Category: MIL-Submissions

Source: CoreLogic

Source: University of Auckland (UoA)

What happens when you take individuals from around the world, confine them to a prison-like environment in the middle of a war zone, and expect them to work and live together?

This was one of the questions explored by University of Auckland Business School doctoral candidate Sam Mackay in his thesis ‘Sexcapades, drug hazes and terrorist attacks: exploring expatriate work and well-being in fortified compounds in a hostile environment’.

Mackay, who spent a year and a half in Kabul between 2018 and 2019 as a senior consultant for the United Nations, encountered a surreal environment within his compound. The “crazy, intense experience” inspired his doctoral research.

Drawing from in-depth interviews with 36 expatriates, including three New Zealanders and two Australians, Mackay’s study reveals how fortified compounds, designed to protect employees in hostile environments, introduced additional stressors that compounded expatriates’ already challenging experiences in war-torn Kabul.

“I found that although they were designed to shelter inhabitants from the risks outside, compounds generated additional threats on the inside— particularly in the inescapability of toxic bosses and colleagues, sexual harassment, racism and social exclusion.”

For expatriates working and living in fortified compounds in Afghanistan’s capital, life was a mix of extreme monotony and extraordinary stress, blending overwork with an intense, often toxic, living environment.

These expatriates, most of whom worked for aid and development agencies, shared deeply personal insights with Mackay about life inside different compounds between 2014 and 2021.

Many expatriates described compound life as “oppressive” and “claustrophobic,” with the monotony of daily routines leading one interviewee to label it a “pathetic… repetitive life.”

With bedrooms sometimes mere steps from offices, the line between professional and personal time practically disappeared, says Mackay. Many expatriates felt overworked, describing a culture that expected 24/7 availability.

While the compounds were meant to provide safety, they exposed workers to new dangers inside.

Seven out of 18 of the female expatriates interviewed experienced sexual harassment, and several more expressed feelings of unsafety.

Racism was another troubling theme, with some interviewees experiencing discriminatory behaviours that exacerbated the difficulties of life in the compounds.

With limited opportunities to leave, expatriates formed cliques for social support, but these groups often created divisions.

Meanwhile, most interviewees said privacy was difficult to achieve, and the close quarters fuelled gossip, which became a source of both entertainment and tension.

These dynamics turned the compounds into what Mackay calls hostile environments within a hostile environment.

Faced with these challenges, expatriates developed various coping strategies.

On the healthier end of the spectrum, some turned to exercise, meditation or gardening. But for many, escapism took the form of binge drinking, drug use, and what several interviewees called “sexcapades”—casual sexual encounters.

“Some people become hunks, some people become monks, some people become chunks, and some people become drunks,” one participant said, capturing the diverse and sometimes destructive ways people in the compounds managed their stress.

Many interviewees reported conflicts with colleagues and managers, exacerbated by the confined nature of the compounds. Mackay says some of their experiences were akin to living in a “total institution,” where the organisation dictated every aspect of life, work, sleep and recreation.

Beyond the bubble

Mackay’s research highlights the paradox of fortified compounds. While designed to shield employees from external threats such as terrorism, they also became targets for attacks and generated internal dangers.

One interviewee said: “The thing that was killing me most was not the Taliban… it was the toxicity of the environment and the culture.”

Fortified compounds remain a standard operating practice for many international organisations working in conflict zones and Mackay says decision makers should consider the appropriateness and sustainability of placing employees in such environments.

“My research shows the limits of compounds as an effective strategy to protect employees in hostile environments and I hope the findings will contribute to improving expatriates’ experiences in these extreme contexts.”

Source: Reserve Bank of New Zealand

12 December 2024 – The Reserve Bank of New Zealand – Te Pūtea Matua has today issued the second amendment to the Interim Solvency Standard 2023, which will take effect for all relevant insurers from 1 March 2025.

The Reserve Bank is responsible for the prudential regulation of New Zealand’s insurance sector, which includes setting rules and regulations to ensure the country’s financial system remains resilient.

A review of the existing insurance solvency standards began in mid-2020, partly in response to the new accounting standard for insurance contracts (NZ IFRS 17), culminating in the release of the Interim Solvency Standard 2023.

As the standard was applied during the course of 2023 we identified some issues and since then have conducted a robust consultation process to restore the original policy intent. The Interim Solvency Standard Amendment Standard 2024 is designed to achieve this, without introducing new policy or increasing capital requirements beyond those originally intended.

“This amendment represents good regulatory stewardship. It ensures that the Interim Solvency Standard is now fit for purpose, balancing the need for clarity, stability, and providing a strong framework for insurers while preserving the original policy intent,” Deputy Governor Christian Hawkesby says.

“By addressing key technical areas, we have taken the necessary steps to ensure the solvency standard continues to meet the needs of the industry and remains aligned with the evolving financial landscape.”

A feedback statement has been published alongside the amendment, outlining how stakeholder input has shaped the final amendment.

“We are grateful to the industry for its active participation throughout the consultation process. Their valuable feedback has played a pivotal role in refining the amendment and ensuring that it addresses the core needs and concerns of stakeholders,” Mr Hawkesby says.
 

Background notes

What is an insurance solvency standard?
Solvency standards set out a common method for insurers to measure their risks and ensure they have enough capital to absorb significant losses before policyholders are affected.

We set solvency standards tailored to the New Zealand market but also factor in international comparability where appropriate.

