Business Continuity Planning, and other news

Frazer Scott, chief executive of Plan B, advises small businesses to better prepare for all kinds of disruptions.

Our advice is to ensure you have a plan to operate your business securely, without access to your facilities. Testing this capability quarterly is critical. Many organisations ‘back-up’ their data, but few test it religiously – and it should be something that executive teams and boards test for as part of their business continuity plans.

Business.govt.nz in collaboration with Resilient New Zealand have created a guide detailing how to develop a sound business continuity plan (BCP), to help companies better prepare for all types of disruptions, including natural calamities.

Step 1: Identify key products or services

Step 2: Identify key internal people

Step 3: Identify key connections

Step 4: Identify essential equipment and supplies

Step 5: Consider relocation options

Step 6: Consider insurance options

Step 7: Identify who can run the business in your absence

Step 8: Keep contact details handy

Step 9: Back-up important data

Step 10: Put the plan into practice

Business.govt.nz advise you should try out your business continuity plan with relevant staff, at least once a year.

Run 20-minute stress test exercises where you give staff a scenario to plan for. Rather than fixating on the cause of the disruption – a natural disaster or power cut, focus on how to manage the consequences.

...as “no two crises are the same” a business continuity plan will change as the business evolves, so it is critical for companies to debrief staff after each test and update the plan if necessary. The plan should also be easily accessible as employees need to know what to do even if the organisation’s leaders are not available.

More daily news:

FSC webinar about 'Evolutions in Technology and Investing in NZ' research report on 9 August

FSC 'Workplace Savings Outlook 2022 with the Retirement Commission' Wellington event 2 August

Jen Latham joins Financial Advice NZ as Business Development Manager

NZ rolls out public tsunami database and nationwide tsunami evacuation map

GP shortage set to worsen

Petition to provide MS treatment funding to be presented to parliament


Upcoming Wellington Women in Insurance event, and other news

Wellington Women in Insurance is running an event that will be a chance to network and get an insight into some of the key legislative changes that may impact the insurance industry. The upcoming industry reforms event will cover the New Zealand Income Insurance Scheme, the Insurance Contracts Bill, the Natural Hazards Insurance Bill and the Financial Markets (Conduct of Institutions) Amendment.

The event will be held at 5pm on 4 August at Customhouse Quay, Wellington. There are only 30 spots available. To register, email sarah.martin@hazelton.co.nz by 29 July.

Please bring along a piece of clothing to donate to Dress for Success.

The four speakers are:

Amy Hamerton

Amy Hamerton is a Principal Policy Advisor in the Income Insurance Policy team at the Ministry of Business, Innovation and Employment. She has worked mainly in the public sector with the New Zealand Government (Housing New Zealand Corporation, the Ministry of Business Innovation and Employment, the Ministry of Health, and Ministry of Social Development) with about 13 years’ experience in public policy and previous to this she worked in service delivery roles.
Amy also has some experience in community development and disability inclusion in South-East Asia, most recently Myanmar. She holds a Master’s in Public Policy, Victoria University.

Emma Gabor

Emma is the principal of Gabor Law, a boutique law practice offering insurance and civil disputes services. Emma has experience as Claims Counsel for IAG New Zealand and in a national law firm advising leading insurance companies. Emma has recently completed a PhD, investigating what can be done to improve insurance claims for multi-unit buildings such as body corporates, cross-lease properties, and freehold townhouses.

Emma is a co-president of the Women in Insurance network in Wellington, as well as the Convenor of the Independent Practitioners Committee, a Law Society committee which supports sole practitioners in Wellington.

Jane Brown

Jane is General Counsel for the Insurance Council of New Zealand/Te Kāhui Inihua o Aotearoa where she is the subject-matter expert for liability, cyber risks and travel and is responsible for the management and administration of the industry’s Fair Insurance Code and complaints processes. Prior to joining ICNZ, Jane worked for a specialist local government insurer with responsibility for their mutual liability fund and charitable fund for underground infrastructure cover.

