What was the result?
96.1 percent of members voted to confirm the passing of the motion from the first Special General Meeting held on 30 October. 92.8 percent of members voted in support of the Proposal in the first Special General Meeting. This means that the required 75 percent threshold was met in each vote.
Why did we need a second Special General Meeting?
Our rules as a mutual society and the provisions of the Industrial and Provident Societies Act 1908 requires members to approve the proposal at two Special General Meetings – the first was held on 30 October, the second on Monday 20 November.
The proposal required the support of 75 percent of Accuro members voting at both SGM.
What happens next?
A portfolio transfer application will now be made to the Reserve Bank of New Zealand (RBNZ), a process that is likely to take until early next year.
Work will also start now on planning for the transition, but implementation will not begin unless the RBNZ grants approval. We can’t progress further until RBNZ approval is granted.
In the meantime, it is business as usual for the Accuro team and our members.
What happens if the RBNZ do not approve the transfer?
Accuro will continue to operate as it does now. However, we will need to look at other options to address the challenges of being a small insurer operating in the current and future environment.
As a member-based society we need to ensure we are financially strong and resilient, and this has been a key driver in developing the current proposal. Having bigger scale will allow us to remain responsive to changing market conditions and affordability challenges in the health care space and provide more options to develop new products and services.
What new opportunities does this proposal offer?
As the cost of healthcare services and demand for those services increases, we believe that the scale provided from being part of a larger entity provides the best opportunity to meet the challenges of increasing healthcare costs and premium affordability, and deal with unexpected operational and financial shocks that might occur.
The bigger scale and financial strength of the combined entity also means we will be in a better position to develop new products and services and continue to innovate in the future.
What changes for me – will there be any change to member benefits?
In practical terms, members won’t notice much, if any, change.
The Accuro brand will continue, and you will continue to receive the same cover and benefits as defined by your existing Accuro policy, with UniMed as the insurer. Once the Portfolio Transfer is completed, you will become a member of UniMed which, like Accuro, is an Industrial and Provident Society.
Is Accuro being taken over?
No. This is a merging of resources and capabilities. The proposal has been jointly developed by Accuro and UniMed. It is a genuine ‘meeting of the minds’ creating a more sustainable and resilient organisation that benefits the members of both societies.
While Accuro as an entity will ultimately cease to exist after the Portfolio Transfer, the Accuro brand will continue when the two organisations are combined, and you will continue to receive the same cover and benefits as defined by your existing policy.
What is a portfolio transfer?
A portfolio transfer is a transfer of all rights and obligations of one insurer to another, so that the policyholders continue to have the same terms and conditions as originally agreed. As part of this process, all of the assets and liabilities transfer from one entity to another – in this case from Accuro to UniMed.
This is why, in a day-to-day sense, members won’t notice any change. Your cover and benefits as defined by your existing policy remain intact. Once the transition is completed, the Accuro legal structure will be wound up and everyone will become members of UniMed.
Why is Accuro becoming part of UniMed and not the other way around? Why not create a new organisation?
A Portfolio Transfer to an existing entity is a much easier and more cost-efficient way to implement a change of this type. Creating a new entity is more expensive from a brand and regulatory perspective and would have required members of both societies to agree. We don’t believe the costs involved were in the best interests of the members of either society.
UniMed is a larger society than Accuro, with significantly more assets. As at their last balance dates UniMed held net assets of $155m, compared to $11.8m for Accuro. UniMed also has a stronger Financial Strength Rating. It makes sense therefore, and is in the best interests of members, for Accuro to become part of UniMed. Importantly however, the Accuro brand remains, as does your existing benefits and cover as defined in your existing policy terms and conditions.