Chatswood serves the life and health insurance sector in New Zealand with market intelligence, data, and bespoke consulting services. Some of these are provided in conjunction with Quality Product Research Limited - a subsidiary that brings you Quotemonster.
We believe that good decisions are more likely to occur when we have good information about the market environment in which we operate. Intuitive leaps and creative decisions are always required, of course, but the more they are based on a firm foundation of observation, the better they tend to be.
Partners life agreed-value suite of monthly disability covers now available to more clients
Partners Life has revised its policy on monthly disability cover, expanding availability to more clients. Self-employed applicants are now able to apply for the below benefits:
Income cover – agreed value
Income cover – taxable agreed value
Income cover – agreed loss of earnings
Mortgage repayment cover (assessed on 45% of income or actual mortgage payments)
Household expenses cover (assessed on 5% of income or actual household expenses)
Some self-employed occupations are still excluded based on presenting a “significant financial risk:, including roles in some high-risk industries like tourism and hospitality and/or where significant variations in income are likely due to remuneration structure, for example those paid on commission.
Pending new applications can be updated, and may require additional underwriting specific to the change.
For cases that have been issued during the past three years, these will follow the firm’s current business processes requiring completion of:
A signed request from the policy owners
Quote for alteration outlining the changes required
Underwriting – occupation disclosure questionnaire, which can be found in My Partners Life
Underwriting – income mortgage expenses questionnaire, which can be found in My Partners Life
Where ‘financials yes’ has been selected, evidence of income will also be required
More daily news:
Tim Grafton talks about how insurers need to deal with the permanence of climate change
Nominations for Insurance Business' Top Insurance Employers in Australia and New Zealand open
Southern Cross Healthcare rollout of SafeHub (RLDatix DCIQ) wins award
Three ways to measure how fit you are
High cholesterol: the causes, the risks and what you can do about it
Partners Life invites advisers to participate in their 'Life Lessons' social media campaign
ANZ release 'Watch Wāhine Win' research
Task force makes 54 recommendations to turn around childhood immunisation rates
CAR T-Cell therapy has shown promise in treating neuroblastoma in children
Legal and regulatory update for the life and health insurance sector
29 Mar 2023 – The Digital Identity Services Trust Framework Bill completed third reading in Parliament. https://bills.parliament.nz/v/6/b00cd25e-18dd-48d7-a68a-047aa9f41fce?Tab=history https://www.beehive.govt.nz/release/govt-helps-protect-new-zealanders-digital-identities-0
29 Mar 2023 – The Financial Services Council released a life insurance consumer guide titled, “Getting the Most Out of Life.” https://blog.fsc.org.nz/guide-getting-the-most-out-of-life
30 Mar 2023 – Department of Internal Affairs released its first annual Digital Messaging Transparency Report. The report details outcomes of spam and scam investigations undertaken by DIA, including volumes and nature of reporting, and investigatory processes from January 2020 to December 2022. https://www.dia.govt.nz/Spam-Transparency-reports
30 Mar 2023 - The Commerce Commission published annual returns guidance covering the obligation under the Credit Contracts and Consumer Finance Act 2003 for every creditor under a consumer credit contract to provide the Commerce Commission with an annual return in the manner prescribed in the Credit Contracts and Consumer Finance Regulations 2004. https://comcom.govt.nz/__data/assets/pdf_file/0020/311528/Annual-returns-guidance-March-2023.pdf
6 Apr 2023 - FMA release peer-to-peer and crowdfunding: sector snapshot https://www.fma.govt.nz/library/reports-and-papers/peer-to-peer-and-crowdfunding-sector-snapshot/
6 Apr 2023 - The Government has announced that changes to the Credit Contracts and Consumer Finance Act (CCCFA) will come into force in May. The changes include:
explicitly excluding discretionary expenses from affordability testing
providing more flexibility for lenders about how certain repayments are calculated
extending exceptions from full income and expense assessments for refinancing of existing credit contracts.
