Podcast News Wrap For 12 August 2020
Insurers Remain Cautious To New Business – Report
Insurers are taking a cautious approach to new business in the Covid-19 environment, says a report by advisory, broking and solutions company Willis Towers Watson.
Its 2020 Insurance Market Update says that while New Zealand has been relatively unscathed by the pandemic from a risk benefits insurance perspective, insurers operating in the group life, income protection, and trauma markets are nervous.
The report’s authors write that economic impacts are likely to continue to lead to restructuring of business leading to job losses.
Fidelity Life
The insurance industry is suffering from low consumer trust, with both regulators and customers demanding better outcomes, says Dan Wilkinson, Fidelity Life’s chief technology officer.
He says the firms $25 million computer upgrade will not only help the firm survive but improve consumer trust and help advisers with better data.
And the Fidelity Life board has appointed financial services specialist Mel Hewitson as an independent Director.
Her appointment follows that of Nicola Greer in May. The two appointments fill the vacancies created by Carole Durbin and Anne Blackburn.
Talking of movers and shakers…
Blair Vernon has left his role as CEO, AMP New Zealand Wealth Management (NZWM), to join AMP Australia as its Acting CEO. He replaces the firm’s former CEO Alex Wade who resigned.
Jeff Ruscoe will replace Vernon as Acting CEO, NZWM.
Financial Advice NZ
Guest columnist Katrina Shanks, CEO of Financial Advice NZ, writes this week that the incoming regulatory regime – which start on 15 March next year – is an opportunity for advisers to lift disclosure from being a compliance driven obligation to an integral part of the client communication journey.
However, her organisation is pushing for changes to the Financial Markets Amendment Bill before it becomes law.
The organisation is concerned financial institutions have to consider training and supervising financial advisers. The bill will have its second reading after the September General Election.
Digital Devices Offer strategic Insight To Customers
The development of data-driven business models is impacting the entire insurance value chain, says the Swiss Re Institute.
Its report, Data-driven insurance: ready for the next frontier?, says internet-enabled devices have changed consumer behaviours and expectations, particularly among younger generations.
“As a result of digitalisation, insurers now have direct connection to their customers,” says the firm.
MDRT Global Conference
Speaking at the MDRT Global Conference last week was Todd Fithian, a US-based adviser and co-author of The Right Side of the Table: Where Do you Sit in the Minds of the Affluent?
He told viewers of the online event there are three things that are critical for advisers…
- Define your niche and market to it
- Embrace your “fiduciary” duty
- Develop the one skill that will competitor-proof your business
These disciplines will allow you to make the shift to a business that balances the qualitative with the quantitative and become an evolutionary adviser, he says.