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.
Highlights from nib’s 2023 Community Report
nib has released their 2023 Community Report, highlighting community initiatives across New Zealand and Australia delivered by nib, the nib foundation and employee volunteering and fundraising. The nib foundation is nib’s charitable organisation that focuses on helping people and communities live healthier lives. Some of the highlights include:
As part of the nib foundation’s Prevention Partnerships program, that aims to tackle risky behaviour, nib launched the Clearhead Finding Purpose tool in NZ.
Nib donated $20,000 to KiwiHarvest to distribute food relief to those affected by the Auckland floods and Cyclone Gabrielle. KiwiHarvest donated 57,000 portions of fresh produce.
Members, employees and the public voted for which local charity partner should receive a share of $30,000 as part of celebrating nib NZ’s 10th birthday – Ronald McDonald House received $15,000, KiwiHarvest received $10,000 and Clearhead received $5,000.
More than 8,500 members used Clearhead’s Finding Purpose tool.
Glen Eden Intermediate won a $10,000 cheque from the nib Little Legends $10k relay for their junior rugby team.
nib were the naming rights sponsor for nib IronMāori TOA, 17-hour event that includes a 3.8km ocean swim, 180km cycle and 42.2 km run.
nib were the naming rights sponsor of the nib Blues wāhine team and they donated $11,500 worth of specialist recovery equipment to the team.
Shannon Leota and Katelyn Vaha’akolo were each the recipients of a $5,000 nib Blues Health & Wellbeing Scholarship.
nib partnered with Save the Children, to help families in Ukraine gain access to essentials, such as, food, clean water and basic hygiene supplies; as well as cash grants, emergency services and mental health support.
Removed weeds and rescued trees with Conservation Volunteers New Zealand at Papakura stream and Sanders Reserve.
Nib staff collected and delivered Christmas presents to those in need with The Blues and the Salvation Army.
Packaged around 3,500kgs of food to deliver to local community kitchens and people in need across Auckland.
Overall across NZ and Australia, nib group delivered $6.6 million in community funding and over 1,500 volunteer hours.
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FSC Trans Tasman Strategic Leaders Summit 5 - 7 March, Auckland
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Melanie Gorham believes level-5 has shrunk the NZ insurance broking talent pool
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Kiwibank is rolling out a financial wellbeing programme for its staff
Legal and regulatory update for the life and health insurance sector
30 Aug 2023 - Chapter Zero says New Zealand needs to have credible net zero sector transition pathways https://www.chapterzero.nz/news/a-clear-path-to-decarbonisation-investment/
31 Aug 2023 - First reading of the Employment Relations (Protection for Kiwisaver Members) Amendment Bill completed in parliament, referred to the Finance and Expenditure Select Committee, with report back by 29 Feb 2024 https://bills.parliament.nz/v/6/bc7acd0f-efd4-4d6b-c045-08db67c4d76d?Tab=history
31 Aug 2023 - The Digital Services Tax Bill was introduced to parliament. This bill would allow the Government to implement a digital services tax https://bills.parliament.nz/v/6/7e81f14d-0dbd-42b7-2088-08dba9b9dfac?Tab=history
Premium increases at AIA
AIA is increasing premiums on its income protection (IP), waiver of premium and closed trauma products. AIA have said the increases are based on a gradual increase in IP claims and a higher level of claims on closed AIA trauma products compared with their wider trauma portfolio.
The table below shows the pricing increases, with closed AIA trauma products set to have staggered price increases at a rate of 5.2% a year over the next three years.
More daily news:
Tony Vidler recommends advisers keep client consultations simple
The IMF says the NZ Government needs to trim spending or risk prolonging high inflation
Banking ombudsman recommends changes to loan application processes
MyLifeMatters campaign calls for new medicines and more Pharmac investment
Legal and regulatory update for the life and health insurance sector
28 Aug 2023 - The Reserve Bank has introduced a new data series called New Residential Mortgage Lending by Purpose https://www.interest.co.nz/personal-finance/123983/number-people-choosing-top-their-home-mortgage-running-fewer-half-number
28 Aug 2023 - ASIC’s latest Corporate Plan reveals ASIC will take further enforcement action to protect Australian consumers and small businesses in an environment where scams, digitally-enabled misconduct and predatory lending practices are increasingly prevalent https://asic.gov.au/about-asic/news-centre/find-a-media-release/2023-releases/23-230mr-asic-focuses-on-protecting-vulnerable-consumers-and-small-businesses-in-23-24/
29 Aug 2023 - APRA has unveiled its 2023-24 Corporate Plan, which outlines an evolution in APRA’s priorities for the coming four years in response to new and developing risks impacting the global financial system https://www.apra.gov.au/news-and-publications/apra-responds-to-emerging-risks-2023-24-corporate-plan
Fidelity Life has announced the finalists for its 2023 advisor awards
Fidelity Life has announced the nominees shortlisted for its 2023 advisor awards. The awards recognise advisers who have consistently delivered good outcomes for customers and upheld high standards within the industry.
