www.ibanz.co.nz September 2022
IAG outlines a three-step natural hazard plan
The future of insuring greenhouse gas emitters
constraintsCapacity in New Zealand
While these changes appear to be incremental at this stage they may ultimately lead to a loss of access to insurance if the risk becomes intolerable to insurers. Inevitability or a heightened likelihood and/or severity of loss will impact insurer tolerance.
Welcome
Isolation of thought and decisions is only likely to intensify the issues, particularly for those most vulnerable.
Strategic thought and decisions from central government with be a necessity, as will engaging in transparent and inclusive consultation.
Another example is life insurance which is influenced by factors including medical history, smoking, drinking and age.As insurers collect more data about risks, they use that
Welcome to the spring edition
There is a need to consider alternate means for risk management, such as defences to minimise risks.
It is not a new concept. Most are aware that motor vehicle premiums are impacted by where you live, driver experience, a poor claims record and driving offences.
In this quarter our lead story focuses on insurance capacity, availability, and cost.
In recent years there have been several articles written about risk-based pricing and the impact it has on insurance premiums.
data to inform their modelling, risk appetite and cost of offered covers.
Many of us rely on the availability and affordability of insurance, particularly if a loan is needed to purchase a house, building or other assets. There are few who can tolerate the loss of that asset without it.
Local government must properly assess the prudence of issuing consents in light of material risks and exposures.
In the current market, the availability of earthquake capacity is becoming increasingly constrained. Wellington bears the brunt of this issue as increasing inflation impacts not only the premium but sees insurers taking decisions to write down the percentage and support of some risks theyWithinsure.increased
Landowners or potential landowners need to critically review hazards associated with the property as well as its suitability for the development or use they have in mind.
Keep safe
Melanie Gorham CEO, IBANZ
Regular stories in our press quote amber and red weather warnings, slips, flooding, and evacuations.
The potential for insurers to retreat from offering insurance is something to be aware of.
Whether government, council, business or individual, the potential severity of this means that we will all likely have our part to play in an integrated solution.
As most of you will have experienced first-hand, wild weather has been a feature of this winter.
In New Zealand, insurance is typically seen as the solution to weather events, available to all who wish to purchase it. There are however mounting concerns this may not always be the case.
The potential for insurance retreat has been contemplated as part of the recent focus on the National Adaptation Plan (NAP). Initially, it leads to higher premiums or reduced cover (lower limits, higher excesses, or narrower wordings).
concern over climate change and more frequent or significant weather events, a light is being shone on the ongoing cost and availability of insurance covering flood risk.
Climate change is global. While Australia and New Zealand grapple with too much water, others in the northern hemisphere are struggling with not enough.
If not already happening, those exposed to flood plains, rivers or coasts are likely to start experiencing rising premium costs as insurers put greater scrutiny to the risks they are being asked to insure.
Auckland dam levels at the end of July sat at 99%, up from 59% for the two previous years. In a recent news story, 300mm of rain was forecast to fall on parts of the South Island within a 12-hour period.
enquiries should be made
27. Opinion
Melanie
WANT YOUR VERY OWN COPY OF COVENOTE? See page 44 for details on how you can have your very own copy delivered directly to your door... HOT OFF THE PRESS! www.ibanz.co.nz September2022 constraintsCapacityin New Zealand The future of insuringgreenhouse gas emitters IAG outlines a three-stepnatural hazard plan Regulars Cover 1. Welcome CoverNoteto 18. Humans of NZI 38. Ask an Expert 43. IBANZ Calendar of Events 44. IBANZ Contacts 4. COVER STORY Capacity constraints in New Zealand Features 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. Produced for IBANZ by: Benefitz, 5-11 Parkway Drive, Mairangi Bay, Auckland 0632. PO Box 33-1630 Takapuna. 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. Advertising/Editorial: Robert Johnson, Benefitz Telephone 09 477 4702, Mobile 027 4970 712, Email: robert@benefitz.co.nz Design/Production: Craig Burkett, Benefitz Imaging: CTP by Benefitz 3. WTW’s Garvey lands regional role 14. The future of gasgreenhouseinsuringemitters 41. Suncorp NZ profits fall amid higher natural hazard costs 22. Vero insurancerelatedrevealsresearchCovidSMEgap Keegan Alexander: on the ActAmendmentofMarketsFinancial(ConductInstitutions)2022 8. IAG outlines a plannaturalthree-stephazard 20. AIG New newappointsZealandchair 28. Fight the flight: how to navigate the andResignationGreatretaintalent 30. IAG AllianceInsuranceNet-Zerojoins 37. AALong-servingbosstoretire 10. COVID-19 and travel backtentativeInsurersinsurance:takestepsintothemarket 24. Why IAG created a collision repair service ISSN 2815-9268
IBANZ to: Gorham, Chief Executive, IBANZ. Email: mel@ibanz.co.nz
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3www.covernote.co.nz Feature The Future is now If you want the free dom and flexibility to run your own G eneral or Life Insuranc e Advis ory Business, then sp eak to the team at PSC Conne ct NZ. B eing part of PSC Conne ct comes with a range of b enefits, including: • Buying p ower of the PSC Group which has a gross premium of $2bn • Full ad ministrative and c omplianc e supp ort • Ac c ess to all major markets and sp e cialist underwriting agencies including Lloyds • Agile op erating systems that will allow you to work from Home, Offic e or anywhere • Assistanc e with hard to plac e risks • Pro duct and Professional training • Claims and Marketing supp ort If you want the free dom and flexibility to run your own G eneral or Life Insuranc e Advis ory Business, then sp eak to the team at PSC Conne ct NZ. B eing part of PSC Conne a range of b enefits, including: • Buying p ower of the PSC Group which has a gross premium of $2bn • Full ad ministrative and omplianc e supp ort • Ac c ess to markets and sp e cialist agencies including Lloyds • Agile op erating systems that will allow you to work from Home, Offic e or anywhere • Assistanc e with hard to plac e risks • Pro duct and Professional training • Claims and Marketing supp ort BE YOUR OW N BOSS BE YOUR OW N BOSS Proud members of: For confidential enquiries, call: Dave Penfold 021 409 400 dpenfold@pscconnect.co.nz For confidential enquiries, call: St eve Morris 021 905 911 steve@pscconnectlife.co.nz
Garvey will take on the role in addition to his current job leading WTW’s Australasia Financial Solutions business.
Lee Garvey has been appointed as Willis Towers Watson’s regional head of financial solutions for the Asia-Pacific.
WTW’s Garvey lands regional role
He replaces Fabien Conderanne who has been appointed to run WTW’s Financial Solutions business in Europe.Garvey has worked for all three major insurance brokers and specialises in structured credit and political risk insurance, with experience working for large corporates and investment banks, alternative investment funds and private equity houses. He will report to Stuart Ashworth, head of international, financial solutions, based in London.
Ashworth said: “During this period of geopolitical upheaval, we believe our clients need our services more than ever. We have ambitious plans for Asia Pacific and this appointment reflects our commitment to understanding each of our client’s businesses, and helping them address the many risks that they face.”
Based in Singapore, he will oversee the development of credit and non-payment insurance, as well as political risk and crisis management insurance products for organisations in the region.
constraintsCapacity in New Zealand
The appetite for taking on additional risk is therefore limited, with insurers taking stock of conditions in both New Zealand and in overseas markets in a challenging environment in which quality advice to clients has become more important than ever.
An increase in claims, the effects of climate change, inflation and rising premiums are driving change in the insurance industry as underwriters tweak their models to ensure they are fit for purpose in a changing world.
Claims, climate change, inflation and regulation have contributed to shrinking capacity and rising premiums, writes Angela Cuming
“We know that higher insurance prices attract investment and therefore access to
Cover Story 4 September 2022
Paul Munton, Rothbury Insurance Brokers executive general manager for broking and branches, points towards several factors that have contributed to capacity constraints in the domestic insurance market, noting that the commitment and cost of capital to underwrite risk is “generally determined by assessment of prevailing economic conditions and environmental factors”.
The industry is also dealing with rising premiums, despite the recent EQC cap changes. Since the changes were announced, insurers have faced double-digit building inflation and rising reinsurance costs because of overseas extreme weather events like floods and
“Wewildfires.areseeing a rise in premiums because of the pressure on accumulations and its impact on competition,” says Warner. “New Zealand is a small market, only becoming smaller due to this. In addition, more frequent loss-incurring weather events are impacting insurers’ ability to deliver consistent financial results, so rates continue to be adjusted.”
Megan Warner, commercial team keader at Marsh, says shrinking capacity is due to inflation putting pressure on insurers’ regional accumulations. “There is only so much capacity in the market and inflation has caused insurers to use more capacity than perhaps they anticipated they would need,” she says. “This is presenting itself by insurers not being able to maintain line size, or percentage share, on increased values and co-insurers being needed to fill the gap.”
capital. However, insurance markets are also significantly influenced by the claims experience and to reduce volatility, insurers and reinsurers determine their own level of comfort,” says Munton. “They will cap their exposure to protect their balance sheet, investors, and regulators and therefore sustainability. “
The insurance market is also greatly impacted by global events and the response of international insurance and reinsurance markets, he adds.
Rising premiums should be of little surprise, says Grafton, who says that even Treasury’s own analysis about the EQC cap changes showed that most residential properties would
“Capacity will be more of an issue for more vulnerable structures in higher risk areas and loss frequency — that is commercial property fires and weather losses such as flood and storm damage on residential and commercial property and motor - is increasing,” he says.
“Insurers are now finding that inflation is increasing sums insured significantly (some as high as 30%), due to rebuilding costs like material and labour. Construction time frames are extended, and this increases business interruption costs as well.”
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Tim Grafton, chief executive of the Insurance Council Te Kāhui Inihua o Aotearoa, says costs are impacting all lines of insurance, with capacity issues pronounced in certain sectors.
Insurers may be more discerning about their appetite for accepting additional risks in this environment, adds Grafton says. “Insurers are also finding that the cost of purchasing reinsurance, typically in the lower layers to act as buffer for these high frequency weather events, is now increasingly costly.”
“We are in a very challenging market and clients now more than ever need personal service and quality advice about their insurance,” says
"This highlights the importance of insurance brokers to take a closer look at every aspect of the clients’ business and its market to identify the risks and ensure the client has the appropriate coverage,” he says.
end up paying more in their total premiums.“Thisisbecause most New Zealanders live in relatively lower risk seismic areas and will pay a $552 including GST EQC levy, a $207 increase, which exceeds what private insurers were charging for that risk before the cap change,” says Grafton.
