defined as: • any part of the land that is one or more of the following:

- land on which the residential building sits,

- land that is within 8 metres horizontally of the residential building,

Claims The Bill says claims must be made in the way stated in regulations not available yet.

The Bill sets out a formula that determines when natural disaster damage that occurs in succession is one claim or more than one claim. If defines the ‘damage period’ as the period starting when the damage first occurs and ending: •

48 hours later for earthquake, flood, hydrothermal activity, landslide, storm, or a tsunami, and

• 7 days later for volcanic activity or a natural hazard fire.

The time limits for making a claim are: •

Standard Claim Date: 3 months after the date when the earliest damage occurred.

•

Extended Claim Date: 2 years after the date when the earliest damage occurred.

•

After the Extended Claim Date: Beyond 2 years if certain discoverability issues apply.

A claim made after the Standard Claim Date and within the Extended Claim Date may be declined by the Commission if the delay beyond the Standard Claim Date materially prejudices the Commission’s ability to assess the claim.

The Bill sets out a number of ways the Commission can settle the claim.

As stated above, the Commission can only decline claims under one of 10 sections of the Bill providing different grounds.

Levy The levy payment arrangements are similar to those in the EQC Act. The fire insurer must collect the levy from the insured and pay it to the Commission within 2 months of the end of the month in which the fire insurance commenced.

As a disincentive to levy evasion, the Bill creates a new offence of intentionally failing to meet the levy payment arrangement. If convicted, an individual may be sentenced to 2 months’ imprisonment or a fine of up to $25,000, or both, and a company may be sentenced to a fine of up to $50,000.

The Bill has been referred to a Select Committee to receive submissions.

- land that is part of, or supports, land that is part of the main access way and is within 60 metres horizontally of the residential building, and •

any retaining walls for the residential building, and

•

any bridges or culverts for the residential building.

The maximum cover available for residential land is the lesser of: •

the actual cost suffered as calculated by way of calculating the reinstatement cost or diminution in value, or a combination of both, and

•

the maximum land cover amount based on the assessed market value using the stated criteria.

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June 2022

Please contact us if you require any further information.

Crossley Gates cgates@keegan.co.nz

Frank Rose frose@keegan.co.nz

IANZ

Awards IANZ HERO AWARD Hanneli Olivier

Let’s celebrate Congratulations to all the winners at the 2022 Insurance Advisernet Black Tie Gala Dinner Awards.

Day in, day out, you stand by your customers, through all the ups and downs.

Thank you, from all of us.

FUNDER OF THE YEAR Elantis Premium Funding

It’s a privilege to work alongside you.

insuranceadvisernet.co.nz INSURANCE PERSON OF THE YEAR Vernon Fernandez- ANDO Insurance (accepted by Dion Herdson)

BROKER OF THE YEAR Sherpa Insurance Brokers & Advocates

CHAIRMAN'S AWARD Rick Behague & Kerry McIntyre

EMERGING BROKER OF THE YEAR Jeremy Barber Insurance Brokers Ltd

INSURER OF THE YEAR ANDO Insurance

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31

Feature

$1bn NZ auto repair industry under threat from insurer model N

ew Zealand’s car repair industry could lose up to 15% of its revenue to offshore-owned rivals, industry experts have warned.

It comes as insurers under Australian-owned IAG (AMI, State, NZI and Lumley), rapidly vertically integrate their operations throughout New Zealand.

The groups, with a 60% share of the local market, have opened high-volume panel repair shops in Auckland, Wellington, Hamilton and Christchurch.

The insurance group’s facilities, which operate under the ‘Repairhub’ brand, can process four times the amount of work of an average repairer, representing 15% of industry volume.

Neil Pritchard general manager of the Collision Repair Association (CRA) said the insurers can selectively channel the more profitable, cosmetic repair work through their

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June 2022

claims process directly into their own repair network.

He says prior to 2019, almost all 500 collision repair shops in NZ were locally owned and the additional competition faced by the new insurer model could not have come at a worse time for the industry.

“Since its inception, the local collision repair industry has been made up of hundreds of New Zealand owned panel repair shops,” he said.

“With prices dictated by insurers, the industry does not operate under the same competitive forces that most other service providers do.

“The absence of these forces creates a high level of vulnerability to external cost changes for businesses and when this is coupled with the introduction of an insurer network which can artificially capture high volumes of work from the most lucrative jobs, it places our ability

to develop infrastructure for more complex, structural repairs in jeopardy.”

“What we are seeing at the moment is the culmination of several economic factors which are threatening the long term viability of the industry and could see the reduction in services for Kiwi consumers,” he said.

Pritchard called for more oversight of the sector.

“Most consumers would be unaware that the repair facility being advocated by their insurer is also owned by the insurer and the profits flow offshore rather than being retained by local businesses.