Jane recently completed her Master of Laws with a thesis focussed on the insurability of quasi-criminal fines and civil penalties in Aotearoa. She is also an ANZIIF Senior Associate and Co-President of Wellington Women in Insurance.

Emma Moore

Emma Moore is a senior policy advisor in the Financial Markets Policy team at MBIE, where she is the policy lead on the Financial Markets (Conduct of Institutions) Amendment Act 2022 (also known as the “CoFI” regime). Before joining MBIE in July 2021, she worked as a litigation lawyer at HM Revenue & Customs in the UK and as a solicitor at Buddle Findlay in Christchurch.

More daily news:

ACC releases breakdown of top five causes of injuries in winter

Only 36% of advisors have been granted or applied for full FAP licence

Westpac NZ appoints Reuben Tucker General Manager of Institutional and Business Banking; Dirk McLiesh Chief Risk Officer

FSC Conference announces speakers, including Grant Robertson and Jack Tame

Government advises schools they should enforce mask wearing policy for students year 4 and above

Aged care association says staff shortages have reached crisis point

Emergency Departments face mounting pressures


QPR welcomes Swati!

Exciting news over at QPR! 

We have recently welcomed Swati Khatri who has filled the position of our new Research and Customer Service superstar. 

Swati has worked in various customer care roles, most recently assisting customers and advisers over at AIA, and will be working to help maintain our product comparison database as well as assisting with all your day-to-day queries.  

We are thrilled to have Swati join our diverse team and look forward to her growth and contribution to Quotemonster :)  


Quality Product Research – Trauma: proposed rating for Encephalitis

Introduction

Hydrocephalus is a condition that develops in young children owing to the size of the brain at birth. Data of prevalence is scarce - however it has been noted that approximately 100 paediatric patients in NZ are diagnosed every year. It is also said to be the most common paediatric neurosurgical condition (statements made in 2020) with reported incidence of approximately 2-4 per 1000 live births. The condition may be present at birth (congenital) or may develop over time because of injury/disease (e.g., meningitis).

Several insurers have included a partial payment for hydrocephalus in their Trauma product and approached us for review. With the overall trauma incidence being low for this condition and consequently, given that hydrocephalus is prevalent at birth – the rating will be minute, so will be included within our Encephalitis item.

Please find our proposed rating below.   

Proposed sub-items

Encep

*We have used the male incidence score for the rating above. Female incidence for Encephalitis is 0.45%

Your feedback

We value getting your feedback on how these wordings are being applied to claims you may be aware of. Please email us with details of any recent claims to help us update our understanding.

Doreen Dutt, Research Manager, Quality Product Research Limited, researcher@qpresearch.co.nz

If you want to talk with us about research why not join us on our roadshow (scroll down for more details).


FMA releases consultation paper, and other news

The FMA has opened consultation on proposed standard conditions for licences granted under the Financial Markets (Conduct of Institutions) Amendment Act 2022 (CoFI). Submissions close 5pm on Wednesday 7 September.

The overarching principle of the CoFI Act is for registered banks, licensed insurers and licensed non-bank deposit takers to treat consumers fairly. Once CoFI is implemented (estimated to be early 2025), these institutions will need to operate under a ‘financial institution licence’ issued by the FMA and comply with the standard conditions.

The six standard conditions the FMA is proposing are:

1. Ongoing requirements – A financial institution must at all times continue to satisfy the various requirements for licences, such as directors and senior managers meeting fit and proper criteria.
2. Notification of material changes – A financial institution must notify the FMA in writing within 10 working days of implementing any material change to the nature of its financial institution service.
3. Regulatory returns – A financial institution must provide the FMA with the information the regulator needs to monitor the institution’s ongoing capability to effectively perform its service.
4. Outsourcing – If a financial institution outsources a system or process necessary to the provision of its service, it must be satisfied that the provider is capable of performing the service to the standard required to enable it to meet its market services licensee obligations.
5. Business continuity and technology systems – A financial institution must have and maintain a business continuity plan that is appropriate for the scale and scope of its financial institution service, and must notify the FMA of any event that materially impacts the operational resilience of its critical technology systems.
6. Record keeping – A financial institution must create in a timely manner and maintain adequate records in relation to its service.