“Generally,Munton.
“Today, access to appropriate markets and capacity are an escalating need. We all recognise the challenge of affordability; however, no one wants insurance more than someone who needs it and can’t access it at any price. Know your client, know your market, and know your worth.”
We are in a very challenging market and clients now more than ever need personal service and quality advice about their insurance.
flood-related claims in Australia alone having already reached AU$7 billion. So, while some people in high natural hazard zones should expect the EQC component only of their total premium to fall, there are a host of other factors that, combined, might reasonably be expected to overtake that.”When it came to earthquake cover, lower-risk areas like Auckland may start to see a rise in premiums, says Munton.“Toensure the affordability and sustainability of earthquake cover in the high seismic areas most exposed
Given current market conditions, insurers are seeking to limit the exposure to natural catastrophe due to the reduction in reinsurance capacity, escalating price of property catastrophe reinsurance, and increasing frequency and severity of losses, says Munton.
Given that 2021 set a record for insurance claims from extreme weather events – the total amount was $324 million – it was to be expected that loss-incurring weather events would continue to have an impact on premiums in 2022 and beyond, says Grafton.
Grafton says supply chain issues
“For the first six months of 2022, these claims totalled $198.5 million and we are yet to have any numbers for the three extreme weather events for which we’ve collected data for in July. All this has an impact in terms of overall claims being met locally by insurers.”Thereinsurance market is also hardening on the back of large climate-related losses globally, adds Grafton. “Closer to home, 2021 was another big year for climate-related claims in Australia. Again, 2022 is shaping up to be a bad one too with
“Rather than purchase additional reinsurance at a higher premium, many underwriters have set their own cap on their portfolio aggregate exposure. Typically, they are setting a small percentage increase for sum insured increases for existing policies and reducing their appetite to new business. General inflationary pressures and supply chain disruption combined with escalating property valuations can exceed the insurers comfort or risk appetite.
So, what does shrinking capacity and rising premiums mean for insurance brokers in general?
and a labour shortage had impacted the length it took to fix a home, adding further to insurers’ costs in recent times.
“Overall, the cap changes have prompted a review by the insurers of their earthquake pricing, and they too will aim to balance out the cost of earthquake insurance across the country. Each insurer will determine their pricing strategy in response to the EQC change and unfortunately, there is no ‘one size fits all” approach.”
insurance has been available on demand, and perceived as being “of right”, but the world is changing. Insurance is not a commodity, and for far too long price has been the primary focus rather than the nuances of coverage. Poor choices in terms of markets and coverage will have a more detrimental impact than the price point at claims time.”
The effect of climate change is also becoming increasingly clear.
6 September 2022 Cover Story
Paul Munton, Rothbury Insurance Brokers executive general manager for broking and branches
to earthquakes, insurers are now looking to redistribute some of these costs to areas where there is lower earthquake risk, like Auckland and other parts of New Zealand, to help share the load,” he Earthquake-pronesays.areas such as Wellington, Canterbury and Hawkes Bay have to date carried a disproportionate share of the Earthquake pricing and this is set to change with a redistribution of cost across all areas, he says.
“This is not a new phenomenon; many property reinsurance treaties previously contained a “cession limit” clause restricting the amount of risk an insurer could underwrite. Once exceeded, one approach adopted was a “one-on, one off” approach. One way to overcome the challenge faced with such limitations is to allow another insurer to co-insure the risk to remain within their own internal limits and appetite. “
“In addition to this, all areas of New Zealand, including the higher seismic risks areas, will see the impacts of double-digit building inflation, increased costs due to headline inflation, and reinsurance costs.”
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already having serious impacts on the lives of New Zealanders through more frequent and intense storms, floods, droughts, wildfires and, in time, rising sea levels.
As floods hammered regions including Nelson and the Far North in August, IAG fired a warning about climate change and said practical, collaborative steps needed to be taken.IAG New Zealand CEO Amanda Whiting says: “Climate change is a critical issue for our country and it’s
8 September 2022 Feature
in two households, we see first-hand the devastating impact flooding has on New Zealanders and the risk it poses to people’s lives and general wellbeing.“Ourjob is to provide insurance to support New Zealanders when things go wrong, and we are committed to being here to help people recover. But insurance is only one component of the solution, and we also know there is much more that needs to be done to keep New Zealanders safe from the impacts of flooding.
IAG outlines a three-step natural hazard plan
Insurance giant IAG has unveiled a three-step plan to try and reduce flood risk in New Zealand’s most exposed communities, following a series of major events.
“The most important thing we can do is ensure people are not placed in harm’s way and do not suffer the loss and disruption caused by a flood event. Avoiding the impact on lives and people’s wellbeing must be the priority.“AsNew Zealand’s largest general insurer, with a relationship with one
2. Implement a National Policy Statement to cease development in flood-prone locations
“First, we need to create a common understanding of which flood-prone locations are most in need of support to reduce the risk they face.
“Reducing the impacts of flooding is a large and complex challenge, but not an impossible one. There are practical, concrete actions we can take to increase our resilience.
Whiting said the steps could help to protect communities and future generations of New Zealanders.
“Second, we need to stop building in flood-prone locations, so the problem doesn’t get worse.
developed by the Ministry for the Environment | Manatū Mō Te Taiao working alongside local government and other stakeholders to develop a statement that requires councils to avoid new development, or intensification of existing development, within locations that are exposed to flooding that may occur more frequently than one in 50-years.”
“Reducing the impact of flooding through better planning and infrastructure investment will help us to avoid a situation in the future where low-lying communities are more frequently disrupted by floods. If this continues, those homes and businesses that are the most exposed to flooding will find it difficult to obtain or afford insurance.
This would best be achieved through a National Policy Statement
3. Establish a national programme of investment in flood protection
“We need to develop and carry out a programme to improve flood defences in our most at-risk communities. This would involve the New Zealand Infrastructure Commission | Te Waihanga working with Treasury | Te Tai Ōhanga, local government and other stakeholders to develop a business case and a programme of work for investment in flood protection infrastructure for priority flood-prone locations.”
“These are practical steps that will lead to a sensible and targeted reduction of flood risk for the communities that most need it,” she said. “IAG is prepared to play its part in each of these steps.
“For all New Zealanders, this is a future case scenario we resolutely want to
“Failureavoid.toproperly plan and invest will not only make insurance harder to get and more expensive over time, but also cause wider and more devastating impacts on the physical and financial wellbeing of our most flood-prone communities.
“To keep people safe, we need to think smarter. We need greater investment in infrastructure and other solutions that either protect people or move them out of harm’s way.”
“The most sensible course of action is to stop making this problem worse and better protect the one percent of New Zealand homes that are most exposed to flooding. New Zealand’s traditional focus on response and recovery must expand to place much more emphasis on prevention and risk“Thereduction.National Adaptation Plan was a great start in the response to the impacts of climate change and includes a wide range of activity that will help grow New Zealand’s ability to adapt. But we need to be much more specific, targeted and urgent about the steps we will take to reduce the risk of flooding.
“IAG is committed to working with central and local government on these initiatives to ensure the safety and security of our fellow New Zealanders.”
IAG’s three steps are:
“This can be done through a formal project between central and local government, and other stakeholders to identify and prioritise flood-prone locations. This project needs to take into account current exposure, quality of current flood protections, the financial position of councils, the deprivation and resilience of communities, the availability and affordability of insurance and lending, as well as current flood protection investment plans and projects.”
1. A joint government and private sector project to build a common understanding of priority flood prone communities
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“Development and investment decisions are leading to more people living in flood-prone locations, where they face growing risks due to the impacts of our changing climate on rainfall and sea level. The last two years alone have seen 10 major floods with insured losses of around $400 million, plus wider economic and social costs that extend into the billions.“Tragically, weather events in New Zealand have also resulted in serious injury and loss of life.
10 September 2022 Feature
When travel insurers first became aware of the COVID-19 pandemic, they reacted cautiously by setting dates after which they were not prepared to cover COVID-19 related losses, on the basis that travellers who booked holidays after those dates did so knowing of the pandemic. Insurers were understandably nervous of a risk that was difficult to value at first and affected large numbers of travellers, so they imposed broad exclusions for COVID-19 losses.
Insurers’ initial responses to COVID-19
Andrew Horne, partner, MinterEllisonRuddWatts, co-authored with Siobhan Pike, a law clerk in the firm’s Litigation and Dispute Resolution team.
As the world opens up, many Kiwis are planning longoverdue overseas getaways. The decreased risks of severe COVID-19 infection, thanks in large part to vaccine efficacy and evolving variants, have emboldened many to travel once again. But overseas hospitalisation and associated expenses are not the only way COVID-19 can derail travel plans. Testing positive or becoming a household contact of a positive case prior to departure may also create a big dent in travellers’ wallets if their flights accommodationand are non-refundable.
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How are travel insurers responding to these risks?
COVID-19 and travel insurance: Insurers backtentativetakestepsintothemarket
As mass vaccination and the prevalence of less harmful variants of COVID-19 turn what was once a
With travel insurance being limited for COVID-19 expenses, some travellers may question its necessity. We strongly recommend that all travellers obtain the most comprehensive travel insurance policy they can afford. With the constantly evolving COVID-19 landscape, travellers should be prepared, and the right travel insurance policy can eliminate or significantly reduce major expenses.
Where possible, paying a bit extra for flexible or refundable flights, accommodation or activities can ensure that, where plans are delayed or cancelled due to COVID-19, any financial loss is kept to a minimum. Preparation is more important than ever to prevent a financial headache and the stress of being uninsured for a loss and allow travellers to enjoy their travel without worrying about COVID-19.
Most insurers now provide cover for medical costs incurred as a result of COVID-19. Insurers appear to be comfortable that the risk of serious illness resulting in substantial medical bills is now both sufficiently low and predictable to be insurable.
Even for the fully vaccinated traveller, cover for COVID-19 expenses is not necessarily a given. Most travel insurance policies only provide COVID-19 benefits if the policyholder is travelling to a destination with a SafeTravel travel advisory level of 1 or 2 (low to moderate risk). COVID-19 cover will be denied to destinations with a higher travel advisory level under most policies. This appears to be the case even if the policyholder tests positive before their journey and is unable to travel, so that the highrisk nature of the destination would have made no difference.
travelling companion are diagnosed with COVID-19 before they leave, and travel plans must be cancelled as a result; and
Some travel insurance policies only provide coverage if the policyholder or a travelling companion is diagnosed with COVID-19 and must alter their travel plans to self-isolate and recover. Under other policies, but not all, being obliged to self-isolate as a household contact will also trigger cover.Importantly,
• costs to change travel arrangements if a traveller or a relevant person is diagnosed with COVID-19 while away so that the trip is cut short.