“Our concern is that with the insurance industry now effectively self-monitoring the quality of their own work, and the resulting loss of transparency in the relationship with their repairer, there is little in the way of consumer protection.”

Feature

Rothbury makes senior hires R

othbury Insurance Brokers has made a round of senior hires across New Zealand.

for developing strategies and empowering and mentoring their respective regional teams.

Paul Munton, Rothbury’s executive general manager for broking branches, said the appointments would strengthen the business by supporting its branch network, and enhancing operational efficiency.

The appointments follow a business review conducted by Rothbury last year which highlighted the need for more capacity to enable brokers and support staff to better service their clients.

Brigitte Windsor has been appointed as general manager for national partnerships and facilities. Windsor has more than 30 years’ experience in the insurance industry and was formerly Rothbury’s National Domestic Manager for three years.

“We recognised that to maintain an environment where brokers and support staff could continue delivering an outstanding client experience, greater leadership was needed,” said Munton.

Kevin Wellwood returns to Rothbury to become general manager for broking branches.

He will work with three new regional managers, Greg Greenwood, Nathan Haywood and Todd Mountfort.

Greenwood, Haywood and Mountfort will retain their current branch manager responsibilities in Canterbury, Southland and Rotorua/Pukekohe respectively, Rothbury said.

The new regional managers will be responsible

“This new capacity will bring additional leadership closer to our people and provide more support for our teams who are focused on delivering at the coalface to their clients.”

“These individuals are highly regarded and respected within Rothbury and come with a wealth of knowledge. I am incredibly excited to work alongside Brigitte, Kevin, Greg, Nathan, Todd and the rest of the leadership team to further build the Rothbury business for our clients and people,” said Munton.

www.covernote.co.nz

33

FSCL Case Study

Insurance broker meth dispute S

imon* owns a small rental property in Christchurch and approached an adviser for help with insurance.

The adviser gave Simon several policy options, one of which suited his needs. Simon took out the insurance and tenants moved in.

A year passed with no issues. The adviser then contacted Simon when his policy was due for renewal.

After a few weeks, Simon considered his options and renewed his insurance cover.

A few months later, the tenants in Simon’s property moved out and as part of the move-out process, Simon arranged for meth testing to be carried out. The testing showed that a small amount of meth residue had been found in the kitchen. Full decontamination of the kitchen was recommended in the report along with other minor repairs.

Dispute

Simon contacted his adviser who assured him that his insurance would cover the cost of the clean-up of the kitchen and any loss of rent while it was carried out. Simon was told no one was to enter the property while the cleanup was taking place.

The adviser then made a claim with the insurer, but it was declined.

The insurer said that the meth levels found in the kitchen were below the threshold to trigger their cover. The insurer told Simon that, before his last renewal, they had increased the meth levels which must be met for a claim to be paid.

INSIGHTS FOR CONSUMERS

Consequently, the loss of rent benefit was also not payable. The insurer said they had told Simon’s adviser of the changes and he should have been made aware.

Simon complained to FSCL that he was not made aware of the changes to his policy by his adviser, either at the time of the changes nor when he renewed his policy. He wanted the adviser to cover the cost of the repairs and the loss of rent also.

The adviser accepted that they could have gone further in making Simon aware of the changes made to his policy and that they could have been quicker to recognise that he wasn’t covered. The adviser offered $1500 as compensation which Simon declined.

Review

The Government recently commissioned a report into New Zealand’s attitude to meth and contamination.

Following the report, some insurers raised the threshold for the amount of meth contamination required to trigger cover under the policy.

The adviser gave Simon almost 2 months to look over the insurance policy and ask any questions. FSCL considered this sufficient time for Simon to consider the policy and determine whether it served his purposes.

Resolution

FSCL considered it unreasonable to expect the adviser to have explicitly pointed out the insurer’s rise in their meth threshold. It decided that the $1500 offered by the adviser was reasonable.

* name changed

Advisers have a positive ongoing duty to make sure the insured knows and understands the extent of their insurance cover and any changes in their policy. It is not for the adviser to determine whether such a change affects the insured’s needs; the information still needs to be passed on. However, the insured is also responsible for reading and understanding the policy.

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June 2022

FSCL Case Study

Car written off but bills remain

L

ucinda* was driving her BMW by a lake when she was caught up in flash floods. Water splashed up into the engine bay and into the computer systems at the rear of the car.

After getting the car towed home, she asked her insurance company for advice on how to get the car fixed. The insurance company sent her a claim form and told her to get the damage assessed. Lucinda took the car to her local BMW dealer who assessed the damage and told her it would cost $500 to repair.

After a couple of weeks, the repair costs to the car had escalated and Lucinda had paid more than $5000 to the car dealership. Only then did she contact the insurance company again to make a claim.

The insurance company assessed the car and determined that the car was a write-off.

