Financial advisers from across the country are expected to descend on Christchurch in September to attend Financial Advice NZ’s two-day Ignite conference.

Ignite is being held at the Christchurch Convention Centre and among those confirmed to take part include optimist Chris Riddell and financial adviser, best-selling author and podcaster Victoria Devine. - Dee-Vine – among many others....

Cigna has updated the occupation classes it uses in its online quote tool. A new field has been created so advisers can indicate whether the customer’s occupation is E (eligible), U (uninsurable), or IC (requires individual consideration for disability benefits).

The firm’s Chief Operating Officer Debbie Eyre says the update is part of a raft of changes to be announced by the firm. She will provide more details during a Cigna Live event to be held on 28 April.

And staying with Cigna...

The firm's offering new clients who purchase an insurance policy with the Cigna two months' free cover. The offer runs until 30 June and applies to Cigna’s assurance extra, business assurance, business extra, and agribusiness extra policies issued before 31 August 2022.

Compliance refinery

A FAP director support programme has been launched by Compliance Refinery in conjunction with governance specialists Faraday & Company.

Melanie Purdey, Compliance Refinery’s course facilitator, says directors of FAPs or authorised bodies are facing more scrutiny as part of the FMA's FAP licensing guidelines, and that many directors may not fully understand their licence obligations.

Purdey says Compliance Refinery's director support programme is designed to ensure directors have the knowledge and skills to meet the requirements of the full licencing regime.

Strategi

Industry training firm Strategi and the FMA are holding a free webinar on Thursday 7 April for financial advice providers who have not yet submitted their application for a full FAP licence.

Strategi says that by attending the webinar, FAPs and their owners and managers will better understand what is required and be provided with practical next steps to obtain their full FAP licence.

Southern Cross Healthcare’s has appointed Chris White as its new CEO, White has been sitting in the top chair for a few months as interim CEO.

White began with Southern Cross on the insurance side of the business in 2017. From there, he moved across to its healthcare division as Chief Operating Officer, and then to interim CEO in October last year.

For the full story on everything covered in this podcast see riskinfo nz . Co . Nz where you can also sign-up to receive our free weekly newsletter.

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Speaking during an FSC webinar that attracted more than 600 viewers, the FMA's recently appointed CEO Samantha Barrass announced the publication of an updated draft Conduct Guide for industry consultation.

She also said there will be substantial change at the organisation over the next few years, building new capabilities, and employing new staff with different areas of expertise.

Actuality - Barrass

How insurers take Covid-19 vaccination status into account when setting life and health premiums is fraught with issues, write lawyers Andrew Horne and Olivia de Pont of law firm Minter Ellison Rudd Watts.

They say rating risk based on vaccination status is not a straightforward exercise as lapsed vaccination status and natural herd immunity may need to be considered.

Partners Life has released a 'how to' video (below) explaining how financial advisers should use the latest additions to its My Underwriting Manager system – namely the Client Access to Personal Statement (CAPS) feature.

The updated version of My Underwriting Manager allows advisers working with the firm to send their clients a secure link to complete their personal statement, in their own time, and on their own device.

The company also says ANZ's chief financial officer Stewart Taylor is to join the firm as its CFO – but no start date has been announced.

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Growing your advisory business by book acquisition could mean biting off more than you can chew.

Strategi's Dave Greenslade cautions business owners not to buy a book that is so large it would be hard to contact all the new clients within 12 months.

He says the FMA expects the purchaser to undertake due diligence to ascertain the quality of the client advice records within one year of purchase.

A new advertising code came in on 1 March that means all financial advertising needs to demonstrates a high standard of social responsibility.

The code means financial advertisements should disclose all relevant information, including social media, emails, TV, radio and other platforms

Lawyers at Dentons, Kensington, Swan say the principle of social responsibility is in the spirit of the Advertising Standards Authority code and you don't have to break the rules to breach it.

Financial advisers working with Cigna are being asked to complete online courses and meet declaration requirements via its Adviser Training Hub.

Requirements include annual product recertification and declarations to help advisers stay ahead of their compliance obligations.

Cigna has a new online My Score Card tool that's connected to MBIE’s Financial Service Provider Register.

