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Suncorp has delivered its results for the year to the end of June.
The New Zealand business made net profit of $261 million, up 76% on a year earlier.
Chief executive Paul Smeaton said the previous two years had been affected by weather events that cost the industry $469 million in claims.
But the life insurance business performed strongly compared to a year earlier, too.
Asteron life and AA Life, a joint venture with the AA, delivered profit of $44 million.
Smeaton said Asteron Life had submitted its formal response to the New Zealand regulators’ review of life insurer conduct and culture in New Zealand.
The Reserve Bank and Financial Markets Authority's joint report found extensive weaknesses in life insurers’ systems and controls, with weak governance and management of conduct risks across the sector and a lack of focus on good customer outcomes.
Insurers were asked to report back on what changes they would make by the end of June.
Smeaton said Asteron's response included a detailed action plan to address specific regulator feedback with a focus on delivering good customer outcomes.
“This includes addressing regulator expectations regarding staff incentives by removing all internal sales-based incentives from July 1, 2019.”
Smeaton said the next year would bring a focus on building a resilient business to meet a greater number of customer needs, with increased investment in digitising the business, improved customer communications, and improved claims experience.
| « Dealer groups face future without overrides | Asteron Life links up with health insurance companies » |
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Of course they have announced a new commission structure which allows us humble Advisers to discount our value in order to make their premiums more attractive. Maybe I am just a bit cynical?