Shop around
Limited cover for travel disruption costs
For some people
12 September 2022
While insurers have been more cautious about insuring costs and losses resulting from travel disruption caused by a COVID-19 illness or positive test, travel insurance policies are increasingly offering cover for events relating to COVID-19 that impact travel plans as well as medical costs. These additional costs include:•costs to change travel arrangements if a traveller or another relevant person such as a family member or
some travel insurance policies only cover COVID-19 expenses for fully vaccinated travellers. This requires the policyholder to have received an approved COVID-19 vaccine at the specified dosage and consistently with New Zealand boosters.recommendations,governmentincluding
Tips for travellers before they book Is travel insurance still worth it?
Feature threat to life and health to a minor inconvenience for most people, insurers have become less concerned about their exposure to substantial medical costs for hospitalisation. Insurers remain concerned, however, about losses that occur when people cannot travel because of government-imposed lockdowns or because they or a travelling companion test positive for COVID-19.
Plan carefully
for medical expenses resulting from COVID-19 is normally offered to the usual limits, where limits of NZD1 million or unlimited cover are not uncommon. Some, however, may still be restrictive.
What COVID-19 costs are travel insurers now covering?
To some places
All travel insurance policies are different. It is important for travellers to shop around to find the deal that provides maximum coverage. For those planning a family holiday, finding a policy with highest possible cover limit will be essential to cover multiple flights and higher accommodation fees.
Medical costs
Most policies, however, continue to exclude cover for travel to countries that are on the New Zealand Government’s ‘do not travel’ list reflecting a high risk of COVID-19, where travel is banned, and for multi-night cruises (some offer cruise extensions). Most policies do not offer cover where the policy was purchased within a specified period of travel, such as 21 days, to ensure that the traveller does not already have COVID-19 when they take out the policy and will still be testing positive when they are due to Coveragetravel.
However, travel insurance typically provides much more limited cover for costs caused by delays and disruptions associated with COVID-19 than from other causes. Most travel insurance policies provide coverage of only NZD5,000 for these costs. For an international holiday requiring cancellation and rescheduling of flights, accommodation, and activities, these modest cover limits can easily be exceeded.
When considering different travel insurance policies, travellers should carefully check available policies to determine exactly what they cover. They should make sure they understand who will be covered in the event of delayed or cancelled travel and read the exclusions carefully.
COVID-19 and its effects can be unpredictable, and it pays to be prepared. Planning holidays in advance increases the time travellers have to research and purchase appropriate travel insurance and ensure that they are complying with the requirements for cover. This includes making sure all policyholders meet vaccination requirements. It is also essential to purchase travel insurance well in advance – often at least 21 days before travelling – to ensure that COVID-19 cover requirements are met.
vero.co.nz/overandabove *TNS Intermediated Survey Dec 21 48%* of brokers and advisers are actively seeking this. For more information on our future focused set of initiatives, tools, insights and content check out vero.co.nz/overandabove or ask your Vero contact for more details.
We that ongoing industry
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are committed to helping our broker and adviser partners succeed, now and in the future. We know
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The future of insuring greenhouse gas emitters
14 September 2022 Feature
Andrew Horne and Jade Yu, MinterEllisonRuddWatts
In 2021, the UN convened a Net-Zero Insurance Alliance of insurers and reinsurers representing more than 11% of premium values globally. Its members are a ‘who’s who’ of global names such as AXA, Allianz, Aviva, Zurich, IAG, Munich Re and Swiss Re. They have committed to transition their insurance and reinsurance underwriting portfolios to net-zero greenhouse gas emissions by 2050. While this remains only a small proportion of the global industry and the target date is decades in the future, it is an indication that the insurance industry is committing to move away from insuring carbon intensive businesses.
Reduced or withdrawn cover for large emitters
Large greenhouse gas-emitting industries are increasingly reporting difficulty in persuading insurers to cover their risks. This is not because of a concern that those industries will suffer insured losses as a result of the effects of climate change, such as storms and flooding, but because insurers are beginning to respond to activists’ demands that they recognise a wider responsibility not to support businesses that contribute to climate change.
• Increasing reluctance to invest their reserves in those industries, further denying them essential equity and debt funding
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The Prince stopped short of mentioning any specific ways in which the insurance industry might help guarantee the survival of the natural world. The focus of his brief speech was on assisting with new technologies rather than working against those that contribute to climate change.
• Reducing or withdrawing insurance cover for greenhouse gas emitting industries, forcing them to pay higher premiums as competition decreases, or forcing them to self-insure, increasing their risk and thereby reducing their ability to raise equity and debt funding
In a recent speech to Lloyd's of London, the Prince of Wales told the insurance market “We have never needed you more than we need you today”, urging insurers to do their part to help with the transition to a low carbon world. He said that there would need to be a seismic shift in investment to new technologies, and that “if there is one insurance policy we need, it’s the one that guarantees the survival of the natural systems that sustain all life on earth.”
• Policy clauses targeting greenhouse gas emissions reductions
The language used is strident: the chief executive of AXA, Thomas Buberl, is reported to have said that the goal is to have “all the insurers applying a methodology to only underwrite
Increasingly, however, others are less circumspect. Climate change activists, frustrated at a lack of progress from targeting large emitters directly, are targeting insurers and other financial services firms that provide services to emitters. Large financial services firms are generally more susceptible to threats to their brand and other societal pressures than large emitters and they are not wholly reliant upon carbon-intensive industries for their profits.Wesee three key areas in which the insurance industry may play a role in reducing climate change:
Whether these market changes will ultimately drive better business behaviour remains to be seen. One possible development could be a growth in captive insurance for large-scale emitters, although the reinsurance market may in time come to respond to the same pressures as the primary market.
Importantly, large insurers, because of their need for substantial financial reserves to enable them to pay claims, are significant investors in the bond and equity markets as well as providers of insurance services. This means that greenhouse gas emitting businesses face a doublewhammy – at the same time insurers are increasingly reluctant to insure them, their sources of finance, which provide a buffer against losses and permit them to self-insure to some extent, are also becoming constrained.Asmajorparticipants in the equity markets, the spotlight will be on insurers to ensure that they are investing appropriately and consistently with their advertised environmental, social and governance targets.
Insurers bear a heavy responsibility. While they have an opportunity to lead meaningful change, they will need to tread carefully and consider the risks that their actions will have unintended consequences.
• incentivising insureds to mitigate their climate risk and for insured’s directors and officers to comply with their duties by reducing insurance premiums for insureds that meet agreed disclosure standards regarding climate related financial risks (Archie’s Clause).
• a coverage extension to cover any pending climate change litigation on the condition that the insured discloses its net zero targets and climate risk exposure (Cassie’s clause);
The insurance industry is also beginning to experience a push for mandatory disclosure of climaterelated information. Insurers are beginning to request disclosure of climate-related risk information
Not only coal miners and coal consumers will feel the pinch. Other large emitting industries such as aviation, shipping, cement, steel, oil and gas are likely to experience rejection from insurers in time. Methane-intensive agriculture such as dairy farming may also experience
The effect of all this is likely to be that large emitters will increasingly become uninsurable at commercial rates, which will force some to self-insure. This will result in those industries becoming operationally riskier, making them less attractive to lenders and investors. This will drive down their market values, resulting in investor losses (or lower profits) and reduce their ability to grow and maintain their businesses.
Reduced investment
companies directed toward climate transition and not to the dark ages of burning coal.”
New policy obligations
• explicitly excluding cover for climate liability, costs and losses where the insured fails to meet its greenhouse gas emissions reduction targets (Conor’s clause); or
16 September 2022 Feature
fromNewinsureds.policyclauses may play a role in this. Some insurers, particularly those based in the US, recognise that many large greenhouse gas emitters are essential industries that will require a transition period if economic collapse is to be avoided. They may seek out a pragmatic middle ground where they continue to support essential large emitters provided they demonstrate an intention to reduce theirTheimpact.recently established Chancery Lane Project provides “climate clauses” for use in many kinds of contracts, with insurance policies being no exception. Model clauses specifically for insurance purposes include:•aGeneral Condition requiring companies to carry out a climate change risk assessment (Kitty’s clause);
Increasing premiums are also likely to drive business behaviour. As the liability risk associated with emitters increases, so too will premiums, which could in turn lead insured businesses to move away from operations which put them at risk of claims. As financial markets and regulators react to the threat of climate change by requiring disclosure of insured businesses’ climate information, the risk of liability for disclosure breaches and other liabilities such as regulatory action for “green-washing” is also on the increase. Underwriting focus, particularly in D&O, statutory liability and environmental liability lines, will likely sharpen given the increased risk of climate change-related regulatory actions.These changes could have a very significant effect upon the global economy as insurers’ actions starve essential industries of critical investment. While this may assist in the move to a net zero economy, it risks doing so in an ad-hoc manner that may not produce the best outcomes for the least economic pain.
Some climate change activists have criticised the Net-Zero Insurance Alliance for a lack of ambition. The Association of British Insurers, in contrast, has issued a climate change “road map” with an earlier target of 2030 to halve emissions linked to its members’ operations, supply chain, investment and underwriting portfolios. That is only 8 years from now.European insurance companies appear to be leading the way, with a number having announced restrictions on their willingness to cover the coal and mining industries. AXA was an early adopter, announcing in 2015 that it would not make new investments in the coal industry, initially excluding companies that earned 60% and then 50% of their revenue from carbon-emitting operations. Other insurers followed. Chubb, for instance, avoids making new debt or equity investments in companies that generate more than 30% of their revenue from thermal coal mining or energy production from coal, and it no longer offers underwriting for the construction and operation of new coal-fired plants for companies that generate more than 30 percent of their revenue from coal production. It has said that it will phase out its insurance cover for existing coal plants that exceed this threshold this year. The large US insurers appear at present to be moving more slowly in this direction, although that could change quickly.
the same problems; a significant issue for New Zealand.
17www.covernote.co.nz
Confidence is everything.
Tightrope walking is simple. There’s only one blatantly obvious thing to worry about. If you’re in business there are a million things to worry about. So it’s reassuring for you and your customers to know you have the support of New Zealand’s largest, most experienced business insurance company. NZI have always been here to help when things go wrong, but also to reduce the chance of that happening in the first place. We value our broker relationships and know that by working closely together we can take away some of those worries – and help businesses move ahead with confidence.
