Which QFEs in FMA's sights?

When the Financial Markets Authority released its report this month into QFE replacement insurance business processes, it said it was considering possible sanctions against three.

Wednesday, July 25th 2018, 10:00AM

by Susan Edmunds

There were 11 involved in the research but the FMA would not name the ones it was worried about.

Director of regulation Liam Mason said the regulator would engage with them before considering its next steps, which could include fines.

Some providers were quick to claim they were one of the two the regulator was most impressed with.

Good Returns asked all of those involved whether they had been told further investigation was likely.

AMP:

"We have been advised by FMA that they have no further questions of us."

ANZ:

"We’ve not had any formal notification to that effect from the FMA."

Asteron Life:

"Asteron Life is committed to lifting industry standards and improving outcomes for customers, and we support any regulatory initiatives that help achieve this. As the FMA is leading this specific piece of work we recommend you talk to them about their findings and any next steps."

Bank of New Zealand:

"BNZ has had no indication from the FMA that it wants to look into our replacement practises any further."

Cigna Life:

“Cigna welcomes the FMA report on QFE insurance providers’ replacement business practices. We are committed to doing the very best for our customers by continuing to provide insurance solutions that meet their individual needs. I can confirm that the FMA has indicated that no formal action is to be taken with regard to Cigna’s business processes.”

Farmers' Mutual Group:

"Following its review, the FMA outlined that it was satisfied with the way we advise and support clients around replacement businesses and they’re not looking to follow up with us. We’re pleased with this outcome as it further emphasises our commitment to help ensure clients are fully informed about their insurances."

Medical Assurance Society:

“MAS is not one of the parties contacted by the FMA. We have not received any advice on the matter and do not expect to.”

Partners Life:

Naomi Ballantyne said she hoped hers was one of the two QFEs that were found to have high-quality internal processes and policies.

Sovereign:

“As stated in the report, the FMA will soon be providing all QFE insurers with report feedback. We look forward to receiving that information in due course. Sovereign and AIA New Zealand welcome the report by the Financial Markets Authority and will consider its findings carefully to ensure the design of our replacement business practices continue to deliver good customer outcomes.” - Kristy Redfern

AA Life:

"The FMA has given no indication of any action against us."

Westpac:

"We participated in the Financial Market Authority’s thematic review of the life insurance replacement business and will continue to engage with them as part of our ongoing relationship."

Tags: Churn QFE