Cyber crime
Now has never been a better time to be a cyber criminal says a former GCSB security specialist.
Speaking at a Bounce conference organised by Financial Advice NZ, and ahead of the new Privacy Act, Marc Barlow, a Consulting Partner at InPhySec says organised crime syndicates are increasingly using the internet to extort money from companies.
And cyber insurance specialist Petra Luicoli – Loo-she–ohli – says half of all the claims her firm handles are related to compromised email accounts and says two-factor authentication could have prevented them all.
Fidelity Life
Fidelity Life will stop paying initial commission on its CPI increases from March next year and has pledged to work with advisers as they adjust to this change.
However, it says renewal commission will continue to increase based on the CPI-adjusted premiums, just as it does currently. The firm says the change will have a financial impact on some advisers.
Cigna appointment
Former Sovereign executive David Haak ( Hark) has joined Cigna New Zealand has its new General Manager – Distribution.
Haak, who started his new role on Monday, was an executive at Sovereign for more than 20 years and worked at ASB group investments for five years.
KEPA Merger
Kepa and NZFSG – providers of financial advice support services – are to merge, subject to regulatory approvals. The firms say in a joint statement that settlement is expected on 30 October 2020.
If all goes to plan, the merger will create a national dealer group with more than 1,600 members, issuing $30 million of life insurance premiums and settling more than $17 billion of mortgages and each year.
RBNZ
New solvency standards for insurers will be released by the RBNZ at the end of next year with a final set of rules to be announced in late 2023, according to a new paper released by the bank this week.
The new solvency standards will be based on those applied to the banks and are being adopted to help ensure insurers can meet their obligations to customers.
In Australia
APRA is to resume its intervention of the life insurance market “…to stem ongoing heavy losses in respect of individual disability income insurance”.
In a letter to life insurers, Australian regulator APRA says that from 1 October 2020, IDII providers will be subject to upfront capital penalties “…until APRA is assured they have taken adequate and timely steps to address sustainability concerns”, the authority says in a statement.