Peace of mind for NZ business
“That decision kick started my career, and it was probably the best thing I ever did. I was brave and put myself out there – the rest is history.”
“I was 25 when I applied for my first insurance role which I didn’t get! The hiring manager mentioned someone else had just resigned, so there might be another position available soon. Out of nowhere, I heard myself offering to come in for a couple of weeks to learn while the person was still there, so I had some experience up my sleeve for when the role was advertised. That impressed the hiring manager so much that three weeks later, I got the job.
What Kerrie loves the most about her role is being there for her team, brokers and our community, getting out and about, and focusing on achieving the best possible customer outcomes. For Kerrie, it’s all about leading from the heart.
Since then, Kerrie has had roles in
“A big part of what I do is supporting my team, so they are empowered to do their jobs well, to be confident in having good conversations with their brokers, and that they feel understood and cared for. They are fronting up and trading on a day-to-day basis and are doing everything they can to get the best outcomes for brokers and customers.”
18 September 2022
Kerrie Lawrence, recently promoted to Principal, National Broker Partner, started her insurance journey with NZI 26 years ago, after making what in her words was a brave and bold move.
Leading from the heart
areas across NZI including domestic, accounts, commercial underwriting, sales and underwriting, change management, business operations, and most recently as Regional Manager for the Southern region.
Introducing Kerrie Lawrence, NZI’s principal national broker partner, where the balance of leading, serving, and caring meets.
Kerrie’s beginnings and leadership spirit
A life of passion
If you don’t spot Kerrie around the regions or going out for walks or coffee with friends, she’s likely to be following her granddaughter’s afterschool and sporting activities. Kerrie doesn’t just travel for work, one of her favourite things to do is going on adventures and travelling with her manyKerrie’sfriends.advice for those starting their insurance journey is to work hard and be patient. “Nothing will come on a silver platter. You’ve got to get out there, build your personal brand, be brave and show what you can do, and the opportunities will come your way.”
Being in the industry for 26 years speaks volumes about how fulfilling it is. For Kerrie, the role of insurance
Kerrie was born in Timaru and lived in Palmerston North for most of her life before moving to Christchurch ten years ago. Throughout Kerrie’s life, there have been a few defining moments that upon reflection, she believes lit a spark for a life-long passion for leadership and caring for others.“Icome from a single parent family, and back in the early 80s my dad was the single parent –something that was somewhat unheard of at that time. My dad raised four young children, and me being the oldest sister – I was about ten – took up a mother-type leadership role, looking after my siblings. I think they would probably describe me as the bossy one in our household while growing up.“My dad moved the family to Oamaru when I was about 14 for better family support and I finished high school there. Even though I was at Waitaki Girls for a short time, I was made a prefect during my last year. I was pleasantly surprised to be nominated into this role but looking back now and reflecting on my life’s journey, it makes more sense.”
HUMANS of
aligns perfectly with her passion for people, leading and supporting others.“Ilove the part we play in our community. We understand the importance of being there when customers need us the most and that relationships are important when it comes to business insurance. That’s why we have local people on the ground, move around the regions and make the effort to go to most (if not all) towns, no matter how long the drive is!
Kerrie has met a lot of people throughout the years and the friendships made are for life.
“We were put through extreme challenges where we had to work together, supporting each other through some physically and mentally challenging days. I also left my 2-year-old son with family during this time and completed my first ever half marathon. Both were hard at the time, but I consider them to be significant achievements.
Kerrie and her granddaughter Bella.
“Having good relationships is based on trust and is about truly caring for your team, brokers and others. That’s why I’m excited about my new role as Principal, National Broker Partner, where I now work across all regions in Aotearoa, and I get to continue to focus on what matters the most – our people, our brokers and customers
“At every opportunity, I’ve been visiting brokers across the Southern region which is incredibly rewarding. It’s great to be connecting face to face and meeting new people – it gives me a huge amount of energy and it’s why I love doing what I do.”
“It was a great life experience. I learned a lot about myself then and it taught me resilience, and that I can do anything if I set my mind to it.”
– and making sure we are doing the best we can for them.”
19www.covernote.co.nz Feature
When Kerrie was 22, she was sponsored to attend Outward Bound and completed a 21-day course, which took her out of her comfort zone and challenged her to be the best version of herself.
Kerrie and her partner Trent at the Hooker Valley Track, Aoraki / Mount Cook National Park.
20 September 2022 Feature
Previous governance roles include Auckland Transport, Cigna Life Insurance, Onepath Life and Airways Corporation.
Upon the announcement, Daly retired as chair of the Earthquake Commission, a position she had held since 2020, serving on the Board sinceDaly2014.isalso an independent director of Fonterra Shareholders Fund, Kiwibank Limited and Kiwi Property Group Limited.
AIG New Zealand appoints new chair
AIG New Zealand CEO, Toni Ferrier said: “MJ brings a wealth of experience that will benefit the business as we continue to target profitable growth with a modernised business model and focus on providing excellence in customer service.”
AIG Insurance New Zealand appointed Mary-Jane Daly as chair of its board of directors, replacing Craig Stobo, who retires from the position after more than 10 years.
“We also bid farewell to departing chair, Craig Stobo, who has supported the business through significant change over the past 10 years. We are grateful for his tenure and wish him well for the future.”
Daly has a strong background in insurance, banking and finance, working across a number of roles in New Zealand and the United Kingdom, including spells at State Insurance, IAG, and Fonterra.
Since 1989 the team at Star Insure has designed extraordinary, custom policies for New Zealand motorcycle riders. We lead the way because we innovate and engage in deeper levels of insurance analysis to craft highly-tuned, custom insurance policies that protect riders in the real world. It’s why Kiwi riders choose Star Motorcycle. For extraordinary insurance designed for your client’s motorcycle, talk to Star Insure.
Chris Brophy, executive manager for business at Vero, said brokers had an opportunity to “reach out to their SME customers and provide additional value”.
22 September 2022 Feature
Vero research reveals Covid-related SME insurance gap
Vero’s SME Insurance Index revealed that only 79% of broker SME clients have made changes to their business as a result of Covid-19. Only 23% have discussed changes with their broker, and only 10% have made adjustments to their policies.
Small and conductedpandemic,afteradequatebusinessesmedium-sizedmightnothaveinsurancecoveragechangingpoliciessincetheaccordingtoasurveybyVero.
Vero warned that there could be an insurance gap.
The survey also found that 23% of SMEs had to dive into their savings, get loans, or use retirement funds to stay afloat since Covid hit.
at this important time.”
He said many companies had made changes to their business models since the pandemic, requiring another look at their insurance arrangements.“Whileforsome business owners the changes made may be temporary, for others they reflect a ‘new normal’ which may mean their insurance is no longer providing the right“Wecover.”cansee that the pandemic has caused SMEs to make changes to both their business and insurance, but a large percentage of broker SME clients haven’t talked to their broker about the impacts on their business. This may mean many broker SME clients are missing out on the expertise and guidance of their broker
He said brokers had the opportunity to “build trust and strengthen their relationship with SMEs, to see how each clients’ business has been impacted, and then provide advice to best suit their business needs”.
Meanwhile, economic, regulatory and legislative changes were the issues of greatest concern, with survey results showing the three most affected regions were Otago, Auckland and Waikato.
DEAN MACGREGOR Executive general manager of supply chain & adjacencies
“The feedback was overwhelmingly clear,” says Dean MacGregor, executive general manager of supply chain & adjacencies. “Customers wanted a quality and timely repair, a quick start to the work, good communication throughout the process, and a mobility option.”
24 September 2022 Feature
Why IAG created a collision repair service
According to MacGregor, IAG was keen to deliver a better service to customers in times of stress.
“So, despite these issues, we knew that our size could be used to benefit customers, for example, by leveraging purchasing power and supply chain influence. And
“The reality is that having to get your car fixed often comes after a traumatic or dangerous accident,” says MacGregor. “We want our customers to know that if they need us, not only will their claim be handled well, but we can also connect them to an exceptional repair service that gets them back on the road as quickly, safely and stress-free as possible.”“Theresearch showed us that there is still room to improve how repairs are managed. And we want to lead that. Our aim is to offer customers the premium repair network in New Zealand, made up of Repairhub and a trusted network of repairers.” Why IAG formed Repairhub
When IAG, the general insurance giant behind NZ brands AMI, State and NZI conducted research with several hundred of its customers in 2021, the results underlined one burning issue customers wanted a better vehicle repair experience.
Like many other industries right
now, the collision repair sector is experiencing unique challenges. The lingering impact of Covid-19 restrictions, supply chain delays, access to spare parts, and skill shortages are some of the issues facing“Lastrepairers.year,AMI, State and NZI insured 1.5 million vehicles and facilitated 143,000 repairs at a cost of $387 million,” says MacGregor.
Geeves says Repairhub focuses on non-structural jobs to maximise customer convenience.
Training
At Repairhub, team members are fully qualified, with access to an in-house training base, run by a specialist trainer, whose job is to build a training plan for all employees. I-CAR, the industry’s training provider, runs training and welding tests regularly.
25www.covernote.co.nz
repairs or painting as required. Team members are assigned to individual stations, where they become highly skilled in that aspect of a repair, before having the opportunity to learn other areas of the business.
How Repairhub works Streamlining processes offered opportunity, according to the insurer.
and we measure absolutely everything. We want to know what our customers want and are always looking for ways to improve.
“We felt we could have more of an impact on the smaller and medium sized jobs. Private repair shops are well set up for the larger, structural work, and there are some very skilled practitioners out there. Where we felt we could add value was in these smaller and medium jobs, where we could set up an efficient, specialist production line to help get people back in their cars sooner.”
As it looked to overhaul its repair operation, IAG hired Gary Geeves, a former chairman and current life member of the Collision Repair Association, to head up a new brand, Repairhub.“IAGsaid to the project team, if you had a clean slate, with the priority being to build the best possible customer experience for a quality vehicle repair, what would you do differently? And they left us to it,” says
“A lot of the work is pretty similar,” says Geeves. “It’s bumps and dings, it’s minor paint damage. We could see a way of coordinating these types of jobs to get cars back to customers earlier, while still prioritising quality of the repair.”
we’d seen this done before by other insurers in the form of rapid repair, non-structural repair services.”
“CustomerGeeves.service and team culture are everything to us,” says Geeves. “ We are relentlessly positive. We actively seek customer feedback,
“The collision repair industry works incredibly hard, and it would be a challenge for them to work any harder,” says Geeves. “So, we had to look at other ways to improve the customer experience, because there are only so many hours in a day.”
