Governance and Compliance

Governance and Compliance

Find out about how we meet our legal and regulatory requirements.

FMG Membership

FMG is a mutual organisation, which means we’re owned by our rural clients, known as our ‘members’.

Members have the opportunity to participate in the governance of FMG by attending and voting at our annual AGM.

To be eligible for membership, you need to have a rural risk insurance policy with us. This means you need to insure:

  • A rural item – such as irrigators, tractors, a farm building, and/or;
  • Property at a rural location.

These criteria were created alongside the Farmers’ Mutual Group Act 2007.

Once you become a member, you’ll remain a member as long as you remain a client of FMG.

 

Farmers' Mutual Group Act 2007

The Farmers’ Mutual Insurance Association (the FMIA) was formed from the merger of a number of associations incorporated under the Mutual Insurance Act 1955 (the 1955 Act). Those associations were incorporated to provide advice and other insurance to their members, being principally farmers and persons that service or support farmers.

Click here to read the full version of the Act.

 

FMG Constitution

Click here to read the FMG Constitution.

 

FMG Board Charter

The Farmers’ Mutual Group Act 2007 (the Act) and FMG’s Constitution (the FMG Constitution) confer upon the Board responsibility for Farmers’ Mutual Group’s affairs and activities.  FMG Insurance Limited is a wholly owned subsidiary governed by the Companies Act and the FMG Insurance Limited’s Constitution (FMGIL Constitution).

Click here to read the full version.

 

FMG Audit & Risk Management Committee Charter

The Farmers’ Mutual Group Board (Board) has established the Audit & Risk Management Committee (Committee) and has delegated to it the responsibilities set out in this Charter.

Click here to read the full version.

  

FMG Nomination, Remuneration & Governance Committee Charter

The Farmers’ Mutual Group Board (Board) has established the Nomination, Remuneration and Governance Committee (Committee) and has delegated to it the responsibilities set out in this Charter.

Click here to read the full version.

 

FMG Director Appointment & Reappointment Policy

The Board appointment process is governed primarily by the Farmers’ Mutual Group Act 2007 and the FMG Constitution.

In December 2011, the FMG Board adopted the Director Appointment & Reappointment Policy which provides even more governance and transparency around the appointment process and sets out criteria around the evaluation of prospective new Directors as well as sitting Directors who are required to retire by rotation.

The Director Appointment & Reappointment Policy also puts limits on Directors’ tenure. You can obtain a hard copy of the Director Appointment & Reappointment Policy by calling us on 0800 366 466 (Attention: Lisa Murray).

The overriding criteria for all existing and prospective Directors is that they must be able to meet the requirements set out in FMG’s Fit & Proper Policy, as required by the insurance industry’s Regulator, the Reserve Bank of New Zealand.

Click here to read FMG's Fit & Proper Policy.

 

FMG Code of Ethics

This Code of Ethics sets out the ethical and behavioural standards expected of FMG’s directors, employees and contractors.

 Click here to read the full version.

 

Solvency Margin

As an insurer licensed under the Insurance (Prudential Supervision) Act 2010 FMG Insurance Limited is required to disclose information with regards the solvency position.  The solvency information at 30 September 2017 is:

Actual Solvency Capital

 $204,415,000

Minimum Solvency Capital

   $90,132,000

Solvency Margin

   $114,283,000

Solvency Ratio

                2.27

Fair Insurance Code

The Fair Insurance Code is a set of principles that aim to improve the standard of practice and service that member companies provide to their customers. As a member of the Insurance Council, FMG complies with the Fair Insurance Code.

For more information on the Fair Insurance Code please click here.