Plastics are contaminating our bodies

Microplastics are everywhere, having been found everywhere from the deepest parts of the ocean to the Arctic and in everything from shellfish to beer. Now research has found that microplastics and nanoplastics are now contaminating fruits and vegetables as they grow. 

Microplastics, tiny pieces of plastic less than 5mm, and nanoplastics, small enough to cross membranes between cells, are increasingly infiltrating our bodies. Whether it’s tiny particles of your plastic water bottle shedding and being drunk or microbeads used in cosmetics such as body exfoliants making their way inside you (thankfully banned in NZ since 2018), or even just breathing them in, odds are you’re contaminated.

Scientists have found microplastics in human blood in almost 80% of people they tested. Microplastics have been found in human tissues, including the lungs.  Microplastics have been found in the faeces of babies and adults, with one study showing babies fed from plastic bottles are swallowing millions of microplastic particles a day and have higher microplastic concentrations in their stool than adults. Research has found microplastics present in both the maternal and foetal sides of the placenta and the particles were small enough to be carried in the bloodstream.

The impact on health is not yet known, but concerning findings from other studies show microplastics can damage human cells. Studies on mice have found that lab exposure to microplastics can disrupt the gut microbiome, lead to inflammation, lower sperm quality and testosterone levels, and negatively affect learning and memory.

Plastics contain a range of dangerous pollutants, including polychlorinated biphenyls (PCB’s) – manmade chemicals that have been shown to cause cancer in animals. Some chemicals in plastics like Bisphenol A (BPA) and phthalates have been found to disrupt the endocrine system and the hormones that regulate human growth and development.  

Toxic Per- and polyfluoroalkyl substances (PFAS), or ‘forever chemicals’ as they’re sometimes dubbed, have been found in many of the world’s plastic containers and bottles, raising concerns they’re leaking into foods, drinks, personal care products, pharmaceuticals, cleaning products and more. Why are they considered ‘forever chemicals’? Because they do not naturally break down, can accumulate in humans and have been linked to cancer, birth defects, liver disease, thyroid disease, falling sperm counts, kidney disease, decreased immunity and other serious health problems.

PFAS levels in water that was left in a fluorinated container for a year measured at a startling 188,000 parts per trillion (ppt). For context, some states allow as little as 5ppt in drinking water, while public health advocates say anything above 1ppt is dangerous.

Some tips for reducing your exposure to microplastics include: wearing clothes made of natural fibres such as cotton and linen; reducing your use of single-use plastics (think things like buying a reusable water bottle, using tea leaves instead of tea bags, choosing products packaged in glass or cardboard over those in plastic); avoid microwaving your food in plastic – even when it says “microwave safe”; regularly dust and vacuum.

Links between financial and mental wellbeing

Beyond Blue have produced a guide for those who work in the finance and mental health sectors to inform them of the relationship between money and mental health. The guide was produced as the ‘Money and Mental Health: Social Research Report’ – a collaboration between Beyond Blue and the Australian Securities and Investments Commission (ASIC) – found people experiencing financial challenges are at least twice as likely to encounter mental health issues than those who aren’t. While the guide has information on what services are available in Australia, we’ve pulled out some insights that are likely to correspond to the New Zealand market.

In 2023, 37% of people living in Australia reported that cost of living pressure was the issue having the greatest negative impact on their mental health. The productivity commission found that poor mental health is currently costing Australia up to A$70 billion a year. Small businesses accounted for over 97% of the 2.6 million Australian businesses in 2021-22 (similarly, 97% of all NZ businesses have fewer than 20 employees). In Australia, 22% of small business owners were diagnosed with a mental health condition.

One of the key takeouts is that financial challenges can cause a decline in mental health, and mental health challenges can cause a decline in financial wellbeing. The guide illustrates how people struggling can get into downward spirals that can progress faster than those experiencing them anticipate, and it can be hard to stop or reverse them.

While anyone can be affected by money and mental health issues, there are several population groups who experience disproportionate risk, including young people, first nations people, women, culturally diverse communities and small business owners. Those who fall into multiple groups are even more susceptible to financial and mental health challenges. The guide covers some of the key reasons why these population groups are at higher risk.

They give examples of ‘turning points’ – interventions or experiences that have led to improvements in people’s financial wellbeing and/or mental health. They showcase a major Australian bank that refocused their collections department on providing solutions that respond to root causes of mental and financial hardship and the turnaround was dramatic. Within 90 days of starting the program, 97% of customers were back on track with financial commitments, employee engagement soared by more than 25% points, and they had an AUD$70 million reduction in costs associated with loan defaults and operational efficiencies.

Beyond Blue have developed a continuum that can help you evaluate a person’s financial and mental wellbeing and suggestions on what you can do support them to move towards a more mentally and financially healthy future. If you or someone you know needs mental health support or is experiencing financial challenges, there are a range of organisations and resources available to help in New Zealand, you can find out more here and here.

Eating for gut health

It seems every time you read the newspaper these days there’s something new about gut health. Our understanding of how our gut microbiome works is still growing, but we know now that it can influence so many factors that impact our health - everything from weight, cholesterol and mental health to sleep and chronic diseases. The gut microbiome’s resume includes making vitamins, hormones, chemical messengers and amino acids, not to mention communicating with other vital organs including your brain, liver and heart. It’s so important that it’s earned the nickname the ‘second brain’. What we eat directly influences the composition of micro-organisms inside our gut. So, what should we be feeding it?