Dispute

The insurance company agreed to pay out $10,000 to replace the car. They were unwilling however to pay the $5000 she had already paid for the now-defunct repairs on the car.

Lucinda complained to FSCL that the insurance company had not told her that she shouldn’t pay for any repairs before making a claim, nor of the risk the car could be written off. She complained that she was out of pocket $5000 because of this error.

Review

The insurance company said that they did not approve any repair work to the vehicle and the repair was started before their involvement. If a claim had been made when the accident first happened, as they had advised, Lucinda would not have been in this situation as the car would have been deemed a write-off from the start.

It was difficult to determine what the insurance company told Lucinda as the person she spoke to made very rough notes after the phone call. The notes could not be relied on to give a full picture of what was discussed and what advice was given.

Resolution

FSCL determined that instructions on how to make a claim were clear in the policy documents and on the insurance company’s website. The information clearly stipulated that a claimant must obtain the insurance company’s agreement before they incur any expenses in connection with any claim under the policy.

Even without the full details of the conversation between Lucinda and the insurance company, FSCL considered it likely that the need to make a claim was discussed early on. FSCL found that Lucinda should discontinue her complaint. She agreed to do so.

This meant that Lucinda ended up being out of pocket $5000 because she didn’t make a claim straight away.

INSIGHTS FOR CONSUMERS

* name changed

Typically, if the value of damage approaches 50% of the value of the vehicle, the insurer may decide to write it off. The insurance company looks at what will cost them more; to repair it or write it off. Also, if repairs are not carried out properly, this could cause more expense in the future.

This means that it is very important that a claim form be submitted at the earliest opportunity so that the insurer can appropriately manage the repairs and any associated costs. People may be left out of pocket if they pay for repairs that haven’t already been considered and approved by their insurance company.

www.covernote.co.nz

35

IFSO Case Study

Payout brings more pain I

n a recent complaint to the IFSO Scheme, Sai* was seriously injured in a car accident, and suffered more pain when his claim payment was $12,000 less than he expected.

Sai and his partner were seriously injured in the accident, and his car was a total loss.

Sai had car insurance, with a sum insured of $26,000. The insurer obtained two market valuations and told Sai they would pay the market value of $18,000.

Sai made a complaint, because he believed he had “Agreed Value” cover and the insurer had to pay him $26,000.

* name changed

Agreed Value is the amount you and your insurance company agree to insure your car for. “’Agreed Value’ means you nominate what your car is worth if it is a total write-off,” says Karen. “Many owners choose it, even though it can have higher premiums than ‘Sum Insured’.

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June 2022

“However, ‘Agreed Value’ doesn’t mean it is an amount that never changes,” continues Karen. “The agreed value for your car is assessed annually at your policy renewal and it takes depreciation into account.

In this case, Sai had taken out his vehicle insurance some years previously, so depreciation was a factor in the amount offered.”

found there was no misrepresentation made to Sai. Furthermore, he could not show he had suffered any detriment, because the insurer had said that, if Sai had “Agreed Value” cover, the vehicle would have been depreciated each year and the “Agreed Value” would have been $16,650 at the time of the accident.

Sai had arranged a “Sum Insured” policy. “Sum Insured” means the insurer pays either the value the vehicle has been insured for, or the market value of the vehicle at the time of the accident, whichever is less.

The IFSO Scheme found no evidence of a breach of the duty of good faith and found the insurer had paid the claim in accordance with the terms and conditions of the policy.

Sai complained to the IFSO Scheme saying he had always arranged “Agreed Value” insurance for his vehicles, and he believed the insurer knew that was what he thought he was doing, because of a comment he made in a telephone call about the “agreed amount”.

The IFSO Scheme investigated and

“All too often, not understanding insurance terms means consumers are going to be disappointed with the outcome,” says Karen.

“I’m concerned that misunderstanding hits people hard when stress levels are already extremely high. Checking your policy only takes a few minutes and could save you a lot of grief in the future.”

IFSO Case Study

Steak cooked in a toaster sparks disaster

he sequence of disastrous events began innocently enough when Mr H* had a craving for steak and chips. For reasons unknown, he decided to cook his steak in a toaster. Having inserted the steak into his toaster and started the toasting process, he had a further strong desire for hot chips. Leaving the toaster unattended, he left the house for his local fish and chip shop.

The ensuing fire left the house severely damaged.

Fortunately, the couple’s home was insured. However, they were in for further stress when they made their claim. Despite their insurer accepting their claim and offering $418,000 the maximum amount that could be paid under the couple’s policy, the couple felt the sum was not sufficient to replace the house. Contacting the Insurance & Financial Services Ombudsman (IFSO), they argued that the insurer should pay them an additional $200,000, a further sum that they claimed was required to rebuild the house.

Additionally, they complained that

the insurer was not clear there had been a previous change in policy cover, from replacement cost cover to total sum insured cover.

