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.
AI and its disruptive influence on the global economy
Capital Economics has an interesting discussion on how Artificial Intelligence (AI) will transform the global economy, fundamentally changing how companies and economies operate. They show how technology adaption lags have been decreasing worldwide, with countries becoming ever faster to implement a new technology after it is invented. They also theorise that faster adopters generally reap larger productivity gains.
They posit that one of the biggest productivity boosts from using AI will come via one-off efficiency savings – doing more with existing resources or doing the same with fewer resources. In some cases, AI will replace human activity where it’s more efficient; other times AI will enable people to become more productive in their existing jobs. In other situations AI will be able to aid innovation, sifting through information to identify relationships and patterns that people might overlook.
Capital Economics have developed an AI Economic Impact Index, which assesses which economies are best placed to benefit from AI over the next couple of decades. Unsurprisingly, they rate the United States as best placed, due to their existing technological leadership, the size of their economy, level of public and private R&D spend and high levels of education.
Capital Economics suggest industries with repetitive tasks suitable for automation will adopt AI quickly. They also suggest industries with large datasets may be able to quickly initiate AI adoption for laborious tasks. Industries involving a lot of manual labour which cannot be automated and industries at greatest risk from adopting AI will be slower to implement its use. They stress that eventually AI’s influence will spread to affect all sectors of the economy.
A close-to-home example of how AI can help improve productivity is how Quotemonster is helping advisers become more efficient with opt-in AI functionality. Advicemonster users can use the ‘upload insurance quote’ function to save a pdf version of your insurer quote into the portal and the AI will automatically input in your Quotemonster Client and Benefit Details, speeding up the process substantially.
If you’re interested in finding out more about AI in regards to the financial services sector, a recent Chatswood Consulting Limited Quarterly Life and Health Sector Report has more information, including a discussion on the current challenges and limitations. Reach out to Kelly Pulham on 021 311 660 or kelly.pulham@chatswood.co.nz to find out more.
More daily news:
FSC finds Health Insurance Sector issued $1.8 billion in claims in the 12 months to 1 July 2023
Nominations for the Financial Advice New Zealand Awards 2024 open
MinterEllisonRuddWatts discuss Australia’s proposed regulatory framework for digital asset platforms
Household living costs up 7.4% in the last year
Nurses warn dire staffing shortages in ED are putting workers and patients in danger
Survey finds small business owners are facing more wellbeing challenges than other NZer’s
A Xero survey has found that while kiwi small business owners are faring better than their overseas counterparts, they are facing more wellbeing challenges than other New Zealanders.
Of the seven countries surveyed, Kiwi small business owners ranked third in overall wellbeing rankings and first in overall life satisfaction. The survey found that NZ small business owners fared better than other countries when it came to financial distress, with just 14% experiencing financial distress most or all of the time and 28% never experiencing it.
There were age and gender-related differences in kiwis wellbeing as well as differences between sole traders and small business owners with employees. Under 30-year-old small business owners reported lower overall wellbeing than those over 50. Men were more likely to feel fulfilled by the work activities they engage in all or most of the time than women (63% vs 49%). Sole traders were found to have a lower life satisfaction level than small businesses employing staff.
The survey also found that running a small business is taking a toll on kiwis’ ability to take a break, with only 17% saying they can take a break when needed all of the time and 6% saying they are unable to take time off work regularly when needed. 35% of NZ small business owners found their personal lives disrupted by work more than half the time.
More daily news:
Nominations for the Financial Advice New Zealand Awards 2024 open
Chubb Life remove medical loading conditions on their 10% Lifetime Reward benefit
Chubb life have removed the medical loading conditions from their 10%…
Chubb Life have removed the medical loading conditions from their 10% Lifetime Reward benefit from 25 October 2023. This means all new Life, Life Income and Trauma insurance customers who, at the time of taking out an Assurance Extra or Assurance Extra Business policy have a healthy BMI measurement of between 18.5 and 24.99 and are non-smokers, qualify for the benefit. The 10% discount is guaranteed for the life of the customers policy and will be applied to the risk premium for the eligible covers. FAQ’s around the 10% Lifetime Reward benefit can be found here.
