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.
Lifetime group acquires an advisory firm specialising in employee benefits
The Lifetime Group, a Christchurch-based, full-service financial advisory firm, has bought Protection Solutions, which specialises in employee benefits schemes.
The undisclosed transaction price includes cash and shares, with Grant Uridge and Thurl Gibbs of Protection Solutions both taking a 4.5% stake in Lifetime.
The merger expands Lifetime’s capabilities in personal and business insurance advice, with Protection Solutions currently having 13 group schemes on its books.
More daily news:
The Adviser Platform (TAP) is offering a 50% discount for six months
AM Best will be holding its Insurance Market Briefing – Auckland on November 16
ASB receive the 2023 Make it Easy Award for their Easy English guides
FSC request members participate in their member satisfaction survey
ANZ named Canstar's 2023 Bank of the Year in the Agribusiness category
Covid-19 cases spike across the country, possible we are at the start of a new wave
Legal and regulatory update for the life and health insurance sector
13 Nov 2023 - The FMA reminds New Zealanders to remain vigilant to investment scams as part of Fraud Awareness Week 2023 https://www.fma.govt.nz/news/all-releases/media-releases/fma-encourages-new-zealanders-to-be-aware-of-investment-scams/
13 Nov 2023 - ASIC calls on organisations to prioritise their cyber security after its report into the cyber capability of corporate Australia identified significant gaps https://asic.gov.au/about-asic/news-centre/find-a-media-release/2023-releases/23-300mr-asic-calls-for-greater-organisational-vigilance-to-combat-cyber-threats/
14 Nov 2023 - Research released by ASIC’s Moneysmart program shows for 68% of Gen Zs, finances are a major cause of concern, more than any other age group (57% of non-Gen Zs). https://asic.gov.au/about-asic/news-centre/find-a-media-release/2023-releases/23-302mr-gen-z-more-concerned-about-finances-than-any-generation-in-australia/
14 Nov 2023 - The Reserve Bank of New Zealand publishes Karen Silk's speech on building a balance sheet to support financial stability https://www.rbnz.govt.nz/-/media/project/sites/rbnz/files/events/2023/11/building-a-balance-sheet-to-support-financial-stability.pdf
15 Nov 2023 - The FMA has opened consultation on its approach to outcomes focused regulation, including the fair outcomes for consumers and markets it wants to see financial service providers focus on. Consultation closes 1 March 2024. https://www.fma.govt.nz/news/all-releases/media-releases/fma-opens-consultation-on-fair-outcomes-for-consumers-and-markets/
How many adviser associations does NZ need?
Following The Finance Brokers Association of Australia’s (FBAA) news that they plan to open a local branch in New Zealand in February, Katrina Shanks has questioned whether there is room for another adviser association.
Peter White, FBAA’s chief executive has said the as yet unnamed association will offer mortgage advisers a “stronger voice and representation in front of regulators and politicians” as well as giving “greater awareness and understanding to borrowers as to why they should be using a mortgage adviser to get their home loan rather than just going direct to the banks”. White also promises to deliver more professional development events relevant to the sector.
While Financial Advice NZ won’t release the number of members who are mortgage advisers, she says they are already specifically catered to with services including a ‘Seeking Adviser’ campaign on the website, an online learning management system, a range of mortgage tools and training on areas such as regulation and legislation.
More daily news:
MAS becomes a Toitū net carbonzero certified organisation
BNZ report statutory net profit of $1.509 billion, up 6.7% on the previous year
Almost two hundred million dollars was lost by kiwis to scams in the last year
Quality Product Research: Our Research Principles
We aim to provide our subscribers with research that is clear, value-based, and easy to use.
Clear – because we want you and your clients to be confident that differences in ratings reflect significant differences in policies.
Value-based – because ratings should reflect the real differences in value. This means the structure should be weighted to reflect the events that happen more often, plus the claims that are more often paid, and the amounts paid.
Easy to use - because a rating system that is as complicated as the original policies is too complicated to help you and your clients. That means some form of simplification and selectivity in rating measures is always needed.