Why did the Reserve Bank launch its solvency standard review?
The Reserve Bank initiated the review of the existing suite of insurance solvency standards to address the new accounting standard for insurance contracts (NZ IFRS 17) and to modernise the regime.

What are the key changes that have been made?
The second amendment has addressed remaining issues relating to the structure of the solvency regime and handling of NZ IFRS 17.
Key changes include:  

Ensuring that sufficient capital is set aside against pricing risks.
Ensuring that capital is set aside against credit risk on bonds.
Ensuring that pre-paid reinsurance premiums fully count towards solvency capital.
A series of clarifications of interpretation.

What has the feedback been from the insurance industry on this consultation?
Overall industry generally welcomed the proposed redraft. We received eight responses, including four from industry and professional bodies, and four from insurers. We thank stakeholders for their valuable feedback. Our feedback statement summarises the submissions we received and explains our response in detail.
 
How will these changes affect consumers’ insurance premiums?
The changes are unlikely to impact premiums, as we believe insurers are already holding adequate capital and have had sufficient time to align with the original policy intent. While the adjustments are aimed at improving market stability, they are not expected to result in higher costs for consumers.

More information

Review of the Insurance Solvency Standards: https://govt.us20.list-manage.com/track/click?u=bd316aa7ee4f5679c56377819&id=95d8d438a5&e=f3c68946f8

Source:   Finance and Mortgage Advisers Association of New Zealand (FAMNZ)

The head of New Zealand’s peak body representing mortgage advisers has been named in a globally respected annual list of the World’s 100 best mortgage leaders.

Country manager of the Finance and Mortgage Advisers Association of New Zealand (FAMNZ) Leigh Hodgetts’ was included in the prestigious ‘Global 100 report’ which included industry figures from the USA, UK, Canada, Australia and New Zealand, who “are making a positive difference and helping drive change across the industry.”

The list is produced each year by a group of mortgage publications from across the world, and is finalised after an exhaustive research study spanning four months to identify and showcase the industry’s top performers.

Ms Hodgetts, the only Kiwi on the list from an association or peak body, said the honour reflects what FAMNZ has been able to achieve since launching at the start of the year.

“Mortgage advisers and the service they provide have been misunderstood by many Kiwis, and I feel that even in the short time we have existed, we’ve been able to highlight the benefits to consumers by using a finance or mortgage adviser.”

She also said that mortgage advisers were not exclusively represented before FAMNZ.

 “There are many different types of advisers and this led to confusion by consumers.”

Ms Hodgetts has spent much of the year not only raising the awareness of mortgage advisers, but meeting with the Commerce Commission, FMA, and lenders to increase competition in the lending sector.

This work was acknowledged by Chris Sweeney, managing editor for special reports at Mortgage Professional America, Canadian Mortgage Professional, Mortgage Introducer, Mortgage Professional Australia, and NZ Adviser.

“Leigh beat off a lot of top professionals to earn her place in the Global 100,” Mr Sweeney said, adding that those who made it “were recognised for leading within their company, offering education to others and championing key issues to carry the mortgage sector into a new era.”

Prior to her appointment at FAMNZ, Ms Hodgett’s held senior roles at Astute Financial Management NZ, ANZ, BNZ and more recently with Financial Advice New Zealand. She also spent time with the Financial Markets Authority as manager, retail operations.

Source: NZ Drug Foundation Te Puna Whakaiti Pāmamae Kai Whakapiri

New wastewater testing results showing a significant increase in methamphetamine and cocaine consumption demonstrate a need for urgent action to prevent harm, says the NZ Drug Foundation Te Puna Whakaiti Pāmamae Kai Whakapiri.

National Drugs in Wastewater Testing Programme results released by NZ Police today show methamphetamine consumption in the third quarter of 2024 was over double the average quantity consumed per week over the previous year.  

NZ Drug Foundation Executive Director Sarah Helm says the recent increase represents the highest volume seen since the wastewater testing programme was established nationally in 2018.  

“We aren’t aware of an increase in the number of people using methamphetamine, so this big uptick likely represents a similar amount of people using larger quantities of methamphetamine,” she says.

“That means we are expecting to see more acute harms, such as hospitalisations from overamping / acute toxicity, heart health impacts or psychosis.”

Wastewater testing data shows the volume of drugs consumed within a given period but doesn’t show how many people are using that drug or how they are taking it.

Cocaine consumption is also at an all-time high, with the last quarter’s consumption almost twice (1.86 times) as high as the previous year’s average.

“Recent studies have shown an increase in the number of people consuming cocaine in New Zealand over the past couple of years. Cocaine is considered among the more addictive substances. It wears off quickly, and has a compulsive redosing impact making it harder for people to manage their use.”

Helm says the cause of the increase is largely down to international supply, with a significant increase in cocaine production globally, and more efficient supply chains of methamphetamine. She says the United Nations Office on Drugs and Crime had predicted this growth.

“Action is needed urgently to gear up harm reduction, addiction and acute healthcare services for an increase in need.”

But she says today’s release also shows evidence-based measures to protect the community haven’t had the right level of support.

“We want to see an investment in the rollout of Te Ara Oranga nationally, which we have been calling for now for many years,” says Helm.

“It is also beyond time to look at our drug laws, which have demonstrably failed. Since 1975, our drug supply has exponentially increased, become terrifyingly more potent and toxic, while our drug laws have prevented harm reduction and overdose measures by making them illegal.”