The award categories and finalists are:
Breakthrough adviser of the Year:
Kimberley Stevenson, With You Financial Services Ltd – Christchurch
Kylie Connor, Mainland – Timaru
Sascha Nettmann, Buffer Insurance – Auckland
Shakeel Lal, Halo Advisers Ltd – Auckland
Steve Munro, Risk Direct – Auckland
Cary Veenhof Award:
Amanda Haskin, Haskin Insurance Solutions – Christchurch
Anthony Gobbie, Insurance Design – Auckland
Brett Stonham, Stonham and Co – Auckland
Tim Lethlean, Delray Group – Christchurch
Team of the Year:
Adelphi Insurance brokers, Chris Boon – Christchurch
Financial Independence, Matt Beattie – Tauranga
Insure Ltd, Dave Jochem – Christchurch
Total Life, Craig Kura – Invercargill
There are an additional two categories which will be presented at the Fidelity Life’s Engage conferences – the Lifetime Award and the Gordon Watson Trophy.
Engage 2023, will be hosted in Christchurch on 12-13 September, followed by Auckland on 20-21 September.
More daily news:
Dan Mead has joined MAS as an Investment Manager
FMA reappoints Prasanna Gai to the board
Philip Macalister believes NZ will be exposed if COFI is repealed
Rob Hennin believes nib's financial results are the result of a strategy that works
mySolutions webinar 'Sharing insights on my business' 9am 6 September
Political parties announce policies requiring financial literacy to be taught in schools
Labour has announced a financial skills in schools policy that would require financial literacy to be taught at all levels in all schools by 2025, if Labour are re-elected.
Labour leader and Prime Minister Chris Hipkins said
“We know that our young people, to set them up for success, we need to make sure they understand the basics of budgeting, they need to understand basic financial concepts, they need to understand how to be good with money, they need to understand things like interest rates, KiwiSaver, insurance, debt, borrowing."
"We want to make sure they’re learning those core skills while they are at school, because we know that that's going to set them up well for a prosperous life beyond school.”
National Party deputy Leader Nicola Willis has said that, if elected, a National-led government would also make financial literacy compulsory in schools.
With both major parties backing the proposal, it is likely to become Government policy, regardless of the results of the election.
We share a view that poor financial literacy is a problem – as many acknowledge. Yet it is not clear to us how successful schools can be in addressing the issue. One is that skills taught in school tend not to be retained unless they are something that children have a particular interest in. Understanding prices, money, borrowing and saving, are likely to be useful at an earlier stage, for example, than insurance and home loans. As with all curriculum changes, making it relevant and balancing it against other educational needs is something that requires careful consideration.
FSC Gala Dinner
Congratulations to all the FSC award winners, including our very own Advisory Board member, Steve Burgess.
The Quotemonster team had a well deserved night out at the FSC Gala awards after a long four weeks of organising, travelling and presenting to over 600 advisers for our annual roadshow.
Legal and regulatory update for the life and health insurance sector
18 Aug 2023 - The Australian Securities and Investments Commission (ASIC) today confirms several executive changes within its senior leadership team. https://asic.gov.au/about-asic/news-centre/news-items/asic-announces-executive-appointments/
23 Aug 2023 - The Reserve Bank of New Zealand has published a Bulletin article highlighting high level results from a survey of prudentially regulated entities on climate change. Almost all entities’ governance bodies are discussing climate-related risks on a regular or ad hoc basis (28 out of 29). Concerns about climate-related risks are influencing day-to-day business decisions more than they were in 2019. However, only 3 out of 29 entities stated they have ‘fully embedded’ different aspects of climate-related risk management in the manner they already do for other business risks. https://www.rbnz.govt.nz/hub/news/2023/08/rbnz-releases-results-of-industry-climate-survey
23 Aug 2023 - APRA releases quarterly private health insurance statistics for June 2023 https://www.apra.gov.au/news-and-publications/apra-releases-quarterly-private-health-insurance-statistics-for-june-2023
23 Aug 2023 - The FSC have published 'KiwiSaver serious illness and life-shortening congenital conditions processing guidelines' https://blog.fsc.org.nz/guidelines-kiwisaver-serious-illness
24 Aug 2023 - The Reserve Bank of New Zealand has published new statistics from the monthly Loan-to-Valuation New Commitments Survey. The Loan-to-Valuation New Commitments Survey collects data from registered banks on new mortgage lending commitments during the month. On 31 August, RBNZ will also publish new statistics from the Bank Balance Sheet Survey (BBS), making more data available to all users on their website. The Bank Balance Sheet Survey collects data from registered banks on non-performing loans (impaired or more than 90 days past due) and provisions (for potential bad debts) across the banking system. https://www.rbnz.govt.nz/statistics/series/lending-and-monetary/new-residential-mortgage-lending-by-loan-to-valuation-ratio