Of course, our Research is based on our opinion, but as far as possible we try to make that based on facts informed by expertise and experience from a range of expert sources. Accepting, however, that it is not an exact science.
Here we share our research principles:
• Research coverage of more than 95%+ of on sale products.
• Enhancements or policy wording updates are live on Quotemonster within three months of receiving relevant policy documents.
• We provide research comparisons – so a unique product may not receive a rating until there is a peer group against which it can be reasonably compared, typically we rate comparable products that are offered by at least three providers.
• We rate policy documents, not general statements, brochures, or advertising material.
• Our ratings are informed by legal opinion, for example:
If coverage is for death, that includes death anywhere in the world unless specifically excluded.
Where two sections of the policy document conflict, we rate the worst of the two.
“For example...” is not a policy commitment that can be rated.
• We research using our four-factor methodology – click here for more information on this.
• We follow a rating process:
Sub item weightings are value based, descriptive and clear.
Benefits are weighted according to how beneficial they are to the client.
Sub items focus on the differences between wordings (exceptions: in exclusions, we aim to describe every applicable exclusion).
We reserve the right to exclude a feature or benefit in the interest of clarity where such a feature does not have significantly evident value.
• We seek external advice and consult regularly with industry experts such as Insurers, Reinsurers, Regulators, Actuaries, Health Professionals, Advisers, for:
Value
Meaning of specific terms
Treatment at claim time
Likelihood of occurrence
We are cautious to assess a list of requirements to determine if all or some apply, if in doubt we assume all will apply.
• Discretionary benefits (e.g., Grief & Funeral Support, Child Funeral) are given a low weighting.
We hope this provides some insight into our research and if there is a specific topic you would like us to share on, please send us an email on info@quotemonster.co.nz.
Legal and regulatory update for the life and health insurance sector
8 Nov 2023 - APRA releases minor amendments to Prudential Standard LPS 310 Audit and Related Matters (LPS 310) for life insurers https://www.apra.gov.au/news-and-publications/apra-releases-minor-amendments-to-standard-on-audit-and-related-matters-for
9 Nov 2023 - Minister of Finance, Hon Grant Robertson, October 2023 diary released with no potential financial services sector related meetings noted https://www.beehive.govt.nz/sites/default/files/2023-11/Ministerial%20Diary%20October%202023.pdf
9 Nov 2023 - Kirsten Patterson writes about bringing climate change to the fore in governance https://www.chapterzero.nz/news/sustainable-business-and-finance-climate-governance-hots-up/
Next week is Fraud Awareness Week and the SFO is running a webinar series
The Serious Fraud Office (SFO) is running a series of webinars for Fraud Awareness Week, which runs from 12 – 18 November 2023.
We have written about how scams are on the rise in NZ and how the NZ banking sector has announced new measures in the fight against fraud. Now a recent Grant Thornton New Zealand survey has found only 41% of business owners, leaders and decision makers undertake specific planning for fraud risk, so there’s no better time than now to increase your knowledge in this area. The Serious Fraud Office (SFO) is running a series of webinars for Fraud Awareness Week, which runs from 12 – 18 November 2023.
Monday 13 November 12.00-1.00pm
Cyber-enabled fraud - this session will explore what cyber-enabled fraud is and some of the ways you can lock your digital door to fraud.
Wednesday 15 November 12.00-1.00pm
Fraud and Artificial Intelligence - hear from two AI specialists about how fraudsters can use AI to commit their crime as well as how AI can be used to help prevent and detect fraud.
Friday 17 November 12.00-1.00pm
True Crime: SFO case study - hear from two of the SFO team about cases they have worked on and how the lessons they learned can help prevent similar financial crimes occurring again.
To register to attend the webinars, contact the SFO at counterfraud@sfo.govt.nz.
More daily news:
Katrina Shanks writes about how to work out the best investment approach
FBAA say lifting the number of mortgages written by independent advisers is top priority
TSB appoints Kerry Boielle as new CEO
Westpac chief executive Catherine McGrath says principles-based legislation is a good thing
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