https://www.beehive.govt.nz/release/government-takes-further-steps-improving-safe-access-credit
11 Apr 2023 - Privacy Commissioner announces 'Privacy Week 2023: privacy rights in the digital age' which will run from 8-14 May https://privacy.org.nz/news/forums-and-seminars/privacy-week/privacy-week-2023/
11 Apr 2023 - Deposit Takers Bill completed its first reading in Parliament. A final report was presented to the Finance and Expenditure Committee. https://bills.parliament.nz/v/6/11fa96a7-e6bd-4a53-8516-d4d26c059072?Tab=history
11 Apr 2023 - Finance Minister Hon Grant Robertson is attending World Bank and IMF meetings https://www.beehive.govt.nz/release/finance-minister-attend-world-bank-and-imf-meetings-us
FSC releases early data from their Financial Resilience Index survey
The Financial Services Council (FSC) have released early data from their 2023 Financial Resilience Index survey. This new survey will track Kiwi’s financial confidence, financial preparedness, financial literacy, job security and wellbeing, with the full results to be released on 3 May.
One of the most interesting takeaways is that the impact of recent extreme weather events seems to be prompting people to consider their financial situation and how they manage risk.
The survey reported 76% of respondents were prompted to think about how they protect themselves and their families, with 16% of people actively revieing their financial situation and 29% having spoken about their situation with their family.
The survey also found higher reported insurance levels than 2022:
39% report having life insurance (up 1%)
37% report having health insurance (up 5%)
22% report having trauma and critical illness (up 4%)
20% report having income protection insurance (up 9%)
17% report having total and permanent disability (up 3%)
Technical details of the survey giving an overview of the methods should be released with the full report on 3 May.
More daily news:
FSC 'Debt, credit and the cost of living crisis in NZ' webinar 18 April
FSC 'Good governance across financial services organisations' webinar 2 May
Suncorp NZ will provide leave entitlements to employees who want to affirm their gender identity
Poll finds 73% of global organisations hit with at least one successful ransomware attack in 2022
Unimed is looking for a secretary to the Board and CEO
nib launch new underwriting engine offering improved functionality and design
AIA Increases Interest Rate on Whole of Life Policies
The Government is reviewing the list of occupational diseases covered by ACC
RBNZ increases OCR by 50 basis points to 5.25%
8000 community nurses will start receiving pay rises over the next month
Continued calls for a Commerce Commission market study into the banking sector
Legal and regulatory update for the life and health insurance sector
11 Apr 2023 - The Government has added 32 new health sector roles to the Straight to Residence pathway of the Green List https://www.beehive.govt.nz/release/thirty-two-new-health-sector-roles-added-green-list-straight-residence-pathway
12 Apr 2023 - Minister of Finance, Hon Grant Robertson, March 2023 diary released with the following potential financial services sector related meeting noted:
• 13 Mar 2023 – Speech at ANZ's annual investor tour
• 14 Mar 2023 – Meeting with Bank CEO's
• 23 March 2023 – Speech at the ANZ-KangaNews NZ Capital Markets Forum
• 27 Mar 2023 - Meeting with BNZ Executives
• 29 Mar 2023 – Meeting with NZ Banker's Association
https://www.beehive.govt.nz/sites/default/files/2023-04/Ministerial%20Diary%20March%202023.pdf
Posted by Kelly Olsen on April 13, 2023 at 10:41 AM in Banks, Hea
QPR's Research Advisory Board
What is your research advisory board all about?
As part of Quality Product Research’s (QPR) commitment to maintaining the most extensive scope of life and health insurance product research in New Zealand, we have established a research advisory board to help us achieve a greater level of independent oversight of our research processes.
How do we determine the insurance quality score?
Our research methodology begins by evaluating the quality of an insurer’s policy definition to give an initial definition score for each item in the policy. We then weight each score according to the item’s incidence, frequency of claim, and the actual amount paid at claim time. These four factors determine the insurance quality score, which reflects the value of a benefit to the policy holder at claim time.
Who is involved in the research?
Doreen Dutt is our research manager, supported by Kim Oliver, research and customer support, and contract researchers Sara Alani, LLB, and Dyan Acosta. The research team reports to Russell Hutchinson, director of Quality Product Research.
When required, we seek advice from insurers, reinsurers, advisers, underwriters, consultants, legal advisers, and medical staff.
How do you review research issues?
