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.
Legal and regulatory update for the life and health insurance sector
10 Dec 2023 - The Australian Labor government will create a new regulation-lite category of ‘qualified advisers’ as part of controversial reforms unwrapped last week. Banks, insurers, superannuation funds and others will be able to employ advisers under looser regulatory controls than professional counterparts. Qualified advisers will focus on providing simple financial advice, will be prohibited from charging a fee and from receiving a commission, and they will be required to meet a Government-mandated education standard. https://investmentnews.co.nz/investment-news/reg-lite-institutional-advice-proposal-divides-australian-industry/
11 Dec 2023 - The Reserve Bank of New Zealand has confirmed that New Zealand’s largest banks are now compliant with their Outsourcing Policy (BS11). https://www.rbnz.govt.nz/hub/news/2023/12/major-banks-compliant-with-rbnz-outsourcing-policy
Legacy product rating projects (an update)
As of 8 December 2023, the following legacy product research is available in our Standalone Head to Head.
As of 8 December 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 Private Hospital Silver 2017
• 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 2009, 2016, 2018, 2017, 2019, 2022
• ANZ Life and Living 2010, 2018
• ANZ Lifestyle Protection 2004, 2007, 2008, 2011, 2015
• ANZ Lifestyle Insurance 2014, 2015
• AMP Vital Plus Crisis 2020
• ASB Absolute Health 2012
• ASB Lifestyle Security 2007
• Asteron Smart Life 2004
• BNZ Flexi Card 2014, 2015
• BNZ BillAssure 2005
• BNZ Men’s ReCover 2004
• Cigna Bill Protection 2018
• Cigna LifeOne 2015
• Cigna Farmers Finance 1996/1998
• Co-operative Life 2018
• Greenwich Life 2018
• 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
• nib Life & Living 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
FSC’s latest Money & You research finds a perception gap between financial confidence and financial literacy
The Financial Services Council (FSC) have released their latest Money & You research findings. The research found a ‘perception gap’, with 82% of people feeling financially confident yet only 62% of people showing a real understanding of the four financial concepts tested.
The Financial Services Council (FSC) have released their latest Money & You research findings.
The research found a ‘perception gap’, with 82% of people feeling financially confident yet only 62% of people showing a real understanding of the four financial concepts tested.
Worryingly, the research found that 56% of New Zealanders aged 18 or older aren’t financially prepared for retirement, with that figure shooting up to 69% of women not feeling prepared for retirement. We are really keen to see this broken down by age group in future as we would expect most young people to feel the least prepared, and some of the group just pre-retirement to feature more of the better prepared. The fact that the figure rises sharply for women is probably a good reflection of the larger retirement gap that women face due to longer lives combined with, often, a gender pay gap, and also often, career disruption due to having children, which tends to make preparing for that retirement more difficult.
Of those in KiwiSaver, 42% are only contributing the minimum 3%, and 64% of employers are contributing the minimum 3% – leaving a vast gap between projected KiwiSaver funds at retirement and what’s needed for a ‘no frills’ retirement. It is hoped that other preparations are being made - such as paying off a home and investing in other ways. In practice we know that with a very high cost housing fewer will have paid off homes and that will also reduce the scope for non-KiwiSaver savings and investments for many.
The current cost of living is impacting people’s insurance buying behaviour. When it came to life insurance, the report found that expense was the highest reason for not purchasing insurance (63%) and 57% of respondents said they would take out an insurance policy if they had more money. 55% of people who had previously had health insurance have said that the cost of living is so high they can no longer afford it.