More daily news:

Good returns: Happiness research finds activities promoted by wellbeing programmes are beneficial to happiness

Risk NZ postpone 2022 Risk & Resilience NZ Summit to 9-10 August

RBNZ survey shows 70% of respondents rated their relationship with the RBNZ highly

FSC announces Hon Jan Tinetti as keynote speaker at It Starts With Action Summit

Pinnacle Life awarded Most Innovative Insurance Company NZ

GPs ask employers to extend medical certificate requirement timeframe


The monster is bigger and faster than ever!

Hello erre

If you haven’t registered for our roadshow already get in quick as we have kicked off with two great sessions in Tauranga and Hamilton and we're filling the others fast!

We'll be near you on the following dates: 

Central Auckland - 2 August
Nelson - 4 August
Napier - 8 August
Palmerston North - 9 August
Wellington - 10 August
New Plymouth - 11 August
Whangarei - 15 August
North Shore - 18 August
Invercargill - 23 August
Dunedin - 24 August
Christchurch - 25 August

Click here to register to the session closest to you! 

This session is all about:

• The new features of the new Quotemonster site

• The research updates and new staff to support you

• The fastest way to produce your own unique life and health SOA

Recently our monster had a makeover and took on a much cleaner look. We introduced a bunch of new advice tools, improved navigation of the resources, added significant customisation of SOA’s for Advicemonster users and much more. We will show you recently released company reports and adviser customer experience (ACE) tools. We will work through research and technology roadmap questions with you. An interactive session on recent research reviews, plus announcements of new CPD support.

Our team is expanding and some of them will be travelling the country to share with you the enhancements we have made, and we are excited to get your views on what you want our priorities to be going forward. We are here to support your advice business grow and do better, plus help you meet your licence conditions at the same time.

We will start with the Quotemonster main session for one hour, followed by a 30 minute break with refreshments. 

Then followed by your choice of one of two breakout sessions:

Advicebridge (40 minutes): The anatomy of the deal. We examine the market for financial advice client bases and the common features of transactions. Whether you are buying, or selling, or simply keen to learn more about how managing your business to valuation metrics helps you to become stronger, bigger, and more resilient. (If you want to join us in this session please register here) or; 

Quotemonster Clinic (40 minutes): Bring along your laptop and sit down with one of our experts. Need help updating your settings? Want to include banks in your comparisons? Find out how to customise your SOA? Change your subscription settings? Bring your questions along and we will work through them together.

We look forward to seeing you soon!


Legal and regulatory update for the life and health insurance sector

20 July 2022 - Minister of Commerce and Consumer Affairs, Hon David Clark, June 2022 diary released with the following potential financial services sector related meeting noted:

  • 13 June 2022 – Financial Markets Authority (Chair and Chief Executive)
  • 22 June 2022 – FinCap (Senior Policy Advisor)
  • 23 June 2022 – Suncorp (CEO)
  • 29 June 2022 – IAG (Chair and CEO)

https://www.beehive.govt.nz/minister/hon-dr-david-clark

21 July 2022 – APRA in Australia released its Private Health Insurance Annual Coverage Survey. https://www.apra.gov.au/news-and-publications/apra-releases-its-private-health-insurance-annual-coverage-survey-1

21 July 2022 – Department of Internal Affairs published details of a class exemption from most obligations under the AML/CFT Act for accounting practices in relation to tax transfer activities. The exemption commences 15 July 2022 and is valid until 14 July 2027. The Department also advised that it will soon publish guidance explaining how this exemption impacts accounting practices. https://www.dia.govt.nz/AML-CFT-Tax-Transfer-Class-Exemption-July-2022


Quotemonster training session!