Karen Stevens, IFSO, said the fire was a tragedy for the couple, but not understanding the annual insurance renewal process or the cost to rebuild their home, added further avoidable suffering.

“Every year, everyone with insurance policies receives a renewal offer that can amend or change the policy that they originally signed.

“I can’t stress highly enough the need to read each renewal letter carefully. Most insurers now offer total sum insurance, meaning your house is insured for a set price. If you don’t do your homework and insure your house for too low a sum insured, you could find yourself unable to rebuild your home. The sum insured should be what it would cost to rebuild, not what it’s worth on the market.”

“Your acceptance of the new terms is often the next payment of your premium.”

Stevens says that for those who are unsure of their home’s value, there

are online calculators to assist, but they are estimated building costs only.

“Online calculators aren’t a substitute for an insurance valuation provided by a registered valuer or home valuation provided by a building expert. We recommend you get the experts in if you’re unsure.”

IFSO did not uphold the couple’s complaint, saying that the insurer had paid the policy’s maximum entitlement and that the couple had been adequately informed of the change to their policy.

Stevens believes that, in this case, the original fire event was preventable, and one that must have wreaked havoc with the couple’s lives.

“Cooking steak in a toaster is literally a recipe for disaster. To have then left the house and toaster unattended for the sake of hot chips must be a constant source of regret. Never, never leave cooking unattended, even if you think you’ll just be a minute – and please, use your appliances for the purpose for which they designed.

Toasters are for toast.”

www.covernote.co.nz

37

* name changed

T

Ask an Expert

QUESTION

Gradual damage question We have a client that has discovered gradual damage due to a fault in the shower mixer. There has not been any visible signs of any damage until the client pulled some furniture out from a bedroom wall.

At this stage, visible signs of some water damage was found. Further investigations are happening as to any potential damage within the wall itself.

Hidden Gradual Damage clause is as follows: You are insured for: 1. hidden gradual damage to any insured property that happens and that you discover during the period of insurance, and 2. any other part of any insured property that is not directly affected but must be removed, damaged or

destroyed to locate the cause of the hidden gradual damage.

The most we will pay during any annual period is: 1. $10,000 for each event, and 2. $30,000 for all events.

The insurer is saying even though the damage found in the bedroom was not visible until they pulled the furniture out, they are saying that because it was not technically hidden within the wall, they would not cover the bedroom wall damage. They may still cover any damage within the wall itself.

Is the insurer correct?

CROSSLEY GATES Assuming the words 'hidden gradual damage' are not specially defined, they will be interpreted based on their dictionary meaning and in the context of the policy.

The definition of hidden is clear; the issue raised by the insurer seems to be whether the definition is to be restricted to damage hidden behind a wall, meaning damage showing on the outside of the wall, but hidden behind furniture is not enough.

The word hidden appears in what is the insuring clause of the extension. Other requirements of the insuring clause such as the need for the damage to be accidental are looked at subjectively through the

insured's eyes. Therefore, applying the same subjective test to the requirement of being hidden is consistent with this.

I also note that the interpretation contended for by the insurer is adding a gloss to the dictionary meaning that is not justified. If the cover is meant to be limited to damage hidden behind a wall only, the insuring clause could easily say so.

Based on the words used in the extension, I don't believe the narrow interpretation used by the insurer is justified. The damage to the wall and beyond was hidden to the insured by the furniture

Do you have a question for our experts?

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June 2022

Ask an Expert

Marine Cargo excess

QUESTION sign anything nor was he told verbally of this when arranging the transport.

I have looked on the company website and it states: a: "...You get specialist insurance cover for your imported vehicles at no cost to you..."; AND b: "..N.B: $500.00 policy excess applies to all claims to be paid by the importer.."

My question is - can the company impose their excess onto their clients, also their website states that the insurance is "at no cost" to the client, which directly conflicts that he must pay the excess, which is a cost relating to the insurance cover.

My client had a vehicle he imported transported to his premises by a transport company.

The vehicle arrived damaged (scratch on bodywork) and he has made a claim against the transport company (The Company) who have notified their insurer.

The company have a $500 excess applying to their insurance Policy that they are telling my client he is liable for. He is disputing this stating he was not told about the excess when he arranged the transport.

The company have responded by advising it is noted on their website. He advises he did not see this and did not agree to accepting any excess, nor did he

PAULINE DAVIES My first question is, did your client hold marine cargo insurance for the import/road transport? If so, he may be better to claim under that policy and leave the cargo insurer to deal with recovery.

Putting that issue to one side though, the Company is liable to your client under Part 5, Subpart 1 of the Contract and Commercial Law Act 2017 (the successor to the Carriage of Goods Act 1979) with the liability limited to $2000 unless different arrangements were entered into that comply with the Act, and since your client was not aware of the "excess" it seems unlikely that this was the case.