Dr Saliha Mahmood-Ahmed, a gastroenterologist in the UK, gives us tips on how to eat for gut health, including lots of prebiotics (fruits, vegetables, nuts, seeds, wholegrains, legumes and pulses, spices) and probiotics (fermented foods like live yoghurt, kombucha, sauerkraut). As Michael Pollen has said, “Eat food. Not too much. Mostly plants.” Dr Mahmood-Ahmed would like to see fruit and vegetables being ­prescribed to patients, as “long-term, that is going to be cheaper than a lot of the medication we are prescribing people.”

As an example of a gut nourishing diet, Professor Barbara Ryan, a consultant gastroenterologist, has written about what she eats in a typical day to keep her gut healthy.

In New Zealand, researchers have recently published findings that suggest how compounds derived from fruit and vegetables can positively influence gut health.

WHO warns loneliness is a pressing global health threat

The World Health Organisation (WHO) has proclaimed that loneliness is a pressing global health threat. The WHO has launched a three-year commission that will attempt to shape global policy by analysing high-risk areas of social isolation and encouraging government to foster new mental health solutions.

Research shows that social isolation and loneliness can have serious impacts on older people’s physical and mental health, quality of life and longevity. Lonely and socially isolated elderly people are at higher risk of cardiovascular disease, stroke, diabetes, cognitive decline, dementia, depression, anxiety and suicide. Loneliness can have comparable effects on mortality as other risk factors such as smoking, obesity and physical inactivity, with a 2015 meta-analysis found that people with chronic loneliness had a 26% increased risk of mortality. While more often experienced by people of an older age, young people are at risk too, with an estimated 5% to 15% of adolescents experiencing loneliness.

The issues presented by loneliness and social isolation are getting more recognition by those in leadership, with the United Kingdom appointing a ‘loneliness minister’ in 2018 and Japan following suit in 2021.

The WHO suggest a range of individual, community-level and societal-level strategies and interventions that can help reduce social isolation and loneliness. Suggestions range from social skills training and social activity groups at the individual level to improving infrastructure such as transport to creating laws and policies that address social cohesion and socio-economic inequality.

If you’re experiencing loneliness there are a range of organisations that can offer you help.

New medical price comparison database update

We have just uploaded a new version of the Medical Comparison database to all subscribers through your various file-sharing mechanisms. This is version 10_5 of the health or medical insurance price comparison, reflecting the following changes.  

Changes in V105:

• Updated nib rates effective 1/1/24

Updated AIA policy fee effective 1/1/24

Swiss Re write about Health and Wellness engagement impacts

Swiss Re have published a report on how to engage customers with a health and wellness programme. They write how the proliferation of health apps and wearables has led to consumers having more data about their health and lifestyle than ever before. Two thirds of consumers are open to sharing personal data or health results in return for a benefit, whether that’s personalised health advice, discounts or something else.

For insurers there are many benefits, from increasing the frequency of touchpoints, building customer loyalty and maximising lifetime customer value. For consumers the benefits include more relevant products, better price points, meaningful financial incentives and rewards and, best of all, improved health and longevity.

Swiss Re calculated that a successful program with a 25% engagement rate can be ROI positive, after accounting for the costs of launching and running the health and wellness engagement programme including policyholder rewards, premium reductions, initial setup costs and ongoing costs. If engagement rises to 40%, profitability can be up to 9% higher compared to not having a programme in place.

John Hancock in the USA is hiring behavioural scientists and drawing on gamification elements to help encourage policyholders to lead healthier lives. For example, when customers hit an activity threshold they can spin a wheel to win rewards.

Insurance Thought Leadership discuss the success of the Vitality programme. Vitality aims to increase people’s healthspan, the time in a person’s life where they experience optimal health, through a behaviour change incentive programme. Policyholders are nudged towards healthier lifestyle choices that they’re rewarded for in various ways including discounted premiums, discounts at places like gyms and free health checks. They list benefits of the programme to the insurer including reduced frequency and severity of claims, high engagement of policyholders and high levels of retention. Over the last three decades,

“Discovery's three-decade journey provides robust evidence that a significant increase in the level of physical activity reduces by 49% the mortality for individuals aged 45 to 65, and a remarkable 61% reduction for those older.  Positive impacts have further manifested within annual medical expenditures, where the most engaged participants have 15% lower claim costs than the less engaged, risk-adjusted by age and medical conditions. A longitudinal study on the people who showed a low level of physical activity during the initial six-month period showed a subsequent 14% reduction in hospital medical costs for the subgroup that notably elevated their engagement levels over the ensuing four and a half years.”

AIA NZ have recently released statistics on how AIA Vitality has contributed to notable shifts in health metrics. By September 2023 there was a 20% increase in members moving from an unhealthy body mass index (BMI) range to a healthier one. Similarly, there was a 51% improvement in blood pressure levels, 26% in cholesterol levels, and 81% in glucose levels.

Which is more important? Insuring your