We invite you to join our next training session with Kelly, our National Partnerships Lead, which takes place on Wednesday, 17 August 2022 10:30 am-11:30 am

In this introductory session, we will go over the basics of using the website including: 

  • How to directly compare two insurers for replacement business (Head-to-Head) 
  • How to download our detailed comparison and client friendly benefit overview or heat map report
  • How to add banks and non-adviser companies to your Research comparison 
  • How to find older policy documents

...and you’ll get a look at our new website.

All Industry members are welcome to join this session so please register your interest by emailing us on info@quotemonster.co.nz Please feel free to contact us if you're also interested in a 14-day Research trial!

If you are already expert at those things, then maybe the Quotemonster live roadshow is the right next step for you - in which case please check out this blog post for your link to a session near you over the next few weeks.

Happy Crunching!


Legal and regulatory update for the life and health insurance sector

20 July 2022 – FMA released a consultation paper on proposed standard conditions for licences granted under the Financial Markets (Conduct of Institutions) Amendment Act 2022 (CoFI), with submissions closing on 7 September 2022. https://www.fma.govt.nz/news-and-resources/media-releases/fma-opens-consultation-on-standard-conditions-for-financial-institution-licences/

20 July 2022 – RBNZ published a feedback statement summarising the submissions received on the consultation on changes to the Orders in Council that set banks’ disclosure requirements and the associated assurance requirements. RBNZ also released the two proposed Amending Orders intended to  come into effect in time for disclosure statements with a reporting date of 30 September 2022. https://www.rbnz.govt.nz/have-your-say/closed-consultations/assurance-reports-on-bank-disclosure-statements

20 July 2022 - Minister of Commerce and Consumer Affairs, Hon David Clark, May 2022 diary released with the following potential financial services sector related meeting noted:

  • 5 May 2022 – FinCap (CE & Senior Policy Advisor)
  • 10 May 2022 – Banking Ombudsman (Banking Ombudsman & Chair)
  • 12 May 2022 - Cogo and Common Ledger (Chair and Founder and CEO of Cogo & CEO of Common Ledger)
  • 12 May 2022 – Tower (Chief Executive)

https://www.beehive.govt.nz/minister/hon-dr-david-clark

18 July 2022 – Media report and legal commentary that the Government granted an AML exemption for tax transfers to CA ANZ that came into effect on 15 July, effective for five years.

19 July 2022 – The Takeovers Panel announced that it had recommended to the Minister of Commerce and Consumer Affairs that amendments be made to the Takeovers Code and other capital markets legislation. The Panel’s recommendations include changes to the definition of ‘Code company’ to remove the 12-month ‘look back’ when a listed Code company is taken private and to apply this ‘look back’ to unlisted Code companies in some circumstances. The Panel has also recommended amendments to the Code to require additional disclosures about an offeror’s committed funding of the purchase consideration and to expressly provide that non-payment of purchase consideration is a breach of the Code. Other recommendations include updating how unclaimed offer consideration is dealt with and ensuring that purchasers in schemes of arrangement can acquire unencumbered title to shares on completion of a scheme.


Australia: complaints about life insurance remain very low

Complaints about life insurance remain very low. Reporting from AFCA, Riskinfo.com.au has this piece which highlights the low level of complaints about the sector.

Although the headline number appears to have risen sharply - from 2% to 3% of all complaints - when you delve into the returns the actual number of complaints about life insurers has dropped from 2115 in FY2021 to 1962 in FY2022. Some specific types of complaints within the category have bumped around quite a bit.

Although the overall picture is good, insurers should be concerned about the volume of complaints associated with misleading advertising (much higher) - particularly as this is rising at the same time as the volume of complaints about 'interpretation of product terms and conditions' is rising too. Promoting financial risk protection is a good thing, generally, but setting unrealistic expectations is just storing up problems for the future.

The complaints data is  a useful backdrop to the quality of advice review ongoing in Australia right now.