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.
Southern Cross responds to accusations it dropped a $60k benefit without informing customers or advisers
Southern Cross has refuted a Good Returns article where advisers complained about not being informed about Southern Cross dropping a $60,000 a year benefit for non-surgical hospitalisations.
Southern Cross removed the non-surgical hospitalisation benefit as part of the Society’s benefit review in 2020, and Southern Cross’ head of customer strategy and experience, Nic Johnson has said that “Members were communicated with at the time of the benefit change.”
Johnson said that Southern Cross advisers were informed of the changes at the time via a virtual meeting, and that the company’s adviser gateway portal to manage their customers’ policies had information on the changes also.
Johnson said
“The original intention of the non-surgical hospitalisation benefit was as a 'catch-all' for eligible healthcare services that required in-hospital medical treatment. Based on a 2019 review of our claims data, which showed that the benefit was not widely utilised, it was assessed that this benefit was no longer fit-for-purpose.”
“The majority of medical (or hospitalisation) claims at the time were already covered under existing benefits, such as the surgical procedures, chemotherapy, radiotherapy and diagnostic tests/imaging benefits.”
We have commented on the change here.
Quality Product Research are in the process of conducting a review of the score for the feature, giving Southern Cross time to respond with more details of equivalent benefits being present in other parts of the medical insurance. We will raise the results of the review with our Southern Research Advisory Board next month – and update research subscribers immediately.
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Southern Cross funds the ‘Under One Umbrella’ report on mental health and addictions
nib publishes their top five medical claims for July
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
Legal and regulatory update for the life and health insurance sector
10 Jul 2023 - Minister of Finance, Hon Grant Robertson, June 2023 diary released with the following potential financial services sector related meeting noted:
• 8 June 2023 – Meeting with RBNZ Officials
• 12 June 2023 – Meetings with Treasury Officials
• 15 June 2023 – Meeting with Insurance Council of Australia, Insurance Industry representatives
• 15 June 2023 - Meeting with Swiss Re
• 19 June 2023 – Meetings with Treasury Officials
• 20 June 2023 - Meeting with ICNZ President Toni Ferrier, Insurance Councillor Tim Grafton
• 20 June 2023 – Meeting with Treasury Officials
• 26 June 2023 – Meetings with Treasury Officials
• 26 June 2023 - Meeting with Minister Edmonds, Bank CEs, ASB, ANZ, BNZ
https://www.beehive.govt.nz/sites/default/files/2023-07/Ministerial%20Diary%20June%202023.pdf
10 Jul 2023 - The FMA are considering using our exemption power to exempt certain CREs from the requirement to include a link to their climate statements in their annual report, with conditions, for a period of two years. Submissions close 7 August 2023. https://www.fma.govt.nz/business/focus-areas/consultation/climate-related-disclosures-timing-challenge/
10 Jul 2023 - The RBNZ is providing affected entities with an opportunity to review the amended banking prudential requirement (BPR) documents before finalising the framework for the proposed mutual capital instrument. Affected entities have until 31 July to provide any further feedback. https://www.rbnz.govt.nz/hub/news/2023/07/mutual-capital-instrument-rules-near-completion
AIA release sustainability report
AIA have released their 2022 Sustaining Healthier, Longer, Better Lives report. Some of the key highlights include:
Achieved Toitū carbonreduce certification (and being recertified in 2023)
Engaged New Zealanders over 8 million times with the AIA One Billion initiative, a global, multi-year programme that focuses on initiatives and events to improve kiwis physical and mental wellbeing
Paid 93% of claims received in 2022
Completed adviser wellbeing research
Introduced seven waste streams to AIA house, diverting approximately 10 tonnes from landfill
Employee engagement survey scored 4.3 out of 5
Announced an enhanced parental leave package
Published AIA’s gender pay gap (19.1%) in support of gender pay parity
Established an AIA NZ Board ESG Committee, chaired by an independent director
Established a dedicated workstream to prepare and assess climate risks and opportunities
More daily news:
Financial Advice NZ webinar 'Crafting impactful Statements of Advice' 19 July
Financial Advice NZ webinar 'Professional Ethics Workshop' 21 July and 15 September
mySolutions webinar 'Belong Group Business Session' with Tony Vidler 7 July 11:30am
Survey finds slight increase in business confidence
Australia Adopts New Life Insurance Code of Practice
RiskInfoNZ poll finds 66% of advisers agree they should meet their clients for an annual review
Jon Raby to leave role as Chief Financial Officer at ASB, Carl Ferguson to step into role
PWC release Family Business Survey 2023
PWC’s Family Business Survey of key decision-makers in 52 family businesses across NZ had some interesting insights on what these businesses’ priorities and plans for the future are.
• 69% expect to grow over the next two years
• 90% have some form of governance policy in place
• 52% feel they have strong digital capabilities
• Only 10% actively protect and consistently communicate about how they use private data
• 35% of business leaders said they will focus on improving their digital capability over the next two years
• 35% have an agreed and communicated environmental, social and governance (ESG) strategy
More daily news:
Naomi Ballantyne talks about how her exit strategy for Partners Life changed
Jon Davies says every insurance company needs to be looking at how they use technology and AI
ANZ and ASB are named as some of the top 20 employers in NZ
Study links ultra-processed foods and depression
Australian workplaces required to look after employees wellbeing
Nurses at Gisborne Hospital strike for health and safety reasons
Sir Ashley Bloomfield promotes Pause Breathe Smile programme
Sir Ashley Bloomfield has partnered with Southern Cross to promote the Pause Breathe Smile programme.