24 Aug 2023 - The Reserve Bank of New Zealand has completed a review of its Connected Exposures policy; the finalised policy has now been published and is expected to come into effect on 1 October 2023. https://www.rbnz.govt.nz/hub/news/2023/08/connected-exposures-policy-finalised
24 Aug 2023 - The Australian Prudential Regulation Authority (APRA) has advised it will suspend the release of the September 2023 editions of the quarterly insurance statistical publications ordinarily released in late November 2023. https://www.apra.gov.au/news-and-publications/apra-suspends-publication-of-next-quarterly-insurance-statistics
24 Aug 2023 - Today, the privacy protection authorities of New Zealand, Canada, Australia, the United Kingdom, Hong Kong, Switzerland, Norway, Columbia, Morocco, Argentina, Mexico and Jersey are issuing statements on data scraping, and how the public can protect their privacy. https://privacy.org.nz/publications/statements-media-releases/new-zealand-part-of-global-effort-on-data-scraping/
25 Aug 2023 - ASIC has welcomed three new Commissioners to ASIC - Ms Katherine O’Rourke, Mr Alan Kirkland and Ms Simone Constant https://asic.gov.au/about-asic/news-centre/find-a-media-release/2023-releases/23-229mr-asic-welcomes-appointment-of-three-commissioners/
25 Aug 2023 - Chapter Zero has published an article on 'Data-driven decisions: Governance outtakes' https://www.chapterzero.nz/news/data-driven-decisions-governance-outtakes/
Southern Cross release their Workplace Wellness Report 2023
Southern Cross have released their Workplace Wellness Report 2023, an in-depth analysis of health and wellbeing in the workplace. Southern Cross surveyed 137 enterprises across New Zealand, representing 135,742 employees, or 6.5% of all NZ employees.
Some of the key findings include
• The average rate of absence per employee was 5.5 days, the highest ever. It was also the first full calendar year since the increased sick leave entitlement of 10 days per annum was in force and there was a mandatory stand-down of seven days for people who contracted Covid-19 that was in place during the time of the survey. From 2012 – 2020 the average ranged from 4.2 to 4.7 days per year.
• The cost to an employer for a typical employee’s absence is now $1,235 annually. Over the entire economy, the cost of absence reached approximately $2.86 billion, due to both increased absence rates and rising labour costs. This is a significant increase from the $1.85 billion cost for the total economy in 2020.
• 49.7% of organisations have observed an increase in stress in 2022. Workload is the main cause of work-related stress/anxiety and long hours as the second main cause of stress. Given the tight labour market conditions, it’s unsurprising that job uncertainty/redundancies dropped down the rankings significantly this year. Financial concerns are now the number one non-work-related stressor.
• 22% of organisations have reported instances of ‘quiet quitting’, where employees signal their intention to work within defined work hours only.
• The impact of staff wellness on productivity has grown to a mean of 4.33 out of 5, up from 3.91 in 2020.
• The main practices businesses are using to identify mental wellbeing/stress are staff surveys and training for managers.
• The top six benefits provided to improve employee well being were: an Employee Assistance Programme (EAP); vaccinations; flexible hours/working at home; education/training; wellbeing programmes; and parental leave.
• Almost 40% of organisations provided some form of subsidised health insurance for at least some employees. For employers who do not provide health insurance for employees, cost is a major barrier, with 53.4% of organisations saying a decrease in the cost of health insurance would prompt them to consider providing health insurance as a benefit. 31.9% would consider providing health insurance if they had evidence that it assists in retaining staff due to its perceived value. 14.7% would consider providing health insurance if they were approached by a health insurer to discuss the fundamentals of insurance, policies, benefits and wellness programmes.
• More than half of organisations allow more people to work from home since 2021, with one to two days per week as the most common working from home option.
• All organisations who had made changes around allowing staff to work from home or remotely saw it as a positive move, with employees happier to have more flexibility. On the flip side, almost all large organisations and about half of smaller organisations reported some employees felling isolated, some issues around collaboration.
More daily news:
Katrina Shanks writes about how the cost of living crisis is affecting middle income earners
Andrew Bayly says CoFi needs to go
Chubb Life are holding a marketing masterclass on 30 August
mySolutions webinar 'Lend and Protect' 9am 30 August
The Government’s mental health and addiction programme has hit one million support sessions
Research finds 55% of kiwis are struggling with their financial situation