Decision meant to support "good customer outcomes"
AIA New Zealand/Sovereign has announced it will cease overseas recognition trips for insurance brokers beyond 2019.
According to the AIA NZ/Sovereign, the decision forms part of a wider review it is undertaking to support good customer outcomes, while also supporting best practice for advisers.
“As the largest life insurer in New Zealand, we take the responsibility of earning and maintaining the trust and confidence of our customers very seriously,” AIA NZ / Sovereign CEO Nick Stanhope said. “We are actively engaged in the current regulatory reform process and support the work of the FMA and the Reserve Bank to improve transparency and to ensure that customers continue to have every confidence in New Zealand’s life insurance sector.”
Stanhope noted they have briefed staff and advisers on the decision and suggested the reaction has been “very encouraging.” The new policy will apply from late-2019, as AIA/Sovereign has an existing contractual obligation to complete one last overseas recognition trip next year.
“Any additional adviser travel from 2019 onwards will be limited to education and training programmes that support our partners in continuing to deliver best in class services for the benefit of their customers,” the insurer added.
In April, financial institution AMP New Zealand, which also provides insurance, announced it will drop its offshore incentive programme for brokers, while insurer IAG New Zealand decided to put an end to sales incentives practice in June. In October, Partners Life revealed this year’s offshore adviser conference will be its last.