Podcast News Wrap For 10 June 2020
Insurance firms and industry bodies say proposed changes to the Financial Markets Amendment bill are confusing and need to be changed before becoming before being made law.
More than 50 submissions have been lodged with the select committee charged with looking at the changes – its first meeting is this afternoon – Wednesday 10 June.
Among those calling for more time is Katrina Shanks, CEO of Financial Advice NZ. She says the the bill should be suspended for the foreseeable future to allow the sector overcome the impact of Covid-19.
A view echoed by Richard Klipin of the Financial Services Council, who says the bill has not been well thought through and that a number of important aspects of the bill lack detail and clarity.
Poll Result
Last week we asked if you are happy with the way insurance firms have responded to the Covid-19 crisis.
We reported that a range of initiatives have been introduced across the sector to help both advisers and consumers, ranging from higher commission rates to a relaxation of the restrictions placed on some products by insurers.
Based on the way you voted, it seems insurance companies could be doing more to help. Of the votes cast so far; 50% of you are satisfied in how insurance firms has responded; 27% are not happy and 23% say they are not sure.
Conference cancelled
Financial Advice NZ has cancelled its 2020 conference which was to be held in Christchurch. It will instead hold four virtual conference in September. The organisation’s CEO Katrina Shanks says each region will host a webinar that members can attend or watch live online.
Financial Advice NZ’s AGM will be held on 13 October in Auckland.
Mental Health
A report by Deloitte says that while New Zealand’s life and health insurers are unlikely to face a wave of Covid-19 related claims, the stress of job loss has yet to take its toll on the sector.
Shami Shearer, the firm’s Director, Actuarial & Insurance Services, says we’re likely to see an increase in mental health claims as business owners strive to keep their businesses afloat while employees suffer from reduced job security and, in some cases, reduced pay.
Artificial intelligence
The AI For Financial Insurance Services report details how artificial intelligence (AI) is helping the insurance sector by automating processes and reducing the costs of regulatory compliance.
The report says AI will be “…critical to the insurance industry’s reinvention” and concludes that AI has moved into the global insurance sector and New Zealand organisations need to pay attention.