“I’m very excited about supporting Pause Breathe Smile as a way to help our children be more resilient, positive, and ready to face challenging situations in their own lives.”
Aimed at supporting mental health and wellbeing among children, Pause Breathe Smile is funded by Southern Cross and is available to all kura, primary and intermediate schools in New Zealand. Over 114,000 children across more than 400 schools had completed the programme since Southern Cross partnered with the Pause Breathe Smile Charitable Trust in 2020.
Survey results show the efficacy and importance of the programme. Chris White, CEO of Southern Cross Healthcare, said
“More than 1,000 responses from educators trained in Pause Breathe Smile showed that positive behaviour in the classroom increased by 12.4 per cent and negative behaviour in the classroom reduced by 10.1 per cent. We were also excited to see that 12 months on from introducing PBS, general student wellbeing was up 16.6 per cent and that the number of students flourishing increased by 8.1 per cent.”
More daily news:
Chubb Life raised its underlying rates on a wide range of products, extends two months free campaign
Chubb are holding the inaugural Chubb Connect event on Friday 23 June
Katrina Shanks writes of how businesses are underwhelmed by the Budget
AIA put 15 staff through HIKITIA MAI, their new Women in Leadership programme
mySolutions is holding a cyber security webinar 9 June
ASB wins 2023 INFINZ Corporate ESG Award
ANZ are holding a Māori in Business webinar 15 June
The average age of people of people enrolling for financial services certificate is 36
Law firm cautions the FMA has increased use of its Section 25 information gathering powers
Two new mental health facilities open at the Christchurch Hillmorton Hospital campus
Regular exercise may reduce a woman's chances of developing Parkinson's by as much as 25%
Options for a business that finds itself behind in business loan repayments
Times are tough. Credit reporting agency Centrix is already seeing numbers of consumer accounts in arrears climbing and companies defaulting on their loans increasing. Economists are predicting the Reserve Bank of New Zealand (RBNZ) will need to raise the Official Cash Rate (OCR) higher than the forecasted peak of 5.5%. A RBNZ survey of 1,000 New Zealand householders has found they expect inflation to be higher in a year than it is now. The unemployment rate is at a near-record low of 3.4%, making finding staff difficult. It’s not surprising that some businesses are struggling.
Katrina Shanks writes of options businesses can look at if they find themselves in financial difficulties.
• Talk to a risk manager at the bank about your options as soon as possible. They may include interest-only payments or reduced payments over a longer period. You’ll need a business plan to show how you plan to trade yourself out of the difficulty.
• Lower inventory levels so less money is tied up in goods.
• Increase margins – you’ll need to trade off the risk of losing customers who may shop elsewhere if prices increase.
• Reduce credit for slow paying customers
• Deal with fewer suppliers and negotiate better terms with those you keep.
• Request longer credit terms with your suppliers.
• Move to cheaper premises.
• Talk to a mentor to help with your stress.
• Seek professional help as to next steps if you can’t trade out of your financial position.
More daily news:
Russell Hutchinson identifies areas in the proposed Insurance Contracts bill that may cause problems
Katrina Shanks writes about how small business owners are faring compared to other countries
AIA has appointed Calvin Romeo to the role of head of ASB Partnership
Westpac's interest income was $2.85b, ANZ’s was $4.67b, in the six months to the end of March
Financial Advice NZ webinar 'Navigating retirement villages: What advisers need to know' 14 June
Financial Advice NZ are holding Professional Ethics workshops on 21 July and 15 September
Official Cash Rate now 5.5%
The Reserve Bank of New Zealand’s (RBNZ) Monetary Policy Committee has voted to raise the Official Cash Rate (OCR) from 5.25% to 5.5%.
The RBNZ has indicated that the OCR will need to stay at a restrictive level “for the foreseeable future” to get inflation back down to the RBNZ’s 1% - 3% annual target range.
The RBNZ has acknowledged that demand in the economy is slowing, with businesses reporting less demand for their goods and services, and homeowners feeling less wealthy due to falling house prices. However, low unemployment, the uncertain impact of high immigration on overall spending, rapid recovery in overseas visitor numbers and the repair and rebuild of parts of the North Island due to recent severe weather events all support economic growth.
The RBNZ is still forecasting 5.5% as the peak for the OCR, with cuts anticipated from the third quarter of 2024.
More daily news:
Katrina Shanks explains what regulatory returns are for and the FMA's expectations
ASB Business Sustainability Loans aimed at supporting positive social and environmental change
Massey University launch Complaint Response and Management course
AIA NZ Legal team named NZ In-House Team of the Year at the 2023 Australasian Law Awards
Minister of Health announces 8% pay boosts for GP & community nurses
Government launches new mental health tool for small business owner-operators
Proportion of households behind on their mortgage repayments in March up 26% on last year