When the new Replacement Policy Advice Standard came into effect on 1 July, it stirred debate.

The ISI promised to engage in consultation with adviser group representatives and it says significant improvements have been identified with both the brochure and form as a result.

ISI communications manager Stephen Leslie says it was clear from the initial feedback that while the principles embodied in the Standard were sound, the Association needed to improve the way it was presented to customers.  

"The intention of the consultation was to ensure these documents provided better balance and met the needs of customers, advisers and the industry."

For example PAA chairman Peter Leitch said in July of the old form "We should be telling the public about the significant amounts of money that are paid out in claims each day due to people being insured against the risks of death and disability, not just giving examples of where claims are not paid."

This is a noticeable change that has been made in the new Replacement Advice brochure, which firstly states that around 97% of all claims are accepted and paid without any question or further inquiry. It then says of the remaining 3% of claims which are investigated or declined mistakes are often made when a policy is replaced.

Stephen Leslie says the process the ISI has gone through with the various adviser representative groups has been open and honest and a lot of common ground has been found.

"The final step is to give everyone an opportunity to provide their thoughts before we launch the Replacement Policy Advice brochure and form."

The new documents have now been posted on the ISI website (www.isi.org.nz) and a link to both documents is provided on the home page under the heading "Replacement Policy Advice - Public Consultation".

ISI intends to leave the documents on the website for public viewing until Wednesday, 29 September with feedback welcomed up until 5pm on Friday, 1 October.

While the timing means the new Standard will not be in force by 1 October, ISI believes it is more important to get the process right.

"Delivering an improved process that everyone is comfortable with is worth delaying the launch by a few weeks," says Stephen Leslie.