5 minute read
Welcome to CoverNote
by Benefitz
A wonderful welcome to the 2022 Christmas Edition!
With what seemed the longawaited announcement in September of a return to normality, this year has been a busy one.
Regardless of the continuing climate and economic challenges, and the amount of change in front of our sector, our lead story highlights the resilience of our members.
Their ability to adapt to the evolving environment while continuing to put clients first underscores the value that independent financial advice offers.
Whether introducing new procedures, achieving the necessary qualifications, or ensuring compliance is followed and documented, committed brokers never lose sight of who really matters – the client. We have seen an extraordinary amount of government consultation on legislation impacting clients and the insurance industry.
Due to the amount and the pace of consultation, we have not always been able to meaningfully engage with all that we would like to, my following comments summarise some of the work IBANZ has been involved in this year.
In an effort to improve fair conduct of insurers and banks towards consumers, we have seen the introduction of the Financial Markets Conduct of Institutions Act (also known as CoFI).
The FMA, at the industry’s request, fronted a number of forums for insurers, banks and intermediaries involved in intermediated distribution. We were particularly focused on the issues created by the duplication of conduct oversight for Financial Advice Provider (FAP) intermediaries under CoFI and the Financial Services Legislation Amendment Act (FSLAA). FMA guidance on the outcome of these is eagerly awaited.
The Fire and Emergency NZ levy review continues, which followed a philosophy of mini consultations this year. Next year will see the need for further engagement from stakeholders including the insurance sector with consultation on levy modelling due.
Levies paid for by policyholders and collected for the government by the insurance industry account for 95.9% or $604 million of Fire and Emergency total revenue to 30 June 2021.
This year saw the Insurance Contracts Law Review (ICLR) finally come back on the table although it seems likely that progress in 2023 will be halted by the election. The Bill seeks to impose duties on licensed insurers to ensure that consumer insurance contracts are worded in a clear, concise, and effective manner.
It also considers things such as lower duties of disclosure on consumers and imposing tight reporting deadlines on claims made policies to significantly reduce the protection there is currently if a claim is late notified. The Bill also considers insurance exemptions under unfair contract terms and treatment of knowledge held by intermediaries and insureds.
In its current form, the Bill seems to benefit insurers more than expected, but we hope that our submission will help deliver more balance for insureds.
The EQC is undergoing a refresh via the Natural Hazards Insurance Bill, which continues to provide natural disaster insurance for residential homes. Those insured or renewed from October 2022 will be covered by the EQC for up to the first $300,000.
As the EQC is not a licensed insurer, there is disappointingly no requirement for the cover to be presented in a clear, concise, and effective manner and it is not subject to CoFI requirements relating to fair conduct.
You will recall from our September edition that the potential for retreat from flood insurance is being looked at as part of the National Adaptation Plan.
With FSLAA now in place, the FMA recently consulted on regulatory returns for FAP intermediaries.
The extent and amount of information being sought in the draft consultation was surprising. Much of it did not appear to relate to regulated activities, or was very prescriptive in the manner of collection. We are hopeful that the submissions received by the FMA will highlight these issues.
As we very much look forward to relaxing and recharging over the summer break, I wish you, your family, and friends a safe festive season, and the very best that 2023 can offer. Keep safe.
Melanie Gorham
Cover
Features
3. Aon revenue steady in Q3
14.Reserve Bank seeks feedback on insurance governance
22.Howden acquires
Gallagher Bassett’s
NZ personal injury arm
30.Extreme weather claims mount
27. Opinion What the Financial Markets (Conduct of Institutions) Act 2022 means for brokers
Regulars
1. Welcome to CoverNote 18. Humans of NZI 38. Ask an Expert 44. IBANZ Contacts 8. Changes in
New Zealand's insurance market
16. Ex-Tower exec appointed AA chief executive
24.Unfair contract terms regime:
What this could mean for insurers 10.When talking about the weather isn’t just making polite conversation
20.Stop selling cyber insurance for your clients' technology or cyber security
28. The loss adjuster's perspective
32. Which cars are most likely to be stolen in NZ?
35.ICNZ calls for local leaders to prioritise climate change
WANT YOUR VERY OWN COPY OF COVENOTE?
34.Mobile phone claims cost revealed
41.IAG highlights climate dangers
December 2022
2022 A challenging and rewarding year
See page 44 for details on how you can have your very own copy delivered directly to your door... HOT OFF THE PRESS!
CoverNote is the official publication of IBANZ and is distributed FREE on a quarterly basis (March, June, September, December) to members throughout New Zealand and associated companies. Additional copies are available at a cost of $7.50 per copy, or 12 month (4 issues) subscriptions at $30.00, inclusive of postage and packaging. The articles or opinions featured within this magazine are not necessarily the opinions of the publishers or IBANZ, and they do not accept responsibility for the content of articles featured within the publication. No part of this publication may be reproduced without the written permission of the publisher. The publishers do not accept responsibility for loss or damage to unsolicited photographs or manuscripts.
IBANZ enquiries should be made to: Melanie Gorham, Chief Executive, IBANZ. Email: mel@ibanz.co.nz IBANZ National Office located at: Unit 4D, 2B William Pickering Drive, Rosedale, Auckland 0632 PO Box 302504, North Harbour, Auckland 0751 Telephone 09-306-1732. Website: www.ibanz.co.nz
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 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
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