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.
Quotemonster online roadshow confirmed!
The Quotemonster team have just spent four weeks on the road visiting 15 towns seeing hundreds of advisers. We have received so much great feedback and requests for an online one for those who couldn’t make it.
So now is your last chance to see what all the hype is about. Our online session will be held Wednesday 23 August at 9.30am.
9.30am - 10.30am - Presentation and Demonstration ✅
10.30am - 11.00am - Q&A ✅
We will be covering new tech and new tools:
- New comparisons
- New AI tools to make your life easier
- New ways to make your advice process better, safer, and quicker
Presented by Aneel Ravji, Kelly Pulham and Russell Hutchinson.
Click here to register: https://zoom.us/webinar/register/WN_OuTZihV9TY-MnmMxqkWw6w#/registration
Legal and regulatory update for the life and health insurance sector
14 Aug 2023 - The Insitute of Directors made a submission on the FMA's proposal to provide a one-month exemption on the requirement for climate reporting entities (CREs) to include climate statements in their annual report, highlighting both our support for the use of exemption powers by the FMA and ongoing concerns around timing, assurance impacts, and potential scope expansion. https://www.chapterzero.nz/news/submission-on-climate-related-disclosures-timing-challenges/
16 Aug 2023 - Clare Bolingford's speech on building consumer confidence to the FSC Conference is published
https://www.fma.govt.nz/library/speeches-and-presentations/speech-by-clare-bolingford-to-the-financial-services-council-conference-2023/
17 Aug 2023 - RBNZ's latest Financial Markets Statement confirms the pricing of the Reserve Bank’s standing facilities and ESAS accounts. https://www.rbnz.govt.nz/hub/news/2023/08/reserve-bank-financial-markets-statement
The role of FAPs in building consumer confidence in the professional advice sector
On Wednesday I had the pleasure of listening to industry professionals discussing ‘The role of FAPs in building consumer confidence in the professional advice sector’, a lunchtime event sponsored by Chatswood Consulting, at the Financial Services Council's Building Consumer Confidence Conference.
Chatswood Consulting would like to extend our thanks to the speakers on the panel for their time and sharing their insights with us:
• Michael Hewes - Director of Deposit taking, Insurance & Advice, FMA
• Susan Taylor - CEO, FSCL
• Hannah McQueen - Author & Founding Director, AdviceFirst / Enable.me
• Ryan Edwards - Managing Director, The Adviser Platform
• Trecia Brown - Head of Customer Outcomes, New Zealand Financial Services Group
Michael spoke about how we have 1407 licenced FAP’s, and how the FMA has around 40 new licences on the go at any time. He mentioned that as advisers you might be helping vulnerable people and to try and make communications as easily understandable as possible, everything from making sure the font size is large enough to be easily read to using simple language.
Trecia spoke about how we need to use systems and processes to keep customer data safe, keep our language positive, build a risk aware culture and how we can manage complaints and use them to improve service. Trecia also spoke about the need to work together as an industry to promote the value of advice.
Ryan spoke about a shift in language from compliance to governance. This helps to change our view from one of merely achieving a base level of compliance to a wider vision of compliance assurance, and leadership by using customer focused principles to guide development of a culture – more like ‘how we do things here’ rather than meeting an externally imposed requirement.
Susan spoke about how we should be talking with customers about our complaints processes and how we have an independent, external complaints process before there’s ever a cause for complaint, so we can build confidence that should anything go wrong customers know what to do about it and are confident it will be handled fairly and well. Susan recommends that advisers put themselves in the shoes of the reader of their communications – would they understand it? Will it have jargon in it they may not understand? Susan mentioned the possibility of using alternative communication forms, such as videos, to help get your message across clearly.
Hannah spoke about how when you have a product you’re proud of you have to be able to articulate it to customers in a way they can understand. It was interesting to hear her expand by talking about ways to track how well the client is on track: are they achieving what they set out to achieve in the plan? Keeping these in view, checking in, and seeing how to course correct to achieve them is a good guide to ensuring they stay customer focused.
More daily news:
Official Cash Rate remains unchanged at 5.5%
All Covid-19 requirements, including 7-days mandatory isolation, removed
The Companies (Directors Duties) Amendment Act 2023 is now law
The controversial Companies (Directors Duties) Amendment Act 2023 took effect on 7 August 2023. The Act adds an additional section to clarify section 131 of the Companies Act 1993, saying that directors may consider a wide number of factors other than financial gain while making decisions.