In a Repairhub facility, vehicles move around the shop in a highly structured method: starting with a full assessment before moving onto specialist stations such as panel
“We are subject to more audits than other repairers,” says Geeves. “But we wouldn’t have it any other way. And while we are owned by IAG, we operate as a separate, adjacency business, held at arm’s length with separate management and operational teams.”
Geeves and the team are also building a new training centre at the soon-to-be-launched Repairhub in Brougham Street, Christchurch, which will provide a base to explore innovative new repair techniques such as plastic welding, minor robotic paint jobs, and other emerging techniques.Thenewtraining centre will allow the team to expand its apprenticeship offering, which will soon be the largest in the country.
Geeves has implemented a rigorous audit programme that covers health and safety, supply chain and customer experience, and includes random spot checks by external assessors.
For more information on Repairhub, please contact your NZI broker.
a network of repairers who share the sameMacGregorideals.” says Repairhub is adding value to the repair industry.
“Customerscustomers.are able to choose
their own repairer, so if they have a local repair shop that they’ve used for years, they can continue to do so – because it’s about ensuring our customers have a great experience that works for them.”
3.8 90
“Yes, Repairhub is a competitive player in this market, but we’re driven by doing what’s best for customers, and we give back to New Zealand’s wider repair network. We’re one more option for collision repair, and we’re adding real value to both the industry and
KEY TO KEY DAYS: NET PROMOTOR SCORE:
“Being owned by IAG, we knew the industry would scrutinise us,” says Geeves. “And I think that’s how it should be – we’ve got high standards to meet, and we have to make sure we’re delivering a quality service. Because this is about people’s safety – these cars have to be repaired to the highest standards.”
The network Repairhub is part of a wider network of repairers available for AMI, State and NZI customers. The insurer says the panel approach is “the ideal way to ensure full capability for customers”.Thismeans customers have a range of vehicle repairers to choose from.“It’s a collective approach,” says MacGregor. “We work closely with our network of repairers around the country and are continuously in conversation with them. We view it as a true partnership, where we share knowledge and expertise, and take on board their feedback and ideas. Our vision of a premium collision repair network for New Zealanders relies on
26 September 2022 Feature
Industry scrutiny
Repairhub has sites in East Tamaki, Hornby, Onehunga, and Te Rapa, with planned launches in Sydenham, Wairau Park, Hobsonville and Porirua.
27www.covernote.co.nz
The genesis of the Act was the government’s concern that some financial institutions lack sufficient customer focus. One particular problem the government saw was financial service providers like insurers paying intermediaries who are acting on behalf of consumers, incentives based on the volume or value of sales made to those consumers. The government felt consumers needed to be better protected in this situation.
At a high level, the Act:
• Requires those same institutions, and any intermediaries that pay incentives to their employees or agents (or another intermediary) in connection with the sale of the institution’s services to consumers, to adhere to new regulations (not yet released) that govern those incentives.
The definition of ‘incentives’ is very wide and will catch
The exact impact of the new regulations on commissions and other incentive when entering into a contract of insurance with a consumer are not clear as the government has not released the new regulations yet!
Please contact us if you require any further information.
Opinion
Amendment Act became law on 29 June 2022. Before that date it was nicknamed the COFI Bill, short for Conduct of Financial Institutions. Most of the Act is not in force yet; its likely start date is early 2025.
Where there is a dispute about policyholder’s purpose, the onus is on the insurer/intermediary to prove that the policyholder is not a consumer.
The Financial Markets (Conduct of Institutions)
on the Financial Markets (Conduct of Institutions) Amendment Act 2022
The definition of ‘intermediary’ is very wide. It includes both direct intermediaries and any sub-intermediaries under them.
The Act is hard to interpret as it has definitions in different places and uses definitions in the Financial Market Conduct Act 2013 (which it will become part of), as well. As a result, it is hard to gain a clear picture of how the new regulatory regime works in practice.
any monetary or non-monetary benefit directly or indirectly paid. Traditional commission payments based on a percentage of the premium are caught. Profit shares are also be caught.
A contract of insurance is deemed not to have been purchased by a consumer if the policyholder certifies in writing before entering into the contract that it is wholly or predominantly for business purposes.
• Requires the following institutions: - Banks, - Licensed insurers, and - Non-bank deposit takers (finance companies) to create and adhere to their own fair conduct programmes towards their customers, and
Crossley Gates Frank Rose cgates@keegan.co.nz frose@keegan.co.nz
The key limitation on the application of the new regulations is that they only apply to contracts of insurance entered into with consumers. A consumer is defined as a policyholder who enters into the contract wholly or predominantly for personal, domestic, or household purposes. Note the test appears to be subjective – it is the purposes of the actual policyholder concerned that counts.
28 September 2022 Feature
Since 2020, employees have adapted to the work-from-home culture, embracing the work-life balance it provides. In addition, many have questioned their employment and shifted their priorities.
Here are my top tips for fighting the Great Resignation and retaining talent.
As New Zealand opens its borders to the rest of the world, managers are posed with a new challenge – how to retain talent when the temptation to move overseas is very real.
Technology’s Wellbeing at Work study found those considering leaving their jobs grew from 34.7% to 46.4% in 2021. Factors such as dissatisfaction with career options, a need for flexibility, lack of workplace support and redefining career goals were listed among the Transformationreasons.in the workforce has never been more prevalent nor so necessary. So how do you ensure you are offering an appealing and attractive work environment or role to retain good talent?
Keeping employees motivated is a challenge that all managers face at the best of times, and as we shift into a post-pandemic world, this challenge has never been greater.
Auckland’s University of
Fight the flight: how to navigate the Great Resignation and retain talent
Gabrielle Cook, national people and culture Gallaghermanager,Bassett
‘Great Resignation’ can be worrying for businesses, these tips can provide employees the opportunities and flexibility they are craving and remedy their need to look elsewhere.
29www.covernote.co.nz
3. Prioritise workplace flexibility
Younger employees may be looking to travel and have new experiences as the world’s borders open. Employers should consider harnessing their employees’ want for career development and travel. Secondments – where employees are temporarily contracted to a client company to offer their expertise – increase innovation, holistic knowledge, improve retention and combat fatigue. By embracing the employee development that secondments offer, businesses can improve their relationship with employees. Secondments can take place in different NZ cities or close by in countries such as Australia to help scratch employees’ travel itch.
Research has shown that managers are sometimes the number one reason why employees resign. We advise ensuring that you
Acknowledging that staff need to be able to grow and complete their role is key when it comes to a hybrid working model. Employees need to feel empowered to utilise the resources and information you provide. Investing in resources such as communication and video platforms, online team building events, and web-based file distribution and collaborative software will help in your efforts to engage staff. Using these software tools, your dispersed team will have the proper communication tools at their disposal to facilitate valuable team conversations. Employees will also feel supported to perform to their potential.Whilethe
2. Invest in your managers
4. Supply resources that enable employee inclusivity and growth
In this post-pandemic work, it’s important to embrace the pandemic culture shift by offering a flexible and hybrid working model for your employees. Be upfront with your employees and ask them what working model works best for them. Each employee will often have their own preference based on their personal situation. Offering real flexibility – where employees can choose their working model - can improve work-life balance and staff mental health.
1. Embrace employee development and secondment opportunities
employ managers that care about their employees and believe in their potential. For new managers, hire people with the management skills that your business needs. For current managers, consider providing them with proper training to fix any current behavioural issues and encourage meaningful career focused conversations between managers and employees.
30 September 2022 Feature
NZIA members aim to transition their insurance and reinsurance underwriting portfolios to net-zero greenhouse gas emissions by 2050, consistent with a maximum global temperature rise of 1.5°C above preindustrial levels by 2100, in alignment with the Paris Agreement on Climate Change.IAGNew Zealand CEO Amanda Whiting said: “As New Zealand’s largest general insurer, with a
IAG has joined the United Nationsconvened Net-Zero Insurance Alliance as part of its overall commitment to achieving net zero.
IAG joins InsuranceNet-ZeroAlliance
IAG has a target of achieving net-zero emissions by 2050 across its value chain, with an intermediate target of a 50% reduction in emissions by As2030.no methodology currently exists to measure and disclose net zero Scope 3 emissions relating to customers’ insured assets, by participating in the NZIA, IAG will work with the world’s leading insurers to develop emissionsitshasandbusinesssupportmethodologiesindustry-appropriateandstrategiestoajusttransitiontonetzero.IAGhasbeenacarbonneutralinrelationtoitsScope12emissionssince2012,anditintermediatetargetstoaligninvestmentportfoliotonet-zeroby2050.
The move follows the Driving to Zero focus area outlined in IAG’s Climate and Disaster Resilience Action Plan. The insurer committed to using its underwriting and investment approach to drive net-zero emissions.
“As a business, we are committed to reaching net zero by 2050. We are excited to join the Net-Zero Insurance Alliance and be involved in developing the methodologies and strategies to achieve this through our underwriting portfolio and work towards a net-zero future.”
relationship with one in every two New Zealand households, we see firsthand the impact of climate change through changing weather patterns and weather events on our customers and their communities.
The insurer joins 28 other leading insurance companies worldwide, representing just under 15 per cent of the world’s premium volume.
We’re pleased to support this critical mahi with a $60,000 donation thanks to the generosity of our brokers and partners.
HOPESPREADINGFROM Blu to Cape Reinga
To nd out more and help make a di erence, visit keytolife.org.nz and iamhope.org.nz
The Key to Life Charitable Trust and I AM HOPE work hard to reverse depression and suicide rates in our communities, particularly amongst our young people.
insuranceadvisernet.co.nz Thank you for di ing deep. We are stronger together.
In 2016 Rai asked his broker if he was covered for methamphetamine contamination because he noticed that this kind of damage was becoming more common in NewRai’sZealand.broker advised him that there wasn’t specific cover for damage caused by methamphetamine contamination under his policies, but that this type of damage would be covered in line with his policy terms.
In 2020, Rai had a property tested for methamphetamine contamination after his tenants moved out. The testing showed methamphetamine contamination in a few different areas of the house. Rai arranged for the property to be decontaminated, and he re-carpeted and re-painted the entire house.
changedname*
Dispute
Better availablecover
In 2018, Rai’s insurer made some changes to their home insurance policy, including introducing specific cover for methamphetamine damage. Then in 2019, the insurer updated the policy terms again and added a new testing level threshold for methamphetamine contamination cover. Rai’s broker didn’t speak to him about the changes to the methamphetamine cover, but he sent Rai a document that explained the changes alongside a copy of the new policy wording.