A client review call centre is being launched by The Adviser Platform to help reduce the load on busy advisers.

The company's Ryan Edwards says the service, to be launched 1 April, will demonstrate to the regulators that an adequate level of servicing is being provided to clients and improve client retention.

Fidelity Life has launched a podcast covering the key elements of its Building Better Business modules.

Each of the company’s podcasts is around four minutes long and covers topics such as complaint handling, communication, and business plans.

A new report from PWC highlights recruitment, regulations, and crime as being among the key challenges faced by New Zealand insurers.

The 15-page report – Exploring the Insurance Industry’s Top Risks – identifies a rising level of anxiety about cybercrime and the new financial conduct regime.

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Fidelity Life has completed its purchase of Westpac's life insurance business having got the nod from the regulators. The insurer now has a 17% share of the life market in New Zealand.

Details of the purchase were first released by Fidelity Life in July 2021 when it said it would acquire Westpac Life from Westpac Group for NZ$400m, and will also into a 15-year life insurance distribution arrangement with Westpac NZ.

Fidelity Life’s largest shareholder the NZ Super Fund and new investor Nigh – Tahoo - Ngāi Tahu Holdings will fund the majority of the acquisition.

The latest industry snapshot from the FSC shows life insurance covers increased by 92,000 to 4.2 million during 2021.

The data snapshot also shows the sector paid out $308 million in claims in the last quarter of 2021 and that 96% of claims made over the same period were paid.

We have a new poll running this week asking about your work-related stress levels – cast your vote...

Kiwis who act on professional financial advice are better prepared for retirement and more comfortable making big financial decisions than unadvised Kiwis, according to a new report from Financial Advice NZ.

Its Better Behaviours report shows that across every age band, advised Kiwis feel they have a better understanding of how much money they will need in retirement.

Across the board, quality financial advice has given Kiwis the tools to think about their finances in a pro-active way, says Katrina Shanks.

Asteron Life is extending the Best Doctors telehealth service to its customers with trauma recovery and cancer cover.

The service, which provides access to an international network of medical specialists and local GPs, is already available to the company’s clients with disability insurance as well as eligible insurance advisers.

And staying with best Doctors, AIA NZ is extending the Best Doctors service to financial advisers who have a relationship with the firm.

A draft version of the Insurance Contract Bill has been released for consultation by MBIE.

If made into law, the bill would introduce a range of changes that MBIE says will make insurance contracts easier to understand and fairer to consumers. However, industry feedback is being sought prior to the draft Bill has its first reading in parliament.

The value of locum advisers to help maintain business continuity when a member of the financial adviser team is away will be debated during a financial services council webinar on March 11.

Discussing the issues, risks, and solutions will be a panel made up of representatives from insurer Partners Life, law firm Dentons Kensington Swann, and Rose-will Consulting.

Financial Advice NZ launched its own financial adviser locum scheme in November last 2021.

According to Stats NZ data 1.45 million New Zealanders are paying almost $2 billion a year for private heath insurance. The country’s population sits at 5.2 million. In the last quarter of 2021 more than $386 million was paid out by health insurers, with women aged under 64 having higher value claims than men. From age 65 men claimed more than women during the same period.

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Since September 2020 Grant Willis has been overseeing the sales, products, claims and client servicing at Asteron Life. Against a backdrop of modernising the company's operations it is helping advisers get across the line when it comes to full licensing.

However, speaking to RiskinfoNZ he says the whole licensing process is still distracting advisers from doing the things they enjoy most...

Read our full interview with Grant Willis at RiskinfoNZ.co.nz

Welcome back.

Writing for Riskinfo Katrina Shanks says lockdowns have given many of us the mental and physical space to reassess almost every facet of our life – and that Covid seems to have prompted what some experts call ‘a mass redirection of priorities’.

The CEO of FANZ points to an international survey that concludes that whatever ‘material well-being’ looks like, financial considerations were top of mind for most respondents – including those in New Zealand.

Poll: New Poll – Is the FMA Right to be Worried About Rising Commission Payments?

AIA NZ is running a promotion where clients can win a share of $10,000 in Apple Store gifts cards.