What the Company's insurance arrangements are, is irrelevant and it is certainly not permitted under the Act to take this sort of deduction. Your client should therefore be entitled to the cost of repairing the scratch to a maximum of $2000.

A statement on a website is not, of itself, compliant.

Does contents insurance cover a second property?

A client owns a unit in a body corporate with very little contents, and they do not want insurance for these.

They have another property with contents insurance. Would their section 2 liability be covered

QUESTION

under this contents policy if they damaged another unit’s contents at the Body Corp unit where they do not hold contents? For example, leaving a tap on and flooding the contents of the unit downstairs?

CROSSLEY GATES Yes, it probably would.

The liability cover under a contents policy is for liability beyond the premises where the contents insured are located. So the liability cover for the property that has contents insurance may cover liability at the property that has no contents insurance.

Of course, the liability must be of a nature normally covered under section 2 of a contents policy.

If so, visit iNavigator, www.inavigator.co.nz, or the IBANZ website, www.ibanz.co.nz - and let us know. www.covernote.co.nz

39

Ask an Expert

Bottling company hits trouble The insured is a contract bottling company. That means they take other parties’ manufactured product and perform, under contract, the bottling and labelling of that product.

Once the product has been bottled, labelled and packaged it is returned to their customer (the manufacturer of the product). All of the insured's customers are based in New Zealand.

In this example, after the product has been returned to their customer (the manufacturer) it was sold to an overseas buyer. The overseas buyer has picked up on an error in the labelling.

Essentially, the insured has mislabelled the product i.e. they put the orange flavoured labels onto the grapefruit flavoured product. The overseas buyer therefore cannot sell the product and has incurred costs in determining which batches are affected before disposing of the product.

The overseas buyer has held the NZ manufacturer liable for their costs which amount to around $2,000 NZD (this includes $900 of mislabelled product that was disposed of).

The NZ manufacturer has not made an insurance

QUESTION

claim as they deny liability. They have instead passed their buyers' costs onto our insured.

Our insured's insurance company has declined the claim as their GL policy only has a NZ Territory/ Jurisdiction. The insured argues that their contract of service is with a NZ based company and not with an overseas company. Indeed, they have no control over where the product ends up.

Where does liability likely rest and is the insured's insurance company right to decline the claim on the reason they provided?

CROSSLEY GATES Provided indemnity is otherwise available for the labelling error, the property damage occurred in New Zealand so, assuming the NZ manufacturer made no changes to the insured's work prior to export, there would seem to be cover under the policy.

Duty of care dilemma around rogue landlord The Landlord has a meth claim. Insurer has accepted claim and paid a cash amount based upon a cleaning quote.

Insured / Landlord has told us they will be keeping the money and not cleaning the property. The Meth limits are over the legal limits which is known to Landlord and Property Manager.

QUESTION

Landlord has now re-let the property to a new unsuspecting tenant. Insurer has decided to come off risk on hearing this which we would like to do as well.

Whilst clearly the Insured and their Property Manager have a fiduciary care to the new tenant as the insurance brokers to the property, do we?

CROSSLEY GATES Presumably, you are currently the appointed insurance broker for the landlord.

That appointment is an agency agreement at law, whereby the landlord is the principal and you are his/ her agent.

Subject to any express terms of the agency agreement to the contrary, you can terminate it when you wish. Having said that, if no mandatory minimum notice is specified, I would recommend giving a 40

June 2022

reasonable period of at least 7 days notice before terminating the agency agreement. This gives the landlord time to appoint a replacement insurance broker.

Whether an insurance broker owes a duty of care to his/her client's tenant is a more difficult question.

The safest course is for you to terminate the agency.

Once terminated, the question becomes redundant going forward.

Feature

New Auckland HQ for AIG New Zealand A

IG New Zealand is set to move Auckland’s Commercial Bay Precinct into a greener, more sustainable office.

AIG is finalising its relocation to Jarden House from Shortland Street.

The insurance giant said the move optimised its office footprint and supported its goal to achieve net zero greenhouse gas emissions by 2050 or sooner.

Jarden House is a 15 story office building on the corner of Customs and lower Queen Streets.

It has achieved a 5-star rating for environmental sustainability under the New Zealand Green Star system.

AIG New Zealand CEO Toni Ferrier said: “Our new workplace provides employees with a modern, collaborative space in a vibrant location, close to our customers, brokers and other business partners.

“Our sustainability goals and today’s flexible working practices encourage businesses to do more with less. This move gave us the opportunity to rethink our way of working, with our people at the heart of our decision making.”

www.covernote.co.nz

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Professional

College

Professional Development

2022 Update Simon Casford, chief executive

2

022 started with a hiss and a roar as Financial Advisers and Insurance Brokers eye the upcoming compliance requirements around Level 5. The requirement to have completed a significant programme of learning and assessment by early next year has certainly been a key focus for a number of IBANZ members and other FAPs alike.