The claim
32 September 2022 FSCL Case Study
Rai complained that his broker’s policy
Changes to methamphetamine cover
Rai contacted his broker to make a claim for the damage caused by the methamphetamine contamination. Rai submitted a number of invoices for the methamphetamine testing and decontamination work, as well as for other property maintenance/renovation work he had done. The total amount Rai wanted to claim was $20,000.Rai’sbroker advised him that the methamphetamine contamination level at his property didn’t meet the required testing level specified in his policy, so the claim for the testing and decontamination work would not be covered.Raiwas unhappy that his claim wasn’t covered. He thought his broker had been negligent in recommending a policy with a high methamphetamine contamination level threshold, so Rai complained to FSCL.
Rai* owns three rental properties, and in 2014 he engaged an insurance adviser (broker) to help him get the right cover for his needs. Rai’s broker advised him to take out home insurance policies, with additional landlord’s cover, for each of his properties. The policies renewed each year, and Rai’s broker sent him his new policy schedule and policy wording annually.
Resolution
There are a variety of home insurance policies available in the market, so after considering the types of risks they are wanting to insure, a consumer could benefit from comparing cover between different insurers. Some consumers may wish to seek expert advice from an insurance adviser if they have complex needs or are finding the different policies difficult to understand. For landlords in particular, damage caused by methamphetamine contamination may be something they want to be insured for. In New Zealand, there are two sources of information which have different views about what level of contamination creates a health risk – which means that insurers follow one of the two standards. When looking at taking out a policy, it is a good idea for a policyholder to check which contamination standard the insurer uses, so that they are aware of the level of coverage they will have.
Rai rejected FSCL’s final recommendation, which means it is not binding on his broker. Rai is free to pursue his complaint via other channels, such as court action, if he wishes.
FSCL reviewed all the correspondence between Rai and his broker and saw Rai’s email from 2016 asking his broker about methamphetamine cover, and found that the broker’s advice at that time was correct – there was no specific ‘methamphetamine cover’ in Rai’s policy.
FSCL thought that because Rai had raised concerns
FSCL considered it was most likely that Rai would have chosen a different policy (which had a lower testing threshold for methamphetamine contamination) if his broker had discussed the insurer’s policy changes with him. Rai had a home insurance policy with a different insurer for one of his other properties, and FSCL considered he would likely have taken out a policy with that same insurer for his contaminated property.
INSIGHTS FOR CONSUMERS AND PARTICIPANTS
This case also highlights the importance of an adviser’s record-keeping obligation and understanding of their clients’ needs. Rai’s broker ought to have known that Rai was concerned about methamphetamine cover because he had raised this in the past. When Rai’s insurer made changes to their methamphetamine cover, it would have been best practice for the broker to speak with Rai. Explaining the changes and giving alternative options would have allowed Rai the opportunity to decide whether he was still happy with his policy.
Review
recommendation was inappropriate because there were other policies available in the market that had better methamphetamine cover (which would have covered his claim).Thebroker
33www.covernote.co.nz
Rai’s insurer changed their policy requirements for methamphetamine-related claims in 2018 and again in 2019. In 2019 when Rai’s policy renewed, his broker sent him a policy schedule which referred to an out-of-date policy wording.FSCLnoted that Rai’s broker didn’t speak to Rai about the changes to his cover, but he did send him a ‘summary of changes’ document which explained the new methamphetamine testing level requirement.
with his broker about methamphetamine damage in 2016, showing that he was particularly concerned to have cover for methamphetamine damage, and the broker had sent Rai a link to the incorrect policy wording in 2019, the broker should be responsible for covering some of Rai’s claim for methamphetamine damage.
Once FSCL was satisfied with its assessment of the costs that Rai would have been covered for under the alternative policy, it decided that his broker should pay 50% – which came to $3,000. It felt that a 50/50 split reflected the contribution to the loss by both Rai and the broker.
FSCL didn’t think the broker should cover the full cost of the claim, because Rai had received a copy of the new policy wording and a separate document that described the new methamphetamine testing level requirements.
didn’t think he’d done anything wrong. He said that Rai’s policy wording described the details of the methamphetamine cover, and he had sent Rai a document that explained the changes the insurer made to the methamphetamine cover in 2019.
FSCL assessed how Rai’s claim would have been treated under the terms of the alternative policy. It found that some of the costs Rai claimed wouldn’t have been covered under the alternative policy and explained this to Rai.
When Marge and the insurer were unable to agree, Marge complained to FSCL.
Marge complained that the insurance policy was not fit for purpose. It would always be the case that a patient
Marge was very concerned that she, and other medical professionals, might not realise that although they thought they had cover, once the policy expired, they would be uninsured.Theinsurer replied that Marge’s policy was a ‘claims made and notified’ policy. The insurer had agreed to indemnify Marge for a claim made during the period of insurance, which was defined as starting at the beginning of the day specified in the insurance schedule and ending at the end of the day specified in the schedule.
changedname* PI
Dispute
Marge* is a physio with professional indemnity insurance. In December 2021 Marge’s insurer advised that they would not be renewing her insurance policy when the policy expired the following March.
would be complaining about events that occurred in the past. Marge believed that even though her policy term had expired, the policy would respond to events that occurred when the policy had been in place.
Although the event Marge was complaining about occurred in February, she did not notify the insurer of the gapinsurancedispute
34 September 2022 FSCL Case Study
In June 2022 Marge learned that a former patient had complained to the Health and Disability Commissioner about treatment given at an appointment in February 2022, before her policy was cancelled. Marge contacted her former insurer immediately, but the insurer declined to even consider Marge’s claim saying that cover ceased when the policy expired in March.
However,schedule.Margesaid that her complaint was really that the policy was not fit for purpose. Marge explained that it will always be after a consultation that a complaint will be
Resolution
claim until June, after the policy expiry date in April. The insurer said they had no obligation to consider Marge’s claim.
Review
It was FSCL’s final decision that, under the policy wording, the insurer was entitled to decline to consider Marge’s claim. While FSCL acknowledged Marge’s concerns about the gap in cover, it could not see that this was a matter for the insurer to resolve.
INSIGHTS CONSUMERSFOR
Those with professional indemnity insurance may like to pay particular attention to what will happen to claims arising or being notified after the policy expires.
35www.covernote.co.nz
During FSCL’s review it became clear that everyone, including Marge, agreed the policy did not cover Marge’s loss. Marge’s relationship with her insurer was contractual, so any obligation the insurer had to cover her loss was based on the policy wording. The policy clearly stated that there would only be cover during the period of insurance and, unless the policy was renewed, the policy would cease absolutely on the expiry date specified on the insurance
Your insurer is only obliged to cover your loss if it is covered by the policy wording. It is important that you read your policy wording to understand the extent of your cover.
lodged, and, without continuous cover, it was inevitable that, despite having insurance in place at the time the event giving rise to the claim occurred, the medical professional will be left uninsured.
FSCL could see that Marge was in a difficult position, however it did not agree that the ‘claims made and notified’ policy was inappropriate. It was the policy she had chosen and paid for. FSCL could not re-write the policy terms to provide cover for those affected by the insurer’s decision not to renew a policy.
“Smashed up” AirBnB claim sparks complaint
Aman whose property was “smashed up” by a paying guest was further upset when his insurer applied multiple excesses and provided no loss of rent payment under a landlord’s house insurance policy. In his complaint to the IFSO Scheme, Mr A said he was forced to accept the claim settlement and said he felt “bullied” into agreeing to 4 separate excesses for each of the 4 rooms damaged, even though it was one event and the damage occurred over one night.
The insurer accepted the claim. However, a dispute arose with Mr A about the 4 excesses applied of $500 for each of the 4 rooms in which the damage occurred. The insurer offered $7,504.44 in settlement of the claim, rather than the $22,500 he expected for the cost to repair the damage less one excess and 8 months’ loss of rent. The insurer said it had no obligation to pay loss of rent, because it didn’t know Mr A was renting rooms of the house out to paying guests through AirBnB, which would have needed a commercial policy.
Following the IFSO Scheme’s discussions with the insurer, it accepted that there were unreasonable delays in settling the claim. Therefore, it offered to settle the claim for an additional $3,484, reversing the application of multiple excesses and making a goodwill payment. Mr A agreed to accept this amount in full and final settlement of the claim and the complaint.
Having reviewed the file, the IFSO Scheme believed Mr A’s version of how the damage occurred was consistent with the damage described by the loss adjuster. However, as the damage was caused deliberately, an additional excess of $500 also applied, so there was a total excess payable of $1,000.
IFSO Case Study 36 September 2022
Mr A held insurance on his property that he rented out to AirBnB guests. In April 2021, he made a claim for damage to the property, which was caused deliberately by a
guest. He told the insurer that “a guest who turned out to be some sort of criminal, smashed the place up one night while drunk”.
AA Insurance chief executive Chris Curtin is set to retire at the end of 2022 after 28 years at the helm.
“After 28 years, I will undoubtedly miss the people and the company we built together, but I’m equally as excited to see our remarkable team drive our brand and business forward.
Feature
“Chris has built this company from the ground up and his imprint on this business speaks for itself,” said AA Insurance chair, Doug McTaggart.“Underhis leadership, AA Insurance has consistently achieved outstanding results and exceeded expectations, and now dominates a vast array of independent industry awards and honours – including being voted Reader’s Digest most trusted general insurer for over a decade, consistently ranking inside the top ten in the Corporate Reputation Index and ranking among New Zealand’s best places to work.“On behalf of the board of directors, I wish to thank Chris for his hard work and dedication over the years, and to acknowledge his unique ability to inspire others to go above and beyond. We have been extraordinarily lucky to have Chris lead our business for so long. We will miss him and wish him and his family all the very best for his retirement,” he said.
The AA said it has begun the search for a replacement CEO.
Long-serving AA boss to retire
Curtin said it was the right time to hand over to the next generation of industry leaders.
37www.covernote.co.nz
“It’s been a pleasure working closely with Doug and our Board, who have been inspirational in their support and guidance along the way,” Mr Curtin said.
Curtin has led the company from a start-up to one of the nation’s largest insurers, employing more than 1,000 people and covering 500,000 kiwis.
“It’s been an honour to lead our talented leadership team and work alongside so many others who share my passion for creating outstanding customer experiences and building a team culture that genuinely empowers our people to thrive.
If the stated period expired during the term of the policy, the cover is solely determined by the correct application of the unoccupancy clause and not by the duty of disclosure before inception/renewal.
Ask an Expert
Do you have a question for our experts?