When we are made aware of a research issue which requires review, we follow a standard procedure to manage the process of research evaluation and update:
1. When an issue arises, we share notification of our review on our blog/news sites with reasons why we think it requires review, and ask for feedback and claims information
2. We also ask insurers and reinsurers to help supply relevant claims data to support our review process along with any other appropriate feedback about the item under review
3. Once we’ve received feedback, we review the structure of our research by adding or deleting items and sub-items within our test database, weighting proposed guide scores to achieve a value-based rating for the item
4. We publish the proposed rating on our blog/news sites, and the rationale for change, allowing our readers to provide feedback
5. We receive and incorporate feedback accordingly
6. We finalise changes within the database and the Quotemonster website
Why do advisers sit on the research advisory board?
Advisers can provide a special insight into the research process and have several ways in which they bring perspective:
1. They operate at arms-length to the manufacturers of products
2. They often see competing products operate in the real world in claims situations
3. They understand what is important to their clients
4. They provide frank feedback about benefits that are rarely claimed on
5. They are more familiar with the application of research to a real-world advice process
It also provides an opportunity to participate in a governance structure providing some valuable wider industry experience for both us and the adviser.
At our most recent meeting, the Quotemonster research advisory board has come up with some enhancements which will make advisers’ lives easier.
Going forward QPR will give advisers the ability to have Partners Life specific injury product excluded from specific injury benefits comparisons, given the significant monthly premiums difference, with the option to ‘turn on’ the rating for specific conditions covers.
A review of the medical product claim model and amount scores is underway after initial discussion with the Research Advisory Board, who provided valuable feedback on children’s benefits and medical tourism features.
In future QPR will have functionality to easily switch from personal to business products for quoting and research.
More daily news:
ANZIIF invites video submissions for the Allianz Donna Walker Awards
RBNZ publishes discussion paper on the reasons for unsustainable house prices
Partners Life invites advisers to participate in their 'Life Lessons' social media campaign
Financial Advice NZ webinar 'FMA Update on Regulatory Returns' 26 April
ASB/IPSOS survey finds one in five NZers keep financial secrets in relationships
Study finds Kiwis widely oppose raising the retirement age and means-testing superannuation
Tips on keeping allergy symptoms under control
Posted by Kelly Olsen on April 14, 2023 at 08:30 AM in Advise
Asteron Life announces enhancements to its Employee Insurance offering
Asteron Life has announced a suite of enhancements to its Employee Insurance offering.
Adding Kids Trauma Cover as a built-in feature for all policies
Asteron Life Connected Care included at no extra cost with Income Protection. We’ve written more about Asteron Life Connected Care here.
Replacement of the existing Specific Injury Benefit and the Personal Accident and Major Burns Benefit with a new standalone Specific Injury Support Benefit
Three new Trauma diagnoses now covered, including Diabetes and Terminal Illness
Achieved the WriteMark Plain Language Standard for all Employee Insurance policies, including clarifying 22 existing trauma cover definitions and three new diagnoses to make things easier to understand.
More daily news:
Survey finds employers need to address employee stress in order to attract and retain talent
Study finds physical activity done outside better for you than exercising indoors
Legal and regulatory update for the life and health insurance sector
13 Apr 2023 - Accident Compensation (Access Reporting and Other Matters) Amendment Bill goes to select committee https://bills.parliament.nz/v/6/16c6f439-8524-4e9e-8fd9-cfac36444cb5?Tab=history
17 Apr 2023 - NZ Police Financial Intelligence Unit released “The Suspicious Activity Report” for February 2023 https://www.police.govt.nz/sites/default/files/publications/fiu-monthly-report-feb2023.pdf
Legal and regulatory update for the life and health insurance sector
8 May 2023 - NZ Police Financial Intelligence Unit released “The Suspicious Activity Report” for March 2023 https://www.police.govt.nz/sites/default/files/publications/fiu-monthly-report-mar2023.pdf
8 May 2023 - Privacy Commissioner Michael Webster gives inaugural Privacy Week Speech https://privacy.org.nz/news/forums-and-seminars/privacy-week/privacy-week-2023/high-trust-but-lacks-maturity-the-state-of-privacy-in-new-zealand/
8 May 2023 - Privacy Commissioner calls for legislative changes to NZ's privacy law https://www.interest.co.nz/personal-finance/121104/privacy-commissioner-urges-government-tighten-privacy-laws-including
8 May 2023 - RBNZ seeks feedback on proposals for collecting financial entity related data to support cyber resilience, feedback closes 3 July 2023 https://www.rbnz.govt.nz/have-your-say/2023/cyber-resilience-data-collection
10 May 2023 - The FMA has censured Aurora Financial Group Limited (Aurora Financial) for misleading existing and potential clients about KiwiSaver returns https://financialmarketsauthority.cmail20.com/t/r-l-ttjylrkd-btuitpxk-y/
Finfluencers in the news
A finance influencer, usually referred to as a finfluencer, is a social media influencer that shares financial information and expertise. Due to the nature of the medium, the financial advice given tends to be light-hearted and is often short and snappy. Advice given can range from budgeting to investing to how to buy a house. Popular NZ finfluencers include Simran Kaur, co-host and co-founder of the popular Girls That Invest podcast and Te Kahukura Boynton - The Māori Millionaire. Last year a survey by Finder found 44% of people aged under 25 got investment advice from social media and 28% got investment advice from finance podcasts.
