[The Wrap] Just when you thought there would be less there's more.
About a year ago a senior executive at a life insurance company told me we have too many life insurers in New Zealand and there needed to be more consolidation.
Saturday, March 15th 2025, 10:11AM
Well guess what? Exactly the opposite has happened.
This year the life insurance sector is going to get way more competitive; but that's not all.
First up we have a new player, PPS Mutual, is preparing to launch in New Zealand. They are yet to get a licence from the Reserve Bank but they have recruited some top talent and have been out and about talking to advisers.
While it will be a niche operation it will be targeting high value clients.
Recently nib has launched its Life and Living range which is built on the life insurance business acquired from Kiwibank some years ago. The health insurer plans to be a serious player in the life insurance market.
While its pricing and commission structure is yet to be revealed, Good Returns understands the commission structure will be attractive to advisers. Already we know its products stack up well against competitors - they have to as there is no point bringing sub-standard products into a competitive market place.
Then to add another ingredient to the mix there has been serious leadership changes in the life insurance space. In just over a year we have had new chief executives at Fidelity Life, Partners Life and soon, Chubb.
One thing we know, no matter what the business, when a new boss comes in things get shaken up. Just look at Fisher Funds at the moment. Simon Power stepped in as CEO last year and the business is being changed significantly.
This is a bit like those TV commercials. Wait there's more!
Resolution Life's purchase of Asteron has been completed and to add a twist Resolution Life has been sold to Japanese giant Nippon Life. Will be be business as usual for Asteron or will there be a push for more growth?
And then to add some intrigue to the mix we keep hearing rumours that Fidelity's two biggest shareholders, NZ Super Fund and Ngāi Tahu Holdings may want out. Whether there is any truth to this is an unknown, but the fact that it is being talked about by advisers may influence where they place business.
One thing though is there are no shortage of options.
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