More daily news:
nib launches national adviser seminar series
Katrina Shanks named as new chief executive for ANZIIF
Katrina Shanks writes how people can apply the drawdown rules of thumb for retirement
Southern Cross Health Insurance announces panel of judges for Wayfarer awards
Southern Cross Healthcare recycles 10,000 disposal lens delivery systems
Financial Advice NZ webinar 'The business of merger and acquisition' 8 Nov
FSC announce group discounts for FSC24: Trans Tasman Strategic Leaders Summit
FSC's Workplace Savings End of Year Networking Function 7 November
FDRS Members' Forum and Annual General Meeting 31 Oct
Westpac suggests allowing mutual recognition of AML/CFT due diligence across banks
Research Discussion: medical insurance non-surgical claims
Quality Product Research (QPR) welcomes you to join Russell Hutchinson, Director of Quality Product Research, Doreen Dutt, Research Manager, and special guest, Jon-Paul Hale, Life Insurance Adviser from Willowgrow Consulting, for an in-depth discussion on medical insurance non-surgical claims.
This meeting will be held over zoom on Tuesday, 7 November 2023 11:00 am to 12:00 pm and will include the following:
Background information and QPR’s re-rating process
An overview of the benefit change and recent updates, from Jon-Paul
Options to reflect the product changes in rating
Time allocated for attendees to ask questions and provide feedback, specifically we are interested in hearing examples of relevant claims
Our blogs on the topic are linked below and more articles from Jon-Paul can be found on Good Returns:
https://www.chatswood.co.nz/home/i3xolkjs923or7z6hbieu23p87tk4q
https://www.chatswood.co.nz/home/y2elvh3b8ltl7faxpqwglj8ghjiiq0
If you are interested in joining our research discussion, please send us an email on researcher@qpresearch.co.nz and we will reply with a calendar invite.
We look forward to seeing you there!
Legal and regulatory update for the life and health insurance sector
24 Oct 2023 - ASIC has signed the International Association of Insurance Supervisors (IAIS) Multilateral Memorandum of Understanding (MMoU), an international supervisor cooperation and information exchange agreement. The IAIS MMoU provides a global framework of compliance and confidentiality to allow for open cooperation and exchange between insurance supervisors. To become a signatory to the MMoU, applicants undergo a rigorous assessment of their professional secrecy regimes, conducted by an independent team of IAIS members. Through membership in the MMoU, supervisors can exchange relevant information and assist other signatories, thereby promoting the financial stability and sound supervision of cross-border insurance operations for the benefit and protection of consumers. https://asic.gov.au/about-asic/news-centre/news-items/asic-signs-mmou-with-the-international-association-of-insurance-supervisors/
24 Oct 2023 - This year’s Sir Bruce Slane Memorial Lecture on the topic of "Balancing privacy and other interests in the social media age" will be held on 6 December https://privacy.org.nz/news/forums-and-seminars/register/
25 Oct 2023 - The Australian Prudential Regulation Authority (APRA) has released its Operations of Private Health Insurers Annual Report for the financial year 2022-2023. The Operations of Private Health Insurers Annual Report shows expenses, revenues and operational information about private health insurers. https://www.apra.gov.au/news-and-publications/apra-releases-operations-of-private-health-insurers-annual-report-2
27 Oct 2023 - Financial Services Council released its KiwiSaver Industry Spotlight statistics for the Sep 2023 quarter. https://7422267.fs1.hubspotusercontent-na1.net/hubfs/7422267/FSC%20Corporate/Documents/Industry%20Statistics/SPOTLIGHT%20KiwiSaver%20SEP%202023.pdf
27 Oct 2023 - Chapter Zero publishes governance outtakes from their climate change and business conference https://www.chapterzero.nz/news/behavioural-change-for-climate-change/
What is a signature?
There has been some excellent material written about which insurance companies accept which types of digital signatures, and for which types of documents. But have you considered the simple emoji. Kirsten Patterson, CEO of the Institute of Directors mentioned in her recent news email that a case in Canada considered the use of the ‘thumbs up’ emoji to be acceptance of a contract:
From Patterson’s email:
Another question for you: When is an emoji a business risk? The answer is when you use a “thumbs up” to agree to a contract. That’s the lesson of Canadian dispute where an emoji was deemed as official as a signature.