More daily news:
MAS are recruiting for a Healthy Practice Adviser in Wellington
Tony Dench calls on the government to give considered and deliberate engagement with the sector
Bruce Patten says he's seeing more people cancelling insurances
Legal and regulatory update for the life and health insurance sector
7 Dec 2023 - The Australian Prudential Regulation Authority (APRA) has published findings of a survey on the sustainability of group life insurance in superannuation, undertaken by a sample of registrable superannuation entity (RSE) licensees, life insurers and reinsurers. https://www.apra.gov.au/news-and-publications/apra-releases-findings-of-survey-on-life-insurance-superannuation
8 Dec 2023 - The FMA has released findings from their annual monitoring of the audit regulatory systems and processes of the New Zealand Institute of Chartered Accountants (NZICA). https://www.fma.govt.nz/library/reports-and-papers/accredited-body-report-new-zealand-institute-of-chartered-accountants/
8 Dec 2023 - The FMA has released findings from their annual monitoring of the audit regulatory systems and processes of CPA Australia. https://www.fma.govt.nz/library/reports-and-papers/accredited-body-report-cpa-australia/
8 Dec 2023 - The Reserve Bank of New Zealand has reminded retailers to train new cash handlers on fake note detection https://www.rbnz.govt.nz/hub/news/2023/12/reserve-bank-reminds-retailers-to-train-new-cash-handlers-on-fake-note-detection
Q&A with Karty Mayne from Rosewill Consulting
We had the pleasure of talking to Karty Mayne, Director and Compliance Consultant at Rosewill consulting.
We had the pleasure of talking to Karty Mayne, Director and Compliance Consultant at Rosewill consulting.
What services does Rosewill Consulting provide?
Rosewill Consulting was set up with a mission to make compliance sexy! If we don’t think it is who will!
We provide Licensing and Compliance Services for financial services businesses. We also conduct independent audits and compliance reviews and provide specialist training. We have an online compliance and training system that has an extensive library of up-to-date professional development material.
What do you see as areas of focus in 2024?
Here are my top three…
Newly licensed entities, such as Financial Advice Providers, Head Groups and other types of licensees will need to have a strong focus on implementation. Being regulated requires creating a workplan and delivering on it. Initial policies and procedures may have design flaws or not be sufficiently robust so this is an important time to make those key adjustments.
On a wider scale, the world is facing ongoing increases in the nature and volume of cyber-attacks. Regulators such as the FMA have published a lot of guidance on this but from our experience regulated entities still need a lot of help in this area.
The pace of regulatory change hasn’t slowed up at all. 2024 will introduce new obligations such as additional AML/CFT Regulation, Conduct Licensing, Deposit Takers Act and the review of the Insurance contract law to name a few. Plus, the Coalition government will surely be adding to this list.
Can you tell us a little bit about yourself and why you decided to start up Rosewill Consulting?
I was initially sceptical about moving into a risk and compliance role. However, I quickly learnt the importance of the role and the value it can add across an organisation. My time as a Regulator was an apprenticeship into all aspects of issues within financial services and gave me a broad insight to the challenges of all businesses, large and small. When I left, I wanted to share back what I had learnt to help strengthen the industry and provide a plain English perspective on governance, risk and compliance.
What area of compliance do you think Financial Advice Providers (FAPs) need the most help with? Do you see any changes to this with the new government coming in?
From our experience, most FAPs and their advisers still don’t really know the extent of their new regulatory obligations. I expect that the FMA will start to publish guidance to assist FAPs with implementation and help them mature their approach to complying with the regime. The Conduct Licensing is a great addition for New Zealand as it helps us lift our game for product providers and is great for consumers. Hopefully, the government has other priorities and lets the industry get on with meeting the fair conduct principles.
Could you tell us a bit about what your compliance and governance courses cover?
Over the last few years, we have been running course and coaching new Compliance Officers. Often the person has been thrown in the deep end and needs to have both the theoretical and practical understanding of their role. This year we added a focus on oversight and ran practical governance and compliance courses. The blend of running both together means that the business owners/directors can work through responsibilities with their compliance person and come with clear workplan for 2024.
What is one thing you wish someone had told you when you were younger?
To follow your passion and back yourself. I always knew that I wanted to run my own business and now wish I had got underway sooner. In saying that, I have loved every company I have worked for and each has taught me so much. It’s always the people around you who make the difference.
What’s the last book you read?
I just finished “Resurrection Walk” by Michael Connelly. It is part of a series about the characters of the Lincoln Lawyer Mickey Haller and Detective Harry Bosch. These books are now series on Netflix and so I had a resurgence of interest in reading the latest books! Easy holiday reading!
Disclosure: Quality Product Research Limited has used the services of Rosewill Consulting Limited and found them to be excellent.