Where finfluencers can get in trouble is when they move from talking about financial matters in a general sense (we’re all for raising financial literacy!) to recommending particular products (whether that’s specific funds, stocks, or insurance) or telling individuals what to do, then that’s likely to be regulated financial advice. They may also fall foul of disclosure requirements as they may receive financial benefits from the operation of their channels.
You can check whether someone is registered to provide financial advice by looking them up on the Financial Services Providers Register.
There’s been a lot of controversy about finfluencers recently. Interest.co.nz recently ran an article about how a TikTok video with millions of views has claimed that paying $1 a day extra on your mortgage can cut the repayment term of your home loan from 20 years to just 5 years. Unsurprisingly, the life hack turns out to be false (unless the mortgage is quite small), with interest.co.nz running to maths to debunk it. But is shows just how easily financial misinformation can reach a wide audience.
In Australia, the Federal Court has made permanent injunctions against social media finfluencer Tyson Robert Scholz, determining he had contravened the Corporations Act by carrying on a financial service business without an Australian Financial Services Licence. Scholz charged for access to online groups where he made recommendations about shares, delivered training courses and seminars about ASX-listed securities where he recommended share purchases.
In 2021, the FMA released a guide for finfluencers that covered how to talk about money online. Rob Everett, then FMA Chief Executive, said
“It’s great to see more people taking an interest and talking about financial matters online, helping others get more familiar with financial products. However, influencers do not want to find themselves caught offering advice they’re not qualified or authorised to give. It’s also important for consumers to be wary of taking an influencer’s recommendation that might not be suitable for them.”
The FMA caution consumers to be wary of what they see online, be aware that some products (particularly cryptocurrencies and derivatives) can be very high risk, to be on the lookout for scams, and to let the FMA know if they think someone is improperly giving financial advice.
More daily news:
New obesity drug tipped to become one of the top-selling drugs ever, despite costs and side effects
mySolutions, Asteron and Generate are holding roadshows in June
ANZ make after-tax cash profit of $1.107 billion in the six months ending March 31
Senior hospital clinicians have unclaimed annual leave of 1.72 million hours
Calls for more information on planning for a disabled person’s future when parents/caregivers die
Doctor details the benefits of exercise in preventing deterioration of the body and mind
FSC release Financial Resilience Index
The FSC surveyed over 2,000 New Zealanders to find their views on five key resilience indicators. Some of the key findings were:
• Kiwis are increasingly worrying about money, more often, with just under 50% of us worrying about money daily or weekly (300,000 more than last year).
• Only 53% could access $5,000 within a week without going into debt in a time of emergency (down from 59% in 2022).
• Job security has trended upwards, with 30% feeling completely secure and 33% feeling very secure in their current employment.
• More people responded that financial issues were adversely impacting their physical health, mental health, relationships and overall well-being than in 2021 and 2022.
You can read the full Financial Resilience Index findings here.
More daily news:
Insurance Business lists the top websites to help you find insurance jobs in New Zealand
Economist says misery index falling explains why households are still spending
BNZ announces after-tax profit of $805 million in the six months to the end of March
Southern Cross Healthcare introduce seven new orthopaedic robotic systems across hospital network
Webinar 'RegTechNZ: Maximising our future' 16 May
Health minister announces 24-point plan to help GPs and hospitals cope with unrelenting demand