This has led to a robust start for the College in 2022, as we enrol new students and help existing students complete their studies and certification requirements.

2022 will also see some significant changes at Professional IQ College. From June 1st, Professional IQ College has been owned by Dacreed, a technology company that also owns another training organisation similar to PIQ. Dacreed has developed a Learning Experience Platform, which will gradually replace the ageing platform that Professional IQ College currently utilises.

However, we will carefully transition students across to the new LMS platform over time to minimise any problems and ensuring, for example, that if you are part way through the Core (or Strand) Modules, you can complete these without being shifted to a new platform partway through. We will also be making some changes to streamline and simplify our student portal on the website.

In terms of product offerings, Continuing Professional Development (CPD Webinars and similar) will be delivered through IBANZ directly, while Professional IQ College will continue to offer NZQA and PIQ Qualifications and Short Courses.

How we can help you Professional IQ College will hopefully remain your first port of call for training and qualifications – and particularly for your compliance with the upcoming legislative obligations. We will continue to offer discounts to IBANZ members, and our assessors are experienced industry professionals who understand the insurance industry, to assist you through the process of gaining certified competence. We have all the Strands of NZ Certificate in Financial Services (Version 2) including Life, Disability and Health, General Insurance, Investment and Residential Property Lending, as well as individual Unit Standards to achieve

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June 2022

compliance if you have previously completed Version 1 of the qualification. We have a dedicated Student Liaison Team that can help manage the small issues that inevitably arise with enrolling in an NZQA course, learning how to upload assessments, and the overall assessment process.

How you can help us help you A significant increase in calls in 2022 has thrown us a significant challenge, with Student Liaison missing some phone calls from learners - often because they are already on a call!

As a result, we are reviewing how we can best respond to learners – and implementing tools and technology to improve our ability to respond in a timely fashion.

Professional IQ remains committed to helping the Insurance industry achieve and retain competence and compliance in 2022 and the future.

IBANZ CALENDAR OF EVENTS JUNE 2022 - ALL WEBINARS ARE HELD AT 10.30am - 11.30am June 14 | A round-up of recent Complaints

| Susan Taylor

Susan will talk about the common causes of complaints about insurance brokers, look at some recent cases FSCL has investigated and resolved, and lessons learned from complaints investigated.

June 15 | Promotion. Productivity

| Debbie Mayo-Smith

You will learn quick, easy and free ideas and tweaks to help you improve your sales and marketing. We look at several areas where you can use clever, resourceful and free strategies.

June 17 | Using mBIT & NLP in Business - Multiple Brain Integration Techniques & Neuro Linguistic Programming | Trevor Slater This session will look at how these can affect the successfulness of clients understanding and accepting financial advice June 22 | Client vulnerability - reviewing your policy and processes | Karen Stevens/Andrew Gunn This webinar will cover some developments on the subject of client vulnerabilities, with cases and lessons from other jurisdictions and some resources to assist you in practical policies and procedures for your team.

June 29 | Aggregation and de-aggregation of claims

| Matthew Atkinson

This seminar will review the cases that have considered aggregation clauses and provide tips for their interpretation.

JULY 2022 - ALL WEBINARS ARE HELD AT 10.30am - 11.30am (*except July 28th - 1.00pm - 4.00pm) July 6 | Don't get hacked | Steven Mayo-Smith Just how secure are you and ready to defend yourself and your business against the increasing rate and sophistication of cyberattacks. Understanding the different threats is an important part in protecting yourself. This session will provide you with an understanding of the types of threats and intrusion techniques and the do’s and don’ts of protection.

July 7 | Leadership in the Workplace | Natalie Cutler-Welsh

In this energetic and empowering session, Natalie Cutler-Welsh will cover 4 key areas to focus for effective Leadership in the workplace including: How to have impact as a leader, the power of stepping back, strengths-focussed leadership and confidence vs curiosity.

July 12 | Fidelity Guarantee | Jon Stagg This session will cover general policy coverage & issues as well as types of offending.

July 13 | Unmasking the complexities of a prima facie claim: Scope of cover and the operative clause. | Andrew Gunn/Claire Benjamin Unmasking the complexities of a prima facie claim: Scope of cover and the operative clause.

July 19 | Product efficacy v defective products/workmanship issues | Sophie Pasley In this seminar, Sophie will address issues of interpretation arising where there are issues with an insured’s product that lead to claims under their Public Liability policy.

July 21 | Business Interruption – Importance of cover for Additional Increase in Cost of Working | Mark Anderson BI is more than just the insurance of Gross Profit. Cover is automatically provided for Increased Costs as part of the Gross Profit item. But there are limitations to what can be claimed under this item – often referred to as Item 1(b).