Most house policies expressly provide for an automatic suspension of cover when a house remains unoccupied for a stated period of time.
There is a school of thought that if the policy expressly addressed the happening of certain facts,
After five months of being unoccupied, the property was broken into, and malicious damage occurred.
The insurer has advised that they will not backdate
Does this fit the bill for a prudent underwriter test? Do we have an argument to have the claim accepted?
QUESTION
A client contacted the office to advise that the address for their contents insurance was changing, there were no changes made to the owner-occupied home at the time. It appears this was missed (we are unsure whether a discussion about the house occurred or not).
Our opinion is that had the insurer been notified at the time the contents insurance was changed, there would have been no issue in covering the property with standard unoccupancy clauses, and therefore the damage sustained should be covered.
CROSSLEY GATES
The house was then left unoccupied pending renovation (no notification to the insurer).
acceptance of cover for the unoccupied house but agreed to cover the home as unoccupied moving forward. They will not cover the property for the damage sustained.
The prudent underwriter test
there is no duty of disclosure relating to those facts - the policy already anticipates them and addresses them.The prudent underwriter test is the test used to determine whether a fact is a material fact that must be disclosed. If a (theoretical) prudent underwriter would want to take it into account in deciding whether to offer cover or deciding the terms of that cover, the fact is material and must be disclosed.
Assuming the exclusion excludes gradual damage (and not gradual causes), the declinature is incorrect.
Our client has claimed under their house insurance for a crack that has appeared in their concrete driveway. This has been caused by the root of a neighbour's tree growing beneath it.
QUESTION
We have an insured who suffered loss of rent due to the tenant vacating for non payment.
The insurer wishes to decline it on the basis that "Whilst we understand that cracks can be sudden, the gradually growing roots beneath the driveway have caused the cracks and therefore there the policy does not respond".
Is the insurer correct in saying the excesses are deducted from the 8 weeks policy sub limit?
There is a Tenancy Tribunal order in the insured's favor and the tenant has been lawfully evicted which meets the policy terms and conditions for the loss of rent extension to apply.
The loss adjuster's report says: "We believe that the loss is not sudden and accidental as the growth of the tree root has a direct correlation to the growth of the tree, and as it has been there since before 2008, we believe that the cause relates to a gradually occurring deformation."
QUESTION
Is a crack sudden or gradual?
CROSSLEY GATES
Tenancy tribunal question
CROSSLEY GATES
Yes. The key to determining this is, what is the excess deducted from? The claim? Or the insured's loss?
My argument is that a crack cannot by definition be gradual. Sure, the pressure that builds up leading to the crack could be, but the actual event itself has to be sudden. The cause is irrelevant?
We’ll first deduct all of the following from your claim:1.any rent paid in advance
2. any bond held by Tenancy Services
The wording states: Limits
The damage claimed for is the crack in the concrete, and like all cracks, one minute it is not there and the next minute it is. The break in the concrete's internal strenght happens very quickly, revealing itself as a crack. This is the very opposite of gradual.
Here it says it is deducted from the claim, which is the maximum 8 week limit. If it said 'loss', it would be deducted from the 10 week loss of rent, and if the remaining loss equals or exceeds 8 weeks, the whole 8 weeks is payable.
Ask an Expert 39www.covernote.co.nz If so, visit iNavigator, www.inavigator.co.nz, or the IBANZ website, www.ibanz.co.nz - and let us know.
The policy sublimit is up to 8 weeks loss of rent. The insured suffered 10 weeks loss of rent. The insurer is wanting to deduct the excess (+ an additional excess of 1 weeks rent) from the policy sublimit.
3. an additional excess of one week’s rent.
Can the claim be declined because the event precipitating the sudden damage was gradual in nature?Isn'tit the same as if the gradual rusting of or pressure build up behind a blockage in an internal water pipe might lead to a sudden break and cause damage to surrounding property? That water damage would be considered sudden, even though the pressure building up within the blocked pipe might have been gradual? So the damaged property would be covered?
limiting effect on the breadth of the words 'personal item', but will not be limited to those items alone.
(iii) The kids' gumboots and hockey gear are covered as personal items normally carried if this is what the driver/employee says.
The commercial motor policy has the following extension:
"Sports equipment is not normally carried on your person, nor are gumboots, hence it is outside the scope of cover provided by this extension. "
The policy doesn't state what "normally carried" means - i.e. if this is normally carried in a vehicle, on the person or both.. If a jacket is an item of clothing normally carried so are gumboots given we are in the middle of the winter...
(ii) The driver's/employee's gumboots are covered as they are an item of clothing.
CROSSLEY GATES
The insurer agrees to pay on "umbrella, headphones, Mac Pac jacket" .
Note:
In our view, the wording is quite broad and there is no definition of "item of clothing" and "any personal item normally carried", hence we need to revert to the ordinary meaning of these words.
What does ‘normally carried’ mean?
The definition of 'personal effects' means this covers: 1. Any item of the driver/employee's clothing, and 2. Any personal item (by implication beyond clothing) the driver/employee normally carries in the car, but not a laptop or any luggage.
However, they refuse to pay on: "gumboots (adult and kids), body board, Hockey sticks and Hockey bag, elevator security key that allows access to secure parking of the vehicle (which was kept permanently in the vehicle)".
"Personal effects: We will extend this insurance to cover accidental loss to the driver and employees of the insured’s personal effects as a direct result of accidental loss to the insured vehicle that is covered under this policy.
(i) The elevator security key is covered as it is a personal item of the driver/employee normally carried in the car.
The insurer's argument is: "The elevator key is not covered under the “personal effects” extension or CMV policy, as it relates to a building."
QUESTION
Putting this all together, I suggest:
If a wallet is an item that is normally carried, then so is the elevator key that allows access to a secure car park. With regards to the gumboots and the sports equipment - these were kept in the vehicle as the insured's child has sports several times a week so for this particular insured these items were normally carried in their vehicle.
b) The examples of 'handbag, wallet, personal music device or mobile phone' may have some
Ask an Expert 40 September 2022
“For the purpose of this extension ‘personal effects’ means any item of clothing (including reading and sunglasses) or any personal item normally carried (such as a handbag, wallet, personal music device or mobile phone) but excluding any laptop or item of luggage. The personal effects are insured for their market value."
The extension is covering the personal effects of the driver and any employee only.
Would appreciate your guidance with regard to policy interpretation.
a) The word 'normally' relates back to the driver employee so will be subjective - the test is what is normal for them.
One of our insureds had their business vehicle stolen. There were some personal items in the vehicle that were stolen with the vehicle. The vehicle portion of the claim has been settled. Due to the high excess on personal contents, it is not economical for the insured to submit a personal contents claim.
(iv) The body board may be in doubt, depending on what the driver/employee says.
“Multiple weather events experienced during the year resulted in the highest volume of claims since 2018; and customers experienced longer waiting times for repairs to their homes and vehicles because of the delay in getting materials.”
The NZ insurance group made $165 million over the year, as Australian parent Suncorp announced a net post-tax profit of A$681 million, down 34%.Chief executive Jimmy Higgins said the business had experienced topline growth and decent underlying performance in a disrupted year.
Across Suncorp’s NZ general insurance business, gross written premiums grew 14%, with
“This disruption came from the impacts of Covid-19, including the war on talent in a tight employment market, the restrictive environment our people have had to work in, and employees being off sick with Covid.”
Higgins added premiums would also be impacted by the pressure on materials and labour costs in repairing homes and cars, and increases in Toka Tū Ake EQC levies following the increased EQC cap changes in October later this year.
New Zealand saw posttax profit fall by 23% in the 12 months to June amid higher natural hazard costs and lower investment returns.
intermediated and direct channels recording strong growth through a combination of customer growth and pricing increases that were “necessary to offset the inflationary pressures that we continue to experience”.Higginsfired a warning about the year ahead, predicting natural hazard weather events would become more frequent and expensive, leading to higher reinsurance costs.
support customers in their time of need.”Higgins said Suncorp New Zealand’s strategy was focused on making things easier and faster for its customer.“Ourfocus remains on improving outcomes for our customers, and we are doing this by investing in our people, technology and processes. We’ve a deeply held purpose to support New Zealanders when they suffer loss. Our products and services are designed to protect what matters to customers and everything we do is directed to that purpose.”
41www.covernote.co.nz Feature
The New Zealand general insurance business, which comprises Vero Insurance, Vero Liability and direct channel AA Insurance delivered a net post-tax profit of $150 million, down 15% on the year before.
Suncorp said the intermediated channel experienced “strong growth reflecting the value New Zealanders place on expert advice and the important role that insurance brokers play in the insurance market”.
“The strength of our reinsurance programme allows us to provide insurance protection to customers throughout New Zealand and we are continuing to provide support to those customers that experience vulnerabilities, particularly as they manage through the costs of living pressures that exist in New Zealand today.“The tight employment market and the living cost pressures in New Zealand makes it difficult to attract and compete for talent in other countries,” Higgins added.
Suncorp
“This year, we’ve experienced a highly volatile investment market – the most volatile we’ve seen in a long, long time. Despite this, the underlying business has performed well, and we’ll continue to be a strong, well-capitalised company that can
The group said Vero Liability also delivered strong results.
Suncorp NZ profits fall amid higher natural hazard costs
If you would like to find out more about our courses, get in touch with PIQ:
Phone: 09 306 1731
Tim Larkin, Director of Professional IQ College, CCO of Dacreed
An online-only bridging course for those who want a simple way to demonstrate they understand the new regulatory framework
Email: enrolments@professionaliq.co.nz
DevelopmentProfessional
Professional IQ College is continuing to support the needs of IBANZ members as the FAP transition period rapidly approaches. Over the past few months, in addition to providing the normal NZ Certificate in Financial Services, PIQ has launched a number of initiatives to help advisers meet the new licensing requirements.
The accelerated course is for existing advisers who already have a good knowledge of the industry and want to get through the qualification (or a strand) as quickly as possible. With a minimum of three years industry experience as a pre-requisite, the facilitated webinar sessions, allow you to review the material as a group and identify the key elements needed to answer the assessments. While there is a premium on the standard course, getting everything done in time and quicker, could make this a worthwhile investment for you. This course is ideal to do over December and January. Places are limited so reserve your spot now.
42 September 2022 Professional College
If you have version 1 of the Certificate in Financial Services, you don’t need any more formal qualifications, but you do need to be able to demonstrate to the FMA that you are up to date with the new regulatory framework. If you want an easy way to review all the relevant content and complete a multi-choice test to confirm your understanding of this, we have a developed a bridging course that does just this for $200 plus GST.
