The insurance industry is facing the possibility of radical change on both sides of the Tasman. Some of those changes spring from the same well – the Hayne Royal Commission and New Zealand’s response, the Reserve Bank of New Zealand (RBNZ)/Financial Markets Authority (FMA) review.
Some of these findings will be picked up in the fast track legislation the Government has promised to improve consumer outcomes, other changes will develop out of the rewrite of insurance contract law.
We have sorted through the different work streams to try to give you a clear look at the reform horizon.
The Hayne Report
Much of the impact of the Australian Royal Commission is being absorbed through the action plans arising from the RBNZ/FMA review, due by 30 June, and the Government’s response to date (see Commerce Minister Kris Faafoi’s comments on commission/incentive payments).
There is also scope for further influence as the Government has said it will look closely at the Hayne Final Report for potential application in New Zealand.
As we noted in our earlier commentary, The Hayne Report – be careful what you wish for, Chapman Tripp has prepared a table to enable you to navigate the 76 Hayne recommendations, together with our assessment of whether they are likely to be imported to New Zealand, the legislative or reform platform under which they might be considered, and their impact if they were to become law.
Nine of the recommendations are specific to insurance. Others apply to insurance but not exclusively – for example, those relating to culture, governance and financial advisers generally.
To arrange to receive the table, please get in touch with our contacts.