July 28* | Marine Workshop with ICNZ | Speakers and venue to be confirmed More details to come.

AUGUST 2022 - ALL WEBINARS ARE HELD AT 10.30am - 11.30am August 9 | The impact of being complained about | Trevor Slater In this webinar the IFSO Scheme presenters will discuss the workplace and emotional impacts on you, the adviser, or complaints personnel may experience when facing a complaint.

August 11 | Faulty workmanship exclusions | Emma Gabor This session will cover application in material damage and liability policies, with examples.

August 18 | Communication skills & body language | Natalie Cutler-Welsh In this session you will learn in depth about the power and impact of your body language and how to recognise it in others. Areas we will cover also include: Self awareness and speaking habits. How to read the room and connect with the four personality types.

August 24 | Business Interruption – Common problems, pre-loss & post loss – & how to minimise or eliminate these | Mark Anderson It is often only when a loss occurs that a broker finds out how good their clients BI policy is. It is too late after a loss to retrospectively change the cover. You may not have seen your client’s financial accounts.

Below please find a list of proposed topics which we expect to provide this year: Others will be added as presenters come on board • Agriculture - Crops

• Insuring Clauses and Exclusions

• Reasonable Care

www.covernote.co.nz

43

IBANZ Board Roger Abel

Tony Bridgman

Rothbury Group Limited PO Box 1596 Shortland Street Auckland 1140 Mob: 021 952 230 roger.abel@rothbury.co.nz

(Vice President)

Duane Duggan

(Immediate Past President)

Head of Insurance Legal Crombie Lockwood (NZ) Ltd PO Box 91747 Victoria Street West, Auckland Tel: 09 357 4805 Mob: 021 833 286 duane.duggan@crombielockwood.co.nz

Angus McCullough

General Manager Marketing & Chief Officer Aon New Zealand PO Box 1184 Shortland Street, Auckland 1140 Tel: 09 362 9059 angus.mccullough@aon.com

Neil Cousins

Jill Comley-Forbes

Executive Director Marsh Ltd PO Box 2221 Auckland 1140 Tel: 09 928 3015 Mob: 021 873 399 tony.j.bridgman@marsh.com

Broker Services Manager Steadfast NZ Ltd PO Box 180 Shortland Street Auckland 1140 Tel: 09 309 7942 Mob: 021 377 942 neilc@steadfastnz.nz

Samuel Kerr

Ramesh Mavani

Jo Mason

Simon Ross

James Shearing

Simon Moss

Karen Scard

(President)

Insurance Broker SHARE PO Box 305415 Triton Plaza Auckland 0757 Tel: 09 476 1670 Mob: 021 980 435 sam.kerr@sharenz.com

Southern Regional Manager Willis New Zealand Ltd PO Box 2220 Christchurch 8140 Tel: 03 339 5021 Mob: 021909124 simon.ross@willistowerswatson.com

Manager Insurance People (Fire & General) Ltd PO Box 47218 Ponsonby, Auckland 1144 Tel: 09 360 5616 Mob: 021 078 3465 ramesh.mavani@ insurancepeople.co.nz

Chief Broking Officer BrokerWeb Risk Services Limited PO Box 7264 Sydenham Christchurch 8240 Tel: 03 348 9802 Mob: 027 451 8098 jill.comley-forbes@bwrs.co.nz (Vice President)

CEO NZ Brokers Management Ltd PO Box 334012 Sunnynook, North Shore City Auckland 0743 Tel: 09 869 2785 jom@nzbrokers.co.nz

Director Affiliated Insurance Brokers Ltd PO Box 22221 Khandallah, Wellington 6441 Tel: 04 479 8451 Mob: 027 2460046 james@affiliated.nz

IBANZ Mel Gorham

Chief Executive IBANZ DDI: 09 306 1734 Mob: 021 0852 5568 mel@ibanz.co.nz

Toll free: 0800 306 173

General Manager DDI: 09 306 1733 Mob: 027 270 5774 simon@ibanz.co.nz

Administration & Accounts Manager DDI: 09 306 1738 karen@ibanz.co.nz

www.ibanz.co.nz

The way the world communicates is changing. discover covernote live and keep up-to-date with live news and articles from IBANZ, its members and the industry

Physical address:

Unit 4D, 2B William Pickering Drive, Rosedale, Auckland 0632

Mailing address:

PO Box 302504, North Harbour, Auckland 0751

WANT YOUR VERY OWN COPY OF COVERNOTE?

June 2022

Each issue of CoverNote Insuranc e Contracts Bill: is packed with vital what you shou ld know information, news, commentry and advice for the insurance industry from experts within the industry. To keep abreast of all the issues affecting New Zealand’s insurance broking industry just email info@ibanz.co.nz CoFi bill draw s closer:

the good and

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CoverNote is published quarterly by IBANZ, the Insurance Brokers Association of New Zealand.

