10 Apr 2019

Insurance crackdown may not stamp out bad behavior: CEO

From Nine To Noon, 9:20 am on 10 April 2019
Choosing between yes or no to be insured

Photo: 123RF

As the government moves towards a crackdown on sales incentives offered by life insurance companies, the Chief Executive of one insurer is warning this may not stamp out bad behavior detrimental to consumers and could reduce the number of people with insurance.

In January, a report into the conduct of life insurance companies by the Financial Markets Authority and the Reserve Bank of New Zealand found life insurers in particular were encouraging advisers to put sales and profits ahead of customers' needs.

The report recommended that insurers remove or substantially revise their sales incentives, including high up-front commissions for insurance advisers, giving them until the end of the year to do so.

Kathryn talks with Naomi Ballantyne, the Chief Executive of the life insurer,  Partners Life.