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.
FSC release annual report, welcome new board members
The Financial Services Council (FSC) has released its 2023 Annual Report. The FSC has seen an uptick in membership growth in 2023, with 117 organisations that are members as of October 2023, up from 106 in 2022.
The Financial Services Council (FSC) has released its 2023 Annual Report. The FSC has seen an uptick in membership growth in 2023, with 117 organisations that are members as of October 2023, up from 106 in 2022. Members span the gamut from insurers, fund managers, KiwiSaver and workplaces savings schemes, professional service providers and technology providers to the financial services sector. The FSC reported an after-tax surplus of $164,707, down from $354,509 in 2022.
Some of the FSC’s key highlights from the year include:
· Launched the FSC’s policy platform – the Blueprint for Growth
· 653 delegates attended the FSC Conference
· Delivered Future Ready Advice Summits in Auckland, Wellington and Christchurch
· Launched three research papers
· Held 13 online events
· Made 17 policy consultations submissions
· Held 15 Committees and 17 working and focus groups with over 550 attendees from members and special guests
· More than 100 meetings with Government, Regulators and Inland Revenue
The FSC has announced three new Board members, Anna Scott (CEO of Smartshares), Ana-Marie Lockyer (CEO and Board Director of Pie Funds) and Campbell Mitchell (CEO of Fidelity Life). Current Board Chair Rob Flannagan’s term comes to an end in December.
More daily news:
Fidelity Life publishes turnaround times for new business, underwriting and call centre interactions
AIA achieves advanced GenderTick status
Combining Chubb campaigns could save customers up to 33% for their first year
MAS lower fees for the MAS KiwiSaver Scheme and MAS Retirement Savings Scheme
Philip Macalister speculates on Financial Advice NZ's future
The Finance Brokers Association of Australia (FBAA) is planning to set up shop in New Zealand.
Legal and regulatory update for the life and health insurance sector
2 Nov 2023 - Assistant Treasurer Stephen Jones outlined a new scam website takedown capability implemented by ASIC. Since July 2023, ASIC has disrupted scam activity by initiating takedowns of more than 2,500 investment scam and phishing websites. https://asic.gov.au/about-asic/news-centre/find-a-media-release/2023-releases/23-290mr-asic-s-new-website-takedown-capability-knocks-out-over-2-500-investment-scam-and-phishing-websites/
3 Nov 2023 - Adrian Orr delivered a keynote speech at the Chapter Zero Breakfast in Auckland, titled 'No longer tomorrow’s problem: How the Reserve Bank is working with its stakeholders to respond to Climate Change' https://www.rbnz.govt.nz/news-and-events/events/2023/november/how-the-reserve-bank-is-working-with-its-stakeholders-to-respond-to-climate-change
6 Nov 2023 - The Commerce Commission has joined competition, consumer protection, and economic regulators from across the Pacific to share intelligence, investigative techniques, and best practice in a newly formed initiative - the Pacific Island Network of Competition Consumer and Economic Regulators or PINCCER. https://comcom.govt.nz/news-and-media/media-releases/2023/competition,-consumer-and-economic-regulatory-authorities-form-network-to-promote-well-functioning-markets-in-the-pacific
6 Nov 2023 - Privacy Commissioner's Annual Report for the year ending 30 June 2023 is published. https://privacy.org.nz/publications/corporate-reports/annual-report-of-the-privacy-commissioner-2023/
7 Nov 2023 - The Reserve Bank of New Zealand announces key decisions on review of policy for branches of overseas banks. Key decisions in the Branch Review include:
restricting all branches in New Zealand to engaging in wholesale business (that is with corporates, institutions and other wholesale investors), meaning they could not take retail deposits or offer products or services to retail customers;
limiting the maximum size of a branch to NZ$15 billion in total assets; and
continuing to allow the dual registration of branches, provided:
the relevant subsidiary and branch are sufficiently separate, and any identified risks are mitigated by specific conditions; and
dual-registered branches only conduct business with large wholesale customers.
https://www.rbnz.govt.nz/have-your-say/review-of-policy-for-branches-of-overseas-banks
New medical price comparison database
An update to the medical insurance price comparison database has been made. The new version of the database, for institutional subscribers is version 10_4
Changes in V104:
Updated AIA and Southern Cross rates effective 1st November
Fidelity Life release financial results
Fidelity Life has released its annual report and financial results for the year ended 30 June 2023.
Fidelity Life has released its annual report and financial results for the year ended 30 June 2023. Highlights include:
· Insurance premium revenue of $450.4 million, up 33% from FY22
· Total comprehensive income (net of tax) of $3.2 million, an improvement from their FY22 loss of $24 million
· Underlying profit, excluding the impact of government bond rate changes (net of tax), of $19 million
· Claims paid out in FY23 $209.7 million, up 27% from FY22
· 304,867 customers
· Market share of 15.7%
Fidelity Life resumed payment of dividends, with Fidelity Life’s shareholders receiving a full-year dividend of $8.013 per share. The dividend is unimputed as the Group continues to utilise brought forward tax losses.
Fidelity Life Chair Brian Blake says
“We expected the benefits of our Westpac Life acquisition to start materialising in FY23, and that’s proven to be the case. Our performance shows the business is in good shape and proving resilient against a weak economy and the high cost of living.
…In response to adviser feedback, we’re introducing a raft of new initiatives spanning the digital, product and service spaces to make it easier for advisers to do business with us, focus on growth, and together take our respective businesses to the next level.”
