FMG News

Proposed changes to Farmers' Mutual Group Act

As a policy holder and member we wanted to advise you of some proposed changes within FMG and invite you to respond with any questions you may have - your feedback is always valued and appreciated.

We invite you to read the proposed new Farmers Mutual Group Act Farmers Mutual Group Act.pdf(124.25 KB)

If you have any questions or comments, go to Feedback Form

Please ensure that you provide any comments or questions to us by February 28, 2007

If you would like a printed copy of the proposed Act, please call us on 0800 366 466.

Background

FMG has a proud history developed over 100 years ago with the establishment of the Farmers Mutual Associations. Though the face of FMG has changed over the years, mutuality remains the core of our identity. As a mutual we re-invest any profits into the business so they benefit all of FMGs members.

FMG is governed by the Mutual Insurance Act 1955 and may be administered under the Farmers Mutual Group Act 1998. The Mutual Insurance Act 1955 is now outdated and restricts the products and services we can offer. Due to these restrictions FMG is proposing to introduce a new Act that will allow us to operate more efficiently in the modern business environment. The proposed new Act will remove FMG from the jurisdiction of the 1955 Act and repeal the 1998 Act. This will allow us to better meet our members’ financial services needs and expand our ability to offer new products and services.

The new Farmers Mutual Group Act will be a very positive development for FMG, our members and policy holders and our staff as it will not only preserve and enhance our mutuality but also will:

Require us to be more accountable to our members through mandatory corporate governance requirements;
Enable us to offer a more diverse range of services; and
Allow us to offer more competitively priced products.
Our transition to the new Act will not, in any way, disrupt our operations, our members or our staff.

Thank you for your ongoing support.

Yours sincerely,

Peter Jensen Gordon Smith

Chairman Chief Executive