Website: www.professionaliq.co.nz
PIQ supports IBANZ members ahead of FAP transition period
Accelerated Certificate in Financial Services (full qualification or by strand)
IBANZ CALENDAR OF EVENTS
What happens when there are two causes of loss, one insured under a policy and the other excluded?
October 11 | Agriculture - crops session | Peter Ziegler
Different ways to insure wages (including Dual Wages) – and what is best for your clients?
TBC* | Marine Workshop with ICNZ | Speakers and Venue to be confirmed
More details to come.
October 20 | Reasonable Care | Craig Langstone
How To Write, Send, Manage The Perfect Email/Update/Newsletter.
This session will assist you with frequent PI difficulties.
Non-disclosure and misrepresentation issues often arise when insurance products are interpreted incorrectly. In this seminar, Helen will be discussing the common issues that arise with non-disclosure (including innocent non-disclosure and material non-disclosure) and misrepresentation, with a particular focus on a brokers’ knowledge of issues known to them.
The IFSO and IBANZ discuss the impact the new Code of Professional Conduct for Financial Advice Services is having on the F&G insurance advice sector.
September 8 | Gnarly PI Issues - Extensions, Exclusions and Definitions | Richard Hargreaves
We will discuss a Business Interruption calculation of loss as a worked example.
November 2 | Successful Email Marketing - Distribution Methods. Response Management | Debbie Mayo-Smith
September 14 | Personal brand & Social Media | Natalie Cutler-Welsh
November 3 | Non-disclosure and misrepresentation issues | Helen Twomey
November 16 | Cyber, Record Keeping & Vulnerable | FMA
More details to come.
November 17 | Business Interruption – Insurance of Wages | Mark Anderson
If you write. Develop content. Design. Help prepare presentations, this is a must attend course for you.
In this seminar, Michael will be providing an update on the current regulatory landscape with a particular focus on both the Commerce Commission and the Financial Markets Authority. Michael will also be discussing his opinions on each agency’s increased powers and investigation/prosecution budgets while also sharing his first hand experiences with both investigations and prosecutions.
September 7 | Exclusion Clauses | Virginia Wethey
In this webinar Craig Langstone of Fee Langstone will address the vexed question of what does, and what does not, amount to “reasonable care” in any given factual situation.
October 6 | Business Interruption – Claim example – and how well would your client’s cover have performed? | Mark Anderson
October 18 | PowerPoint Presentations that Persuade | Andrew Gunn/Claire Benjamin
SEPTEMBER 2022 - ALL WEBINARS ARE HELD AT 10.30am - 11.30am
Peter will be discussing a claim relating to the importation and sale of a product to the agricultural sector that has prematurely degraded.
September 28 | Successful Email Marketing – Strategy. Planning. Content | Debbie Mayo-Smith
43www.covernote.co.nz
October 28* | IBANZ AGM 2022 | IBANZ Board
A team from the Financial Markets Authority will discuss their expectations of Financial Advisers on a range of issues that contribute to good outcomes for your clients. This presentation will assist you to understand your obligations, in the context of the Financial Markets Conduct Act, relating to cyber security and systems resilience, record keeping and client vulnerability.
It's time for the IBANZ 18th AGM
NOVEMBER 2022 - ALL WEBINARS ARE HELD AT 10.30am - 11.30am (except *1.00pm - 4.00pm)
We will look at social media and how to raise your profile and personal brand in a way that is both authentic and effective.
OCTOBER 2022 - ALL WEBINARS ARE HELD AT 10.30am - 11.30am (*except Oct 28th - 1.00pm start)
TBC | NZ Insurance Industry Legislation Update | Simon Moss & Mel Gorham
September 5 | Codes of Conduct and the General Insurance Advice sector | Karen Stevens, Andrew Gunn & Mel Gorham
October 12 | A snapshot of the current regulatory landscape – Commerce Commission and Financial Markets Authority | Jon Stagg
How To Write, Send, Manage The Perfect Email/Update/Newsletter.
Roger Abel (Vice RothburyPresident)Group Limited
PO Box Shortland1184Street, Auckland 1140
James Shearing
Tel: 09 869 2785
Chief Broking Officer
AffiliatedDirector Insurance Brokers Ltd
IBANZ
Simon Moss General Manager
Mob:Tel:AucklandPlaza0757094761670021980435
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PO Box Khandallah,22221Wellington 6441
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BrokerWeb Risk Services Limited PO Box ChristchurchSydenham7264 8240
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IBANZ Board
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Toll free: 0800 306 173 www.ibanz.co.nz
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Head of Insurance Legal
PO Box 305415 Triton
Mob: 021 873 399 tony.j.bridgman@marsh.com
Mob:Tel:AucklandShortland180Street1140093097942021377942
Mob: 027 451 8098
Tel: 03 348 9802
www.ibanz.co.nz September2022 constraintsCapacityin New Zealand The future of insuringgreenhouse gas emitters IAG outlines a three-stepnatural hazard plan CoverNote is published quarterly by IBANZ, the Insurance Brokers Association of New Zealand. All correspondence should be addressed to: POCoverNote,Box33-1630, Takapuna, Auckland. TO ContactADVERTISE:Robert Johnson on: e-Mail: robert@benefitz.co.nz Phone: 09-477 4702 Mobile: 0274-970-712 WANT YOUR VERY OWN COPY OF COVERNOTE? Each issue of CoverNote is packed with vital 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 discover covernote live and keep up-to-date with live news and articles from IBANZ, its members and the industry Proudly brought to you by The way the world communicates is changing. www.covernote.co.nz
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Chief Executive IBANZ
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Southern Regional Manager
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Mailing address: PO Box 302504, North Harbour, Auckland 0751
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Ramesh Mavani
44 September 2022
roger.abel@rothbury.co.nz
PO Box Tel:Auckland2221114009928 3015
simon.ross@willistowerswatson.com
Samuel Kerr Insurance Broker SHARE
Willis New Zealand Ltd
Tel: 09 357 4805
PO Box Christchurch2220 8140
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NZCEOBrokers Management Ltd
duane.duggan@crombielockwood.co.nz
Mob: 021 833 286
Mob:AucklandShortland1596Street1140021952230
Willis Towers Watson Auckland
McDonald Everest Insurance Brokers Ltd New Plymouth Moneybox GI Limited Wellington Multisure Ltd Auckland
Aon New Zealand Auckland
Advance Insurance Services Ltd Paeroa
BMS Risk Solutions Limited Christchurch
Northco Insurance Brokers Ltd Masterton Northcrest Insurance Brokers Ltd Auckland
GSI Insurance Brokers Waitakere
GYB Insurance Brokers Ltd Lower Hutt
Adams Trimmer Insurance 1992 Ltd Whangarei
OFS Insurance Brokers Ltd Dunedin
Penberthy Insurance Ltd Auckland
Partridge Advisory Limited Auckland
PIC Insurance Brokers Ltd Manukau
Bay Insurance Brokers Ltd Tauranga
Primesure Brokers Ltd Auckland
Sit & Blake Limited Auckland
Thames Valley Insurance Ltd Thames
PSC Connect NZ Limited Auckland
Omni Fire & General Ltd Auckland
South Pacific Insurance Brokers Ltd Auckland Sweeney Townsend & Associates Ltd Rotorua
FG Insurance Services Gisborne
Honan Insurance Group (NZ) Ltd Auckland
Hazlett Insurance Brokers Ltd Christchurch
Rothbury Group Ltd Auckland Runacres Insurance Ltd Christchurch SHARE Auckland
Thorner General Insurances Ltd Upper Hutt
Builtin Insurance Brokers Limited Tauranga
Frank Risk Management Hamilton
Albany Insurance Services Ltd Albany Village Amicus Brokers Ltd Christchurch
Bridges Insurance Services Limited Hamilton
Hood Insurance Brokers NZ Ltd Auckland
O'Connor Warren Insurance Brokers Tauranga
Cartwrights Ltd Ashburton
Commercial & Rural Insurance Brokers Ltd Alexandra
JRI Limited New Plymouth Lockton Companies NZ Limited Partnership
Dawson Insurance Brokers (Rotorua) Ltd Rotorua
IBANZ CORPORATE COMPANY LIST 45www.covernote.co.nz
AIM Associates Ltd Auckland
Paramount Insurance Agencies Ltd Auckland
Trevor Sutcliffe Insurance Ltd Hamilton
Cambridge Insurance Brokers Ltd Cambridge
Malcolm Flowers Insurances Ltd Taupo Marsh Ltd Auckland
The Advisers for insurance New Plymouth
ICIB Limited Auckland
Willis Towers Watson Auckland
Crombie Lockwood (NZ) Ltd Auckland
Certus Insurance Brokers NZ Ltd Auckland
Grayson & Associates Ltd Auckland Gregan & Company Ltd Papakura
RMA General Ltd Warkworth
Vision Insurance (S.I.) Ltd Ashburton
Ingerson Insurances Ltd Wellington Insurance Advisernet NZ Ltd Auckland
Abbott Group Christchurch
Provincial Insurance Brokers Limited Masterton
PartnershipNZCompaniesLocktonLimited
Atlas Insurance Brokers Ltd Christchurch Austinsure Ltd North Shore City
Coast Insurance Whangaparaoa
Crème Insurance Auckland
Capital Risk Solutions Limited Wellington
Paterson & Co NZ Ltd Auckland
Baileys Insurance Brokers Ltd Auckland
FundAGroup Insurance Brokers Limited Auckland
Insurance Brokers Alliance Ltd Invercargill Insurance Design Limited Warkworth
Insure 247 Ltd Auckland
AIB Group Insurance Ltd Lower Hutt
Vercoe Insurance Brokers Ltd Morrinsville
Abraham & Associates Ltd Christchurch
Apex General Ltd Auckland
Neville Newcomb Insurance Brokers Ltd Auckland
Wallace McLean Ltd Auckland
Avon Insurance Brokers Christchurch
MW Insurance Auckland Nelson InsuranceMarlboroughBrokersLtd (NIB) Nelson
Wanganui Insurance Brokers Ltd Wanganui
Towes Insurance Brokers Ltd Te Aroha
Emerre & Hathaway Insurances Limited Gisborne
Insurance People (Fire & General) Limited Auckland
BrokerWeb Risk Services Limited Auckland
Affiliated Insurance Brokers Ltd Wellington
Property and Commercial Insurance Brokers Feilding
Hurford Parker Insurance Brokers Ltd Hastings Hutchison Rodway Ltd Auckland