More daily news:
Westpac wins five awards at the KangaNews Awards 2023
George Crosby has been appointed as the new chief investment officer for ANZ Investments
Suncorp appoints new Chief Customer Officer
Suncorp New Zealand has appointed Suraiya Phillimore-Smith as its new Chief Customer Officer, where she will be responsible for brand, marketing, communications, government relations and a growing sustainability function.
Suncorp New Zealand has appointed Suraiya Phillimore-Smith as its new Chief Customer Officer, where she will be responsible for brand, marketing, communications, government relations and a growing sustainability function. Phillimore-Smith is currently the Chief Marketing Officer at Westpac New Zealand, and will move to her new role at Suncorp on March 4. Phillimore-Smith has a range of experience working with some of the world’s largest brands, having held a range of marketing, strategy, brand and communications roles at Westpac, Vodafone and Sony.
More daily news:
nib release holiday period dates for new Group Health and Group Life & Trauma quotes
Link Financial Group selected as one of NZ Adviser’s Top Mortgage Employers for 2023
AIA complete their annual pricing review to account for the latest change in the CPI
AIA webinar 'Eat Well - Webinar by Katie Hunter' 5 December
KiwiSaver hardship withdrawals double
Auckland Centre of Research holding 'Women in Finance' event on 8 December
Legal and regulatory update for the life and health insurance sector
5 Dec 2023 - The Reserve Bank of New Zealand has announced two key decisions following the second round of public consultation on its liquidity policy review (C2). They have decided they will not adopt the international liquidity metrics as their existing metrics work well and there would be a high cost to change them. They have also confirmed the assets that will be classed as liquid under their new policy, which will be comprised of Level 1 and Level 2 liquid assets. Level 1 liquid assets will include NZ Government Bonds and related instruments. Level 2 liquid assets will include Local Government Funding Agency securities and highly rated Kauri securities, and will be subject to a cap. https://www.rbnz.govt.nz/hub/news/2023/12/key-liquidity-policy-review-decisions-announced
5 Dec 2023 - The Financial Markets Authority has published its annual report for the year to 30 June 2023. https://www.fma.govt.nz/news/all-releases/media-releases/fma-publishes-2023-annual-report/
Nick Astwick explains how Southern Cross Health Society remains economically sustainable
Nick Astwick, chief executive at Southern Cross, has spoken about how Southern Cross Health Society remains economically sustainable. He details the three key things that the not-for-profit friendly society relies on to keep it sustainable.
Nick Astwick, chief executive at Southern Cross, has spoken about how Southern Cross Health Society remains economically sustainable. He details the three key things that the not-for-profit friendly society relies on to keep it sustainable:
· Young and healthy members - Astwick talks about how having younger, healthier members keeps claims down.
· Prevention – a focus on preventing sickness from happening, like a pilot programme the Health Society is running that offers bowel cancer screening.
· Membership growth and retention – ensuring affordable coverage and accessible benefits to help maintain tenure.
More daily news:
Swiss Re release report on the global economic and insurance market
Partners Life "Last Performance” campaign wins at Agency of the Year awards
The FSC welcome the incoming government
Southern Cross Health Society Annual General Meeting 6 December
Asteron Life customers can score a $50 Prezzy card for every $500 in new premium, up to $5000
MAS webinar 'Financial wisdom for a purposeful retirement' 5 December
Sharesies has launched its KiwiSaver scheme to the general public
David Green says mortgage lending should be taken out of the CCCFA and given its own legislation
Chubb has appointed Adit Witjaksono as property manager for Australia and New Zealand
FintechNZ Annual Meeting 2023 rescheduled to 6 December
Legal and regulatory update for the life and health insurance sector
30 Nov 2023 - The Financial Markets Authority (FMA) has signed a Consultation Agreement with The Financial Markets Standards Board (FMSB) which formalises cooperation between the FMA and FMSB. https://www.fma.govt.nz/news/all-releases/media-releases/agreement-signed-by-fma-and-fmsb/
4 Dec 2023 - The Reserve Bank of New Zealand will fund trials which will test new ways for people, including retailers, to withdraw and deposit cash, including change and takings, at little or no cost to them. https://www.rbnz.govt.nz/hub/news/2023/11/reserve-bank-community-cash-trials-to-start-next-year
4 Dec 2023 - FMA releases ‘5 mins with the FMA’ podcast #10: What is outcomes focused regulation? https://www.fma.govt.nz/library/podcast/5-mins-with-the-fma-podcast-10-what-is-outcomes-focused-regulation/
4 Dec 2023 - The Australian Securities and Investments Commission (ASIC) and Australian Financial Complaints Authority (AFCA) have signed a memorandum of understanding (MoU) setting out how they will continue to work together to support a fair and efficient financial services sector. https://asic.gov.au/about-asic/news-centre/news-items/asic-and-afca-sign-memorandum-of-understanding/
Australia’s Federal Government seeks feedback on the use of genetic test results by insurers
Australia’s Federal Government has opened consultation on the impacts of life insurers utilising genetic test results in underwriting.