I can’t say I have ever used emojis in a formal business context but it is interesting to see how courts are beginning to interpret this new – and usually innocuous – form of communication. Find out more in the article below.
Context does count, as you will read if you check out the details, at this link: https://thelawassociation.nz/canadian-judge-accepts-thumbs-up-emoji-as-binding-in-contract-dispute/ but nonetheless, you can see how formality in our contracting is valuable. One man’s thumbs up could mean ‘yeah, I hear you, I need to look at that contract’ while the receiver hears ‘I agree to the contract terms - go ahead’.
This is a reminder, especially for those of us who have built a larger business out of a smaller one, that governance processes are not a hindrance to day-to-day activity, they are there to keep stakeholders in the business safe and ensure clear communication and consistent expectations about what the business will and will not do.
Thanks to Wikimedia commons for the Thumbs up logo, under creative commons license
Quotemonster Online Training (with tips and tricks)
Over 2,500 Financial Advisers in New Zealand have crunched over 15 million quotes in the last 12 years using Quotemonster, and we invite you to see why!
We welcome you to join our upcoming introductory training session scheduled on Monday, 30 October 2023 1:00 pm-2:00 pm
In this session, hosted by Kelly, our National Partnerships Lead, we go over the basics of using Quotemonster and how to make the most of your Researchmonster subscription along with:
How to generate a premium comparison between insurers
How to set up your Product and Provider Settings screen
How to directly compare two insurers for replacement business (Head-to-Head)
How to download our detailed comparison and client-friendly benefit overview or heat map report
How to add banks and non-adviser companies to your Research comparison
How to find legacy policy documents
If you would like to register for this session please send us an email on info@quotemonster.co.nz
We look forward to seeing you there!
nib release their 2023 State of the Nation Parenting Survey
nib have released their 2023 State of the Nation Parenting Survey, which has found parental concern for children’s mental health has skyrocketed and shows just how severely the current cost of living crisis is affecting families. The survey canvassed the views of 1,206 parents, step-parents and guardians across NZ in June 2023.
Some of the key findings include:
46% of all parents say their biggest worry for their children is the future state of their mental health (up from 40% in 2022).
57% say they are worried about their children’s current mental health.
49% of parents say they are concerned about their child’s physical health (which increases to 59% of Māori parents).
Parents reported the top three physical health concerns impacting their children as sleeping problems (34%), behavioural issues like tantrums, problematic eating and bullying (28%) and diet and exercise (25%).
46% of parents have health insurance (up from 44% in 2022), with 64% having made a claim. Key reasons for taking up private health insurance were peace of mind (52%), quicker access to health services (48%) and confidence they can access health services (48%).
31% of parents are unable to access the support they need to address their child's health concerns.
The survey found that almost all kiwi parents were facing financial stress (93% of households).
49% of parents said financial uncertainty is the main source of household stress (up from 41% in 2022 and 35% in 2021).
66% of parents’ top concern for their kids’ future is cost of living.
19% of parents have gone without essentials such as petrol, heating or skipping meals over the last year.
Food choices are being impacted by increasing financial pressures, with 52% of parents saying they are eating less or differently; 23% keeping grocery spend the same but eating less; 51% eating less fresh vegetables; and 40% eating more processed foods.
Parents have said that increasing costs are negatively affecting their relationships and social lives with 31% reporting a negative impact on their relationship with their partner, 42% having their social lives and connection to friends negatively affected and 25% experiencing a negative impact on the amount of time spent with their children.
14% of families are choosing to delay having more children.
13% of families’ main caregiver is needing to return to work.
Nathan Wallis, nib’s resident parenting expert and neuroscience educator has some tips for families doing it tough right now.
“Parents are under increasing financial pressure and many feel like they don’t have the time, energy or resources to care for their kids and look after themselves but it’s really important that parents find ways to look after their own wellbeing”.
