Regulatory Alerts2018-11-29
Thematic review of life insurer conduct and culture
The Financial Markets Authority and Reserve Bank of New Zealand issued a joint review finding extensive weaknesses in the conduct and culture of New Zealand life insurers, including poor governance, inadequate risk management, and insufficient remediation of issues. The regulators identified serious risks to customers arising from weak oversight of intermediaries, misaligned sales incentives, and a lack of focus on good customer outcomes across the sector. Insurers are required to submit action plans by June 2019 to address these deficiencies, including revising incentive structures and conducting systematic reviews of their products and portfolios to proactively identify and remediate conduct risks.
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