Under the Insurance Contracts Act 1984 consumers have a responsibility to provide information requested by life insurers, including any genetic testing results. In 2018, a report by the Parliamentary Joint Committee on Corporations and Financial Services identified concerns that life insurers using genetic tests in underwriting was negatively impacting participation in health research projects involving genetic testing.
In 2019, Australia’s life insurance industry introduced a partial Moratorium on the requirement to disclose genetic testing results. Life insurers could only request or use the results of a genetic test if the total amount of cover a person has exceeded set thresholds. The Moratorium also stated that life insurers would not require or encourage applicants to take a genetic test as part of the application. The Moratorium was introduced due to concerns that people would not undergo genetic testing for personal health reasons or participate in medical research that involved genetic testing because they feared that it could negatively impact their ability to obtain affordable life insurance.
A report by researchers at Monash University investigating the impact of the Moratorium found it is discouraging consumers from participating in clinical genetic testing and in medical research which involves genetic testing. The report also found that life insurers were not complying with the Moratorium, and were asking applicants about genetic test results when the applications fell below the financial thresholds. The report also deemed the financial limits were too low. The report’s recommendations include the Government amending legislation to prohibit insurers from using genetic or genomic test results to discriminate between applicants for risk-rated insurance and that the Government consider ensuring insurers are subject to a positive duty to not discriminate. Consultation is open until 31 January 2024.
We spoke to Russell Hutchinson to get a New Zealand perspective on this issue:
Currently New Zealand has no legislated approach to genetic testing. There are similar consumer movements to that in Australia, which highlight the risks to consumers and their families when they delay obtaining genetic tests because they are concerned about the impact on their ability to obtain insurance coverage. A good synopsis of this from the medical viewpoint is given in this Radio New Zealand piece. It does not discuss the value of having a functioning insurance sector or examine how this relies on the ability to charge different premiums for different risks or in some cases, decline to insure a person. Naomi Ballantyne offers a succinct summary of an underwriter’s perspective in this article at Good Returns.
Occasionally, consumer fears may drive choices which are also damaging to the insurance market – for example, delaying a test to take out coverage and then lapsing the coverage if the test results show no increased likelihood of developing the condition. There may be value in offering some form of reassurance to consumers to limit the impact of genetic testing on insurance. Personally, right now, I would encourage anyone contemplating a genetic test to place their health first and obtain the test.
The Financial Services Council (FSC) regularly reviews its stance and industry guidelines on genetic testing to ensure they reflect best practice globally; they have reiterated that it is important insurers understand a customer's risk profile as part of the underwriting process.
"Some insurers may ask customers to disclose known information about the results of their genetic tests. This is consistent with asking customers other questions about their risk profile - for example, their family history.”
"Genetic testing is not something that any of our members ask their customers to carry out. Overall, FSC believes a fair position is one that balances the interests of consumers and the medical community to advance genetic science, and which manages financial risks to insurers and all policyholders."
Recently the FSC has held a discussion group with representatives from the insurance industry and the medical community to discuss the challenges that genetic testing present. A working group has been established to improve outcomes from genetic testing. Currently, RiskInfoNZ is running a poll to find out if people will see a time when genetic tests will play a part in clients applying for life insurance.
More daily news:
Gold Band Finance is the first non-bank deposit taker to get an FMA Financial Institution Licence
Proposed changes to the NZCFS Level 5 will be published on the Ringa Hora website early next year