FMA aware of but won't comment on Southern Cross benefit removal

“Thanks for the information, we are aware of the situation,” the FMA said in response to GoodReturn's questions, which included whether the regulator was investigating or if it planned to investigate.

“We generally do not comment on individual providers,” the FMA said.

Adviser Jon-Paul Hale of Willowgrove Consulting, Graeme Lindsay, who provides analysis to life and health insurance agents through his firm Strategy Financial Services and Russell Hutchinson of industry consulting firm Chatswood Consulting have all said they've only just become aware that the benefit, which previously covered non-surgical hospitalisations, had been dropped.

None of those complaining about the situation are saying Southern Cross didn't have a right to drop the benefit – the wording of the company's policies expressly allows it to do so – the issue is whether it adequately communicated the change.