tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Monday, May 16th, 7:04PM

Insurance

rss
Latest Headlines

Insurers could do better: FSC

Insurers have work to do to better comply with their disclosure requirements, the Financial Services Council says.

Monday, July 3rd 2017, 6:00AM

The Reserve Bank has reported that many insurers are failing to meet their legal obligation to give policyholders information about their financial strength and ability to pay claims.

"The overall level of compliance was found to be well short of the minimum requirements, with 53 per cent of participants assessed as complying at a low or poor level," it said.

The RBNZ is the regulator for the sector.

Less than a quarter of New Zealand insurers were rated as performing “relatively well”.

The RBNZ concerns related to both general insurance providers and life and health insurers.

It believes that revealing the financial strength of insurers will help with market discipline by putting pressure on insurers to invest in increasing their financial strength, and result in weaker insurers charging lower premiums.

But advisers said there was no evidence that financial strength ratings made a difference to premiums. Many rely on their own claims experience with companies.

FSC chief executive Richard Klipin said good conduct and trust were a vital part of insurers’ relationship with their customers. “So the transparency and scrutiny that reports such as this bring are vital,” he said.

“It provides a valuable lens on the New Zealand insurance market and it’s clear that we collectively have work to do in lifting compliance levels with disclosure requirements.

He said his members paid out $1.16 billion in claims last year.

“The outcome of the review really reflects the complexity of compliance for insurers. As an industry we are completely committed to addressing the issues identified through the review,” Klipin said.

“It’s important to note that the compliance issues identified by the Reserve Bank were generally technical in nature and did not represent major structural problems. In fact, the Reserve Bank has explicitly said that they do not represent underlying viability issues with New Zealand insurers.

“That said, our members are now focused on working with the regulator to rectify the specific issues identified, and ensuring that standards improve and compliance obligations are met across the industry.”


RATINGS:
Southern Cross A+ (S&P)
Sovereign A+ (AM Best)
Westpac Life A+ (S&P)
OnePath Life A+ (S&P)
Asteron A+ (S&P)
Cigna A- (AM Best)
Fidelity Life A- (AM Best)
NIB A- (AM Best)

Tags: Asteron Cigna compliance conduct Disclosure Fidelity Life financial advisers FSC health insurance Life insurance nib OnePath RBNZ Reserve Bank Southern Cross Sovereign Westpac

« Kiwi company attracts $200 million global investmentGet real on disclosure »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
Insurance Briefs

Partners first life company to cloud platform
Partners Life completes first stage of the company's claims transformation journey.

Celebrating Earth Day
Insurer takes early step on sustainability journey.

Fidelity Life launches new-look claims content
Fidelity rolls out education material to help explain insurance.

Health insurer response times balloon out
Accuro says its response times have become much longer as it implements a new system.

News Bites
Latest Comments
  • Brian Gaynor dies
    “RIP - a true icon and such a humble person who helped so many....”
    2 hours ago by p simone
  • Brian Gaynor dies
    “Very sad. Condolences to him family....”
    4 hours ago by sanet.drury@gmail.com
  • Brian Gaynor dies
    “Brian was someone you would always go and listen to if he was presenting at a seminar or conference, someone you would always...”
    4 hours ago by MikeBeuvink
  • Brian Gaynor dies
    “A true champion of the industry. My sincere condolences to family, colleagues and friends. ...”
    4 hours ago by Pragmatic
  • [GRTV] AIA rolls out direct life insurance plans
    “Thanks Lifeadviser1, and it is great to see you have been having a play in the system. You are right, in the original...”
    6 hours ago by Sam.Tremethick
Subscribe Now

Cover Notes - Specific news aimed at risk advisers

Previous News
Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com
x