The draw is open to clients who take out eligible AIA insurance and join its AIA Vitality scheme before 1 April 2022. T

Cigna has teamed up with food delivery service HelloFresh in a promotion that will see winners receive prizes worth hundreds of dollars.

Entry to the free draw is for customers who obtain a quote for a new Assurance Extra policy through Cigna’s online quote tool.

And this Thursday 17 February the FSC is holding its online Future Ready Summit. Find out more and get tickets via the FSC website at fsc.org.nz/

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Podcast

The FMA has re-stated its ongoing concerns around what it refers to as ‘commission creep’ within the financial advice sector.

Its concern was raised in the authority’s 2021 annual report – released at the end of January.

“Sales-based incentives for staff have generally been replaced with incentives that focus more on good outcomes for customers,” says the FMA.

However, it still has concerns about commissions paid to intermediaries.

When Minister of Finance Grant Robertson announced details of a proposed State-backed income insurance scheme, RiskinfoNZ sought the reactions of industry groups and of the insurers themselves.

It's early days as all concerned take a close look at the government briefing document, but we have the initial thoughts and opinions in our special report.

With the country having moved to the Traffic Light settings of the Covid-19 Protection Framework, and with Level 4 Lockdowns (hopefully) behind us, Partners Life has reverted to its original criteria for premium holiday and policy suspension claims. The company relaxed its policy on premium holidays in August 2021.

Raising the status of financial advisers to a professional standing is taking longer than expected, but Mitre Wealth Management‘s Stephen O’Connor knew it wouldn’t be as easy “as flicking a switch”.

Speaking to David Kneebone in a Financial Advice NZ This is Your Story programme O’Connor says he expects the Level 5 qualification financial advisers need will eventually be raised to a university degree requirement.

However, he says upping the professionalism of the financial advice sector has been a slow grind.

The team at nib is taking its Highway to Health seminar on the road starting February 10.

The events will feature CEO Rob Hennin who will talk about the firm’s acquisition of Kiwi Insurance. Attendees will also hear about nib’s health management programmes.

Our latest poll asks you to consider your preferences when it comes to paper-based versus electronic policy applications.

In 2022, which life insurance policy application process do you prefer:

• Electronic/online applications (52%)
• Paper-based applications (27%)
• Depends on the client’s circumstances (21%)
• Not sure (0%)

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Just over two years on from its 2019 launch, Partners Life has given advisers one more reason to use its MUM underwriting system – it now includes an option for clients to enter their information directly into the company's system.

The firm says it will save advisers time, benefit clients living in different locations to the adviser, and streamline the application process.

Poll - Our latest poll asks you to consider your preferences when it comes to paper-based versus electronic policy applications.

When AIA NZ’s CEO Nick Stanhope went on extended leave in November last year, the firm’s Sharron Botica (pictured) stepped in to run the show. However, she’s been doing more than just holding the fort.

She says Covid and lockdowns made all of us focus on the digitisation of the business. And that delivering a frictionless system for advisers is key.

Botica also says growing AIA NZ’s share of market by taking business away from competitors doesn’t help the sector grow. She says the firm is developing new products to help make the pie bigger.

Read the full interview at riskinfo NZ .co .nz

And sticking with AIA NZ, Dame Paula Rebstock has joined the board of the insurer as an Independent Non-Executive Director.

Rebstock holds a Master’s degree in Economics from the London School of Economics and has extensive professional experience in corporate and public services governance,.

Dave Greenslade, Executive Director at Strategi, says FAPs and others working across the sector should consider forming a plan of ongoing training to keep ahead of the FMA's requirements.

He suggests a professional development plan (PDP) be put in place, saying the new advice regime effectively drags all providers of financial advice up to and slightly beyond the standard expected of AFAs.

Greenslade recommends all financial advisers and nominated representatives develop and maintain a PDP.

In a column for risk info nz Financial Advice NZ's CEO Katrina Shanks provides a quick overview of where the advice community should focus their efforts this year.

The organisation has launched a tool kit for members to help them stay on track when it comes to meeting regulatory requirements ahead of the March 2023 cut-off date for fill licencing.

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