Massey University's Michael Naylor discusses the FMA's report on insurance replacement business.
The recent FMA “Replacing Life Insurance” report has to be viewed in the context of the overall discussion within NZ over commission and regulation. This includes the MJW and NZIER reports.
Within this context it’s interesting that the FMA choose to devote its scarce resources to investigating the policy replacement behaviour of AFA/AFA’s, indicating that either, (i) they regard the poor behaviour of small number of RFA/AFA’s as a substantial problem, or (ii) the report is part of a larger public policy strategy...MORE»
Monday, July 4th, 6:39PM
Only very small number of insurance brokers are doing anything dodgy, writes David Whyte.MORE»
Thursday, June 30th, 6:00AM
Half of the insurance advisers with at least one active policy on their books were not earning enough in commission to make the minimum wage, the Financial Markets Authority says.MORE»
[UPDATED] Insurers have welcomed the Financial Markets Authority turning its attention to replacement business – but say it is incorrect that banks cannot churn customers.MORE»
Former AIG managing director and GM of AIA NZ David Whyte argues a drop in commissions won't drive advisers out - because high commissions aren't attracting them in any great number.MORE»
NZIER’s recent analysis of the NZ Life Insurance market for Sovereign Insurance purports to show that the life insurance market is shrinking, that new customers are more price sensitive than existing, and that a reduction on commissions could help reverse this, writes Michael Naylor.MORE»
Insurance premiums would fall by up to 6% if advisers’ commissions were cut by a quarter, a new report says.MORE»
One of the actuaries who prepared a controversial report into insurance commissions says he was surprised by the industry fallout from it.MORE»