The original bill listed five non-exhaustive environmental, social and governance (ESG) factors:
(a) recognising the principles of the Treaty of Waitangi (Te Tiriti o Waitangi);
(b) reducing adverse environmental impacts;
(c) upholding high standards of ethical behaviour;
(d) following fair and equitable employment practices; and
(e) recognising the interests of the wider community.
However, the select committee removed the reference to the ESG factors and the final wording is “To avoid doubt, in considering the best interests of a company or holding company for the purposes of this section, a director may consider matters other than the maximisation of profit (for example, environmental, social, and governance matters).”
More daily news:
FSC publish their spotlight on Life Insurance and spotlight on KiwiSaver as at 30 June 2024
AMP NZ's net profit after tax was A$17 million during the first six months of 2023
mySolutions webinar 'The Value of Financial Advisers ' 23 August 9am
Ultra-Processed Foods and their negative impact on health
Ultra-processed foods (UPFs) are getting a (deservedly) bad rap. Often high in fats, sugar and/or salt, they are energy-dense and nutrient-poor. They have generally undergone intense processes (like high-temperature extrusion or hydrogenation) and usually contain food additives and/or industrial ingredients like colours, artificial flavours, emulsifiers and preservatives. If you don’t recognise some of the ingredients on the label as food, then it’s likely to be an UPF. They are manufactured to be cheap, convenient and have a long shelf life.
They’re ubiquitous in our food chains. Walk the aisles of your local supermarket and so much of what is on the shelves can be considered a UPF. They can be foods mistakenly considered healthy (flavoured yoghurts, cereals) to products we all know aren’t good for us (here’s looking at you, fizzy drinks and frozen pizza). Some estimates have found more than half our diet is now composed of UPFs.
During a cost of living crisis, UPFs can often be a cheap, quick way of filling bellies – not everyone can afford to avoid them or has the time to cook meals from scratch every day.
So why should we limit our intake of UPFs?
In a 2020 review of 43 studies on UPF consumption and health outcomes, 37 studies found at least one adverse health outcome. There’s increasing evidence linking UPF intake and chronic conditions, in particular obesity, but also cancer and depressive symptoms. Studies have found that people who consume more UPFs have higher risks of cardiovascular disease, coronary heart disease, and cerebrovascular disease. Studies following large groups have worrying conclusions
2019 BMJ study of more than 105,000 people followed for five years found that for every 10% increase in the amount of ultra-processed foods participants ate, their risk of heart attack or stroke went up by 12%. And another 2019 BMJ study, this one involving almost 20,000 people followed for 10 years on average, found that participants who ate more than four servings of ultra-processed foods per day had a 62% higher risk of dying during the study (from any cause) compared with those who ate two servings per day.
There’s evidence that UPFs are very addictive. They’re engineered to be hyper-palatable so you want to eat more of them. Vast amounts of money are spent by food manufacturers, fine-tuning formulations to find the best taste. Research has found some UPFs can elicit cravings, loss of control and an inability to cut back. There’s also increasing evidence that a diet high in UPFs leads to increased energy intake and weight gain.
Even the packaging can be a concern, with one study finding higher consumers of UPF had higher urinary concentrations of phthalates and bisphenols that may have migrated from the food packaging.
With UPFs being compared to other public health crises like tobacco and opioids, some groups are calling for public health interventions that go beyond education, saying that UPFs meet the criteria requiring regulation – abuse, toxicity, ubiquity and externalities (how does your consumption affect me?).
My pick is we’re going to start seeing more backlash against UPFs as more research showing how bad they are for us comes out.
More daily news:
Katrina Shanks has tricks to stop credit card debt from snowballing
Another review of the Credit Contracts and Consumer Finance Act (CCCFA) is to be carried out
Lawsuit against Asteron Life junked by the Court of Appeals
ASB's profit was $1.56 billion in the 12 months to the end of June
Longitudinal study finds overall improvement in financial literacy in young kiwis
The FDA has approved the first pill for treatment of postpartum depression
Suncorp New Zealand made an after-tax profit of $115m for the year to 30 June
Suncorp New Zealand made an after-tax profit of $115m for the year ended 30 June 2023. This was down 30% compared to the previous year.
Asteron Life performed well, making a profit of $50m, up $35m from the previous year. Asteron Life saw a 25% increase in new business and in-force premium growth of 6.7%.
Asteron Life’s Executive General Manager, Grant Willis, points to the support and engagement from independent financial advisers as one of the key factors in new business growth.
“We value our relationship with advisers and the partnership they have with us in supporting customers through every part of their life Insurance journey, from new business through to claims.