“It’s really important that parents look after their own mental and physical health so that they can show up for their kids. Proactively looking after your own health and wellbeing also has the added benefit of role modelling good behaviours to your kids. When parents role model healthy eating habits and exercise their kids tend to follow”.
“It might be as simple as coming together for a family meal or taking the kids for a walk or kick a ball around at the park. These healthy habits are great ways to bond with your kids and set them up for success”.
More daily news:
Southern Cross Health Insurance launch Wayfinder Awards
Southern Cross Health Society is recruiting for a Communications Executive
Fidelity Life has two finalists in the NZ Women in Security Awards
AIA, ANZ, BNZ, Westpac have finalists at the NZ Law Awards
Financial Services Federation director wants to salvage something from CoFI preparations
Swiss Re write about redefining sustainability in life and health insurance
Daisy Ning, Head Life & Health Re APAC ex. China, writes about how sustainability can be applied more broadly in the insurance and reinsurance context. Swiss Re believe sustainability aligns with what they refer to as the ‘3A’s’ of life and health insurance:
accessibility (the ease of acquiring coverage), availability (whether suitable plans and products exist to cover the full range of L&H needs), and affordability (whether products and plans are priced fairly and within consumers’ means).
Ning advocates for formulating strategies that manage risk, improve adaptability and explore opportunities – regardless of market conditions; assessing trends and value delivered to clients and adjusting as necessary; and enhancing value delivered to clients by making insurance solutions more relevant.
The global protection gap in 2022 was sitting at US 406 billion in premium equivalent terms, up 1.5% since 2021. A recent Deloitte estimate has the Australian public at 60 – 80% underinsured. A Swiss Re estimate of NZ’s mortality protection gap was USD 435 billion (NZD 670 billion) or more than USD 540 000 for each household, as of 2020.
Ning suggests we need to leverage connectivity and digitalisation to make products more affordable; leverage big data and advanced analytics to uncover insights into market trends, customer behaviour and risk factors and create products that address emerging needs discovered through this process; look at digital health underwriting; and increase reach through building alliances with online platforms, aggregators, fintechs and other digital players.
More daily news:
Katrina Shanks works through pros and cons of Trusts
Industry leaders suggest how incoming government can support the industry
mySolutions launches New Adviser Academy
FintechNZ Annual Meeting 2023 3pm on 23 November
ANZ awarded New Zealand's top bank for small business by Canstar NZ
Link financial group awarded one of the Best Mortgage Companies to Work for in New Zealand
Legal and regulatory update for the life and health insurance sector
17 Oct 2023 - The Australian Prudential Regulation Authority (APRA) has released its Life Insurance Claims and Disputes Statistics publication, covering a rolling 12-month period from 1 July 2022 to 30 June 2023. https://www.apra.gov.au/news-and-publications/apra-and-asic-publish-latest-data-on-life-insurance-claims-and-disputes-7
18 Oct 2023 - The Australian Prudential Regulation Authority (APRA) has released its 2023 authorised deposit-taking institutions (ADIs) points of presence statistics.
The points of presence statistics are a detailed listing of the physical banking service channels provided to Australians, including branches, ATMs and EFTPOS facilities. https://www.apra.gov.au/news-and-publications/apra-releases-latest-points-of-presence-statistics-for-authorised-deposit
19 Oct 2023 - The Australian Prudential Regulation Authority (APRA) has released observations on credit risk provisioning practices for locally incorporated authorised deposit-taking institutions (ADIs). https://www.apra.gov.au/news-and-publications/apra-releases-observations-on-credit-risk%C2%A0provisioning-practices-for-locally
19 Oct 2023 - The FMA has reviewed an existing class exemption notice that allows product disclosure statements to be provided in full in both te reo Māori and English (dual language PDSs) and granted the extension to continue this relief. https://www.fma.govt.nz/business/focus-areas/consultation/dual-language-te-reo-maori-pds/
20 Oct 2023 - Peter Boshier, Chief Ombudsman, publishes his 2022/2023 Annual Report https://www.ombudsman.parliament.nz/news/trust-and-demand-ombudsmans-services-higher-ever