More daily news:
Deloitte Top 200 Business Awards finalists include staff from ANZ, ASB, The Co-operative Bank
ANZ Chief Marketing Officer Astrud Burgess named Effective Marketer of the Year at Effie Awards
Kiwibank received 6 awards, including the Grand Effie, at the 2023 Aotearoa Effie Awards
Ainsley McLaren talks about the investment needs and behaviours of women
CERT NZ create Own Your Online website, to raise understanding of cyber security issues
The unemployment rate rose to 3.9% from 3.6% in the September quarter
Fraud Awareness Week is taking place November 13-18
Cancer patient advocates say health system reforms are taking too long
Demystifying Advicemonster [online session]
Over 2,000 Statement Of Advice (SOA) reports have been generated on Quotemonster in the last six months and we invite you to see why!
We welcome you to join our upcoming online Advicemonster training session scheduled on Wednesday, 8 November 2023 10:00 am-11:00 am
In this session, we have an in-depth walk-through of our Statement of Advice service and how you can create a professional and comprehensive SOA. Be the first to learn about our recent enhancements and ongoing developments from our new AdviceTech Lead, Aneel Ravji. Our Needs analysis and SOA tools are exclusive to the Advicemonster subscription and due to the advanced nature of the product, training can take between 60-90 minutes. This session is great to attend for those considering upgrading their subscription, or if you have already upgraded but would like to learn how to get the most out of it.
If you would like to register, please send us an email on aneel.ravji@qpresearch.co.nz
We look forward to seeing you there!
Fidelity Life updates
Fidelity Life have been busy.
They have launched a live chat function for advisers to be able to interact with new business and underwriting teams.
Fidelity Life will launch product enhancements in November including
increasing maximum monthly benefit percentages from 110% to 115% of mortgage repayments;
new trigger to increase cover as a result of buying an investment property, holiday home, residential block of land, or co-signing a child’s mortgage;
new trigger for when financially supporting a child through first course of full-time tertiary education;
special events - removing the exclusion for customers with loading >100%
future events & insurability - removing the exclusion for customers with non-standard terms;
increasing the maximum monthly benefit for Key person new to business from $4,000 to $6,500 and for Key person for farmers from $5,000 to $9,000;
rolling out new repatriation benefit to all inforce and new on-sale life covers (except Survivor’s income cover), which reimburses up to the lesser of either 10% of the life cover sum insured or $20,000, helping to cover the cost of repatriating a body home;
changing our Trauma Stand-down start date to when the customer submits their completed application instead of when they finish underwriting.
In coming months Fidelity Life will publish turnaround times for new business and call centre interactions.
Fidelity Life are offering special relief to weather impacted customers in Queenstown, Gore and Southland who are facing financial hardship. They have offered a waiver of premiums for up to 3 months while keeping cover in place.
Fidelity Life will roll out annual product re-accreditation training models in November, mandatory for all advisers working with Fidelity Life customers
Fidelity Life have published a ‘Working together guide’
More daily news:
Russell Hutchinson talks about how advisers can help their clients in tough financial times
Jenny Ruth criticises Southern Cross for pulling out of planned interview
Mark Banicevich, Industry Engagement Manager at Partners Life, provides views on governance
Policyholders to vote on Accuro and Unimed merger at special meetings
Financial Advice NZ webinar 'How to best advise and manage forestry assets' 15 November
Cyber Smart Week runs from 30 October – 5 November
FinTechNZ Roundtable – Competition for Personal Banking Services on 27 November
Legal and regulatory update for the life and health insurance sector
30 Oct 2023 - The FMA publish key findings from the 2022 re-licensing of Supervisors https://www.fma.govt.nz/assets/Reports/Key-findings-from-2022-Supervisor-relicensing.pdf
31 Oct 2023 - The FMA is reminding licensed financial service providers about the importance of cyber-resilience as part of Cyber Smart Week 2023 https://financialmarketsauthority.cmail19.com/t/r-l-tixdult-btuitpxk-t/
31 Oct 2023 - The FMA released Climate-related Disclosures – Scenario analysis information sheet, detailing compliance expectations of the FMA for scenario analysis disclosures made under the climate-related disclosures (CRD) regime https://www.fma.govt.nz/library/guidance-library/scenario-analysis-information-sheet/
31 Oct 2023 - ASIC has released its second publication on information lodged under the reportable situations regime. Over 16,000 reports were made to ASIC by financial services and credit licensees under the regime between 1 July 2022 and 30 June 2023. The publication shows little improvement has been made in key areas of concern that ASIC highlighted in the first publication on insights from this regime last year. Among other things:
the proportion of the licensee population reporting remains very low, indicating that some licensees may not be complying with the regime
licensees are still taking too long to identify and investigate some breaches
a significant number of remediation activities are still taking too long to complete, and
there remain opportunities to improve identification and reporting root causes of breaches.
31 Oct 2023 - Financial Inclusion is one of CoFR’s five priority themes. COFR has pulled together recent publications in this area include the RBNZ’s Approach to Financial Inclusion and a joint message from the FMA and the Commerce Commission on supporting customers in financial difficulty. https://www.cofr.govt.nz/priority-themes/inclusion.html
1 Nov 2023 - The Reserve Bank of New Zealand release their November 2023 Financial Stability Report, which shows New Zealand's financial system remains strong and is well placed to handle the current adjustment to higher interest rates and more severe economic scenarios. https://www.rbnz.govt.nz/hub/news/2023/11/financial-system-still-adjusting-to-higher-interest-rates
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