We were independently rated number 1 this year for adviser relationships and claims management, with our adviser net promotor score (NPS) rising from 44% to 66%. This has contributed to a new business market share increase from 10.5 % -11.3% (March figures).”
More daily news:
Katrina Shanks and Lyn McMorran claim finance sector fatigued in light of another CCCFA review
Our tour ended in Auckland's North Shore!
Our final week ended in Auckland North Shore and we had an absolute blast! A big thank you to everyone that attended, we'll be taking all your feedback back to Quotemonster HQ and using it to roll out even more monstrous upgrades.
Are you experiencing site issues following our monster upgrade this week?
Great news!
We have upgraded Quotemonster to add some exciting new features this week, however you may need to follow our handy hacks below to ensure you’re on the latest version:
Firstly, we recommend scrolling to the very bottom of Quotemonster to confirm you’re seeing: Quote Engine V.3.0 B1 | QPR V.15.4 | Web V.4.4.0.
A quick refresh to your browser might help – click the refresh button (usually a circular arrow to the left of your address bar) or press F5 on your keyboard.
If you’re using a bookmark, we recommend updating this – please open a new tab in your browser, type in www.quotemonster.co.nz, if you find the site is working normally, please save this as your new bookmark.
It might be time to clear your cache – click here for instructions on how to clear this in Google Chrome.
If you’re using Edge, Firefox or another search engine and experiencing issues, please try using Google Chrome. Google Chrome is the most compatible browser when using Quotemonster.
However, if you’re finding that none of our hacks are helping, you’re welcome to reach out to us on info@quotemonster.co.nz.
Legal and regulatory update for the life and health insurance sector
8 Aug 2023 - The Reserve Bank of New Zealand has published the results of its first life insurance industry stress test (LIIST). The 2022/23 LIIST demonstrates the largest insurers in the sector are well placed to withstand severe economic and insurance shocks, while continuing to pay out on policy claims. https://www.rbnz.govt.nz/hub/news/2023/08/first-rbnz-life-insurance-stress-test-shows-industry-well-placed-to-withstand-severe-shocks
8 Aug 2023 - ASIC outline their key enforcement priorities for 2023 which include greenwashing, targeting the poor design and distribution of financial products, pricing promises in insurance, protecting financially vulnerable consumers from predatory lending practices or high-cost credit, and directors’ duties and governance failures. https://asic.gov.au/about-asic/news-centre/speeches/maintaining-a-strong-focus-on-enforcing-the-law/
9 Aug 2023 - Paul Gregory's speech on 'Greenwashing - a view from the regulator' at the Responsible Investment Association Australasia (RIAA) Conference Aotearoa NZ 2023 is published https://www.fma.govt.nz/library/speeches-and-presentations/speech-by-paul-gregory-at-riaa-conference-2023/
9 Aug 2023 - NZ Police Financial Intelligence Unit released “The Suspicious Activity Report” for June 2023 https://www.police.govt.nz/sites/default/files/publications/fiu-monthly-report-june2023.pdf
10 Aug 2023 - The Reserve Bank of New Zealand – Te Pūtea Matua (RBNZ) has published the stress test scenario that our largest banks are using to test their ability to withstand severe, but plausible long-term climate-related challenges. https://www.rbnz.govt.nz/hub/news/2023/08/rbnz-releases-too-little-too-late-climate-resilience-stress-test-scenario
10 Aug 2023 - The Commerce Commission has outlined the key products and issues it proposes to explore in the market study into personal banking services, with the release of the Preliminary Issues paper. https://comcom.govt.nz/news-and-media/media-releases/2023/commerce-commission-outlines-proposed-focus-for-market-study-into-personal-banking
11 Aug 2023 - Findings from the latest Reserve Bank of New Zealand - Te Pūtea Matua Relationship Charter survey show significant improvements among insurer stakeholders in their ratings of the relationship with RBNZ. Key suggestions for what the Reserve Bank could do differently to improve the relationship included more proactive and personal contact from RBNZ, and flexibility on regulatory projects. 90% of bank participants gave an overall rating of ‘good’ or ‘very good’ for the relationship. Insurer participants’ ratings of the overall relationship with the Reserve Bank have increased significantly since last year (92% rating the relationship as ‘good’ or ‘very good’ in 2023 compared to 72% in 2022). https://www.rbnz.govt.nz/hub/news/2023/08/rbnzs-relationship-charter-shows-continued-growth-in-regulatory-relationships
Quotemonster in Nelson!
Aneel Ravji and Kelly Pulham had the pleasure of presenting in Nelson this week with a great crowd too!
We look forward to visiting again soon, and hopefully staying for a bit longer next time!
