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.
Changing business demographics opens up opportunities for advisers
Stats NZ’s latest business demography statistics (as at February 2023) paints a promising picture of New Zealand’s economic landscape. With more new businesses and a rise in employment, opportunities abound for insurance advisers specialising in Business Risk Protection products.
Stats NZ’s latest business demography statistics (as at February 2023) paints a promising picture of New Zealand’s economic landscape. With more new businesses and a rise in employment, opportunities abound for insurance advisers specialising in Business Risk Protection products.
Key highlights include:
· The number of enterprises in NZ is following an upward trajectory, with 605,000 enterprises in February 2023, up 1.8% from February 2022. This is on top of a 5.3% increase in the year to February 2022.
· The number of paid employees in these enterprises (not an official employment statistic) was 2.5 million, up 3% from February 2022.
· These enterprises operated across 641,560 business locations, up 1.4% from February 2022.
There has been a marked increase in new businesses across a range of sectors, indicating a healthy and growing economy. The data also reveals a positive trend in employment, with employees in large enterprises up 5.9% from February 2022.
Ministry of Business Innovation and Employment figures show 196,584 people entered NZ on work visas in the 12 months to September, up dramatically from 39,501 in the 12 months to September 2022. The arrival of these overseas workers further increases the pool of workers available and makes it much easier for employers to fill any vacancies.
Certain industries, such as construction; professional, scientific and technical services; and health care and social assistance industries, have shown significant growth. These sectors often have specialised insurance requirements, like protecting shareholder needs or covering key people within an organisation, providing a niche market for advisers.
Quality Product Research Ltd have recently completed independent research on Business Insurance lump-sum products, putting a wealth of information at advisers’ fingertips in order to make well-informed recommendations. With disability products soon to be included, advisers can offer a comprehensive suite of options to their clients.
Advicemonster has functionality that allows users to streamline the process of creating Business Statements of Advice (SOAs), speeding up the time spent on admin and freeing up more time to spend with clients. Please get in touch if you’d like a sample copy of a Business SOA. Advicemonster’s tools assist advisers in conducting a Fact Find and Needs Analysis and being able to offer highly personalised solutions.
The combination of up-to-date research and specialised tools allows advisers to educate new businesses on effective risk mitigation strategies. This is particularly crucial for sole traders and SMEs that may not yet be aware of the full range of risks they face.
To find out more about what Advicemonster can do for you, please contact Aneel Ravji on 0212160905 or ask us about our next online training sessions.
Legacy product rating project (an update)
As of 14 November 2023, the following legacy product research is available in our Standalone Head to Head:
• ANZ Life and Living 2015, 2016, 2017, 2020
• ANZ Lifestyle Protection 2009, 2010
• Cigna LifeOne 2014
• Co-Operative Bank 2013
• Countdown Life 2014
• MAS 2016, 2018
• Momentum Life 2019
• nib Premier Health 2017
• nib Easy Health 2018
• nib Top Private Hospital Cover Plus 2017
• nib Stay Well Classic 1996
• nib Hospital Cover EasyCare 2017
• NZ Seniors 2022
• OneChoice 2019, 2021
• Southern Cross Regular Care 2018
• Southern Cross Ultra Care 2021
• Westpac Gold Term 2010, 2012, 2017
• Westpac Term 1990-1995,1995-2000
The following legacy product research has been rated and will be loaded to our Standalone Head to Head in the coming weeks. If you’re interested in a rating for one of these products or have a product that you believe we should rate, please reach out to us on info@quotemonster.co.nz
• AA Life 2016, 2018, 2017, 2019, 2022
• ANZ Life and Living 2010, 2018
• ANZ Lifestyle Protection 2007, 2008, 2011, 2015
• AMP Vital Plus Crisis 2020
• ASB Absolute Health 2012
• Asteron Smart Life 2004
• BNZ Flexi Card 2014, 2015
• BNZ BillAssure 2005
• BNZ Men’s ReCover 2004
• Cigna Farmers Finance 1996/1998
• Guardian Assurance 1996
• Kiwibank 2010, 2018
• MAS 2013, 2017, 2021
• Mercer Bill Protection 2016
• nib Premier Health Business 2017
• nib Premium Hospital 2017
• nib Standard Hospital 2017
• NZHL 2019, 2021
• Pinnacle Life 2010
• SBS Bank 2014
• Sovereign Absolute Health 2010
• Tower Life 360 2011
• Westpac Gold Term 2018
• Westpac Term 2007, 2012, 2013, 2014, 2017
FMA pulls campaign after being accused of mocking fraud victims
As part of Fraud Awareness Week, the FMA was running videos on social media to help raise awareness of scams but the videos were removed after they were accused of blaming scam victims.
The FMA has pulled a video campaign after it was accused of mocking fraud victims. As part of Fraud Awareness Week, the FMA was running videos on social media to help raise awareness of scams. However, their execution of comedian Tom Sainsbury playing ‘boomer dad’ who gets scammed and loses money he was planning to use on a trip to France, has been accused of blaming scam victims.
Financial Adviser Rachelle Bland has said the FMA should be requesting banks improve their systems and Janine Starks is calling for banks to take more accountability in stopping frauds, for example by implementing matching account names and numbers.
Last week data from banks showed New Zealanders lost almost $200 million to scams in the year to September, up 8% from the previous year.
More daily news:
Asteron Life has appointed Kirsten Young as the National Manager Adviser Distribution
The NZCSF Level 5 version 2 is undergoing a five year review
Guy Dobson says the Level 5 qualification should be left alone
Tony Dench has started as Financial Advice New Zealand’s Interim CEO
Tony Dench has taken on the role of Interim Chief Executive Officer at Financial Advice New Zealand. Dench started on 13 November and will work three days a week while the Board undertake a search for a permanent CEO.
The Board of Financial Advice New Zealand has announced that Tony Dench will take the role of Interim Chief Executive Officer. Dench started on 13 November and will work three days a week while the Board undertake a search for a permanent CEO.
Dench has over 20 years’ experience working in the financial services and banking sectors in NZ. Dench spent five years as CEO of the SHARE and Newpark group of financial advisers until the end of 2022.
Tony’s goals for while he’s at Financial Advice NZ are to maintain the momentum, develop the membership and deliver the Thrive conference next year.
More daily news:
AIA has increased premiums for its private health and cancer cover
Trial data finds obesity drug Wegovy cuts risk of death by 18 per cent
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