Financial Markets Conduct (Conduct of Financial Institutions – QBE Insurance (Australia) Limited) Exemption Notice (No.2) 2025

The Financial Markets Conduct (Conduct of Financial Institutions — QBE Insurance (Australia) Limited) Exemption Notice (No. 2) 2025 (Notice) exempts QBE Insurance (Australia) Limited (QBE), for 5 years from the requirements under the Financial Markets Conduct Act 2013 (the Act) to:

1. be licensed as a financial institution under section 388(ca) of the Act; and
2. comply with subpart 6A of Part 6 of the Act, which regulates the conduct of financial institutions.

The broad effect of the exemptions is that QBE does not have to be licensed or comply with requirements designed to ensure that financial institutions treat consumers fairly in respect of relevant services provided in relation to its aviation policies. 

The exemptions are granted on conditions that require QBE to give certain information to a person who enters into an aviation policy for personal use including that QBE has been granted an exemption from requirements under the Act to be licensed as a financial institution and to treat consumers fairly  and that provision of the aviation policy, and any disputes, will primarily be regulated by the laws of an overseas jurisdiction and not New Zealand law.  QBE must also explain any steps it will take to ensure that such a person is treated fairly, and how that person can lodge a claim or make a complaint.

The key reasons for granting the exemption as set out in the Statement of Reasons in the Notice are:

• The exemptions support continued access to a specialist insurance product typically provided for commercial purposes and in circumstances where there is a limited consumer market for such insurance in New Zealand that is only serviced by overseas insurers. The exemptions ensure continued access to aviation insurance for New Zealand consumers.  
• The exemptions also support a level playing field and consistency of treatment for QBE with other overseas licensed insurers that also provide aviation insurance but are not licensed insurers in New Zealand and therefore not subject to the CoFI regime (with the associated compliance costs).  The exemptions recognise that, but for QBE’s separate commercial business in New Zealand for which it has obtained a prudential licence as an insurer, it would not be a ‘financial institution’ that is required to comply with the CoFI regime when providing aviation insurance to New Zealand consumers from overseas. 
• Given aviation insurance provided by QBE is governed by overseas law and QBE is an Australian-licensed insurer regulated by the Australian Prudential Regulation Authority, the costs of compliance by QBE with the CoFI regime to enable provision of this single product would outweigh the benefits for a small group of consumers who are likely to be relatively sophisticated or well-resourced.
• Conditions will ensure that consumers acquiring aviation insurance for personal use are  informed that provision of the aviation policy, and any disputes, will primarily be regulated by the laws of the overseas jurisdiction specified by QBE and not by New Zealand law, that QBE has been granted an exemption from requirements under the Act to be licensed as a financial institution and to treat consumers fairly, of any steps QBE will take to ensure any dealings or interactions with the consumer are handled in a manner that treats that person fairly and how a consumer can make a claim or lodge a complaint.  In these circumstances, granting the exemption supports the informed participation of New Zealand consumers in being able to access a specialist overseas insurance product without unnecessary barriers, inconvenience and costs.  
• The granting of the exemptions is therefore desirable in order to promote the purposes of the Act, specifically to promote and facilitate the development of fair and efficient financial markets, avoid unnecessary compliance costs, promote confident and informed participation of consumers in financial markets, and promote flexibility in the financial markets.
• Given the exemptions only apply to a single type of insurance policy that is a specialist product provided by QBE to a small number of individuals in New Zealand who acquire the product for personal use, the FMA is also satisfied that the exemptions are not broader than is reasonably necessary to address the issues that gave rise to them. 

Download Financial Markets Conduct (Conduct of Financial Institutions – QBE Insurance (Australia) Limited) Exemption Notice (No.2)  2025 [PDF 272KB]