All correspondence should be addressed to: CoverNote, PO Box 33-1630, Takapuna, Auckland.

www.ibanz.co.nz

IBANZ CORPORATE COMPANY LIST

Abbott Group

Christchurch

Insurance Design Limited

Warkworth

Abraham & Associates Ltd

Christchurch

Insurance People (Fire & General) Limited

Auckland

Adams Trimmer Insurance 1992 Ltd

Whangarei

Insure 247 Ltd

Auckland

Advance Insurance Services Ltd

Paeroa

JRI Limited

New Plymouth

Affiliated Insurance Brokers Ltd

Wellington

Lockton Companies NZ Limited Partnership

Auckland

AIB Group Insurance Ltd

Lower Hutt

Luxor Insurance Brokers Ltd

Auckland

AIM Associates Ltd

Auckland

Malcolm Flowers Insurances Ltd

Taupo

Albany Insurance Services Ltd

Albany Village

Marsh Ltd

Auckland

Amicus Brokers Ltd

Christchurch

McDonald Everest Insurance Brokers Ltd

New Plymouth

Aon New Zealand

Auckland

Moneybox GI Limited

Wellington

Apex General Ltd

Auckland

Multisure Ltd

Auckland

Atlas Insurance Brokers Ltd

Christchurch

MW Insurance

Auckland

Austinsure Ltd

North Shore City

Nelson Marlborough Insurance Brokers Ltd (NIB) Nelson

Avon Insurance Brokers

Christchurch

Neville Newcomb Insurance Brokers Ltd

Auckland

Baileys Insurance Brokers Ltd

Auckland

Northco Insurance Brokers Ltd

Masterton

Bay Insurance Brokers Ltd

Tauranga

Northcrest Insurance Brokers Ltd

Auckland

BMS Risk Solutions Limited

Christchurch

O'Connor Warren Insurance Brokers

Tauranga

Bridges Insurance Services Limited

Hamilton

OFS Insurance Brokers Ltd

Dunedin

BrokerWeb Risk Services Limited

Auckland

Omni Fire & General Ltd

Auckland

Builtin Insurance Brokers Limited

Tauranga

Paramount Insurance Agencies Ltd

Auckland

Cambridge Insurance Brokers Ltd

Cambridge

Partridge Advisory Limited

Auckland

Capital Risk Solutions Limited

Wellington

Paterson & Co NZ Ltd

Auckland

Cartwrights Ltd

Ashburton

Penberthy Insurance Ltd

Auckland

Certus Insurance Brokers NZ Ltd

Auckland

PIC Insurance Brokers Ltd

Manukau

Coast Insurance

Whangaparaoa

Primesure Brokers Ltd

Auckland

Commercial & Rural Insurance Brokers Ltd

Alexandra

Property and Commercial Insurance Brokers

Feilding

Crème Insurance

Auckland

Provincial Insurance Brokers Limited

Masterton

Crombie Lockwood (NZ) Ltd

Auckland

PSC Connect NZ Limited

Auckland

Dawson Insurance Brokers (Rotorua) Ltd

Rotorua

RMA General Ltd

Warkworth

Emerre & Hathaway Insurances Limited

Gisborne

Rothbury Group Ltd

Auckland

FG Insurance Services

Gisborne

Runacres Insurance Ltd

Christchurch

Frank Risk Management

Hamilton

SHARE

Auckland

FundAGroup Insurance Brokers Limited

Auckland

Sit & Blake Limited

Auckland

Grayson & Associates Ltd

Auckland

South Pacific Insurance Brokers Ltd

Auckland

Gregan & Company Ltd

Papakura

Sweeney Townsend & Associates Ltd

Rotorua

GSI Insurance Brokers

Waitakere

Thames Valley Insurance Ltd

Thames

GYB Insurance Brokers Ltd

Lower Hutt

The Advisers for insurance

New Plymouth

Hazlett Insurance Brokers Ltd

Christchurch

Thorner General Insurances Ltd

Upper Hutt

Honan Insurance Group (NZ) Ltd

Auckland

Towes Insurance Brokers Ltd

Te Aroha

Hood Insurance Brokers NZ Ltd

Auckland

Trevor Sutcliffe Insurance Ltd

Hamilton

Hurford Parker Insurance Brokers Ltd

Hastings

Vercoe Insurance Brokers Ltd

Morrinsville

Hutchison Rodway Ltd

Auckland

Vision Insurance (S.I.) Ltd

Ashburton

ICIB Limited

Auckland

Wallace McLean Ltd

Auckland

Ingerson Insurances Ltd

Wellington

Wanganui Insurance Brokers Ltd

Wanganui

Insurance Advisernet NZ Ltd

Auckland

Willis Towers Watson

Auckland

Insurance Brokers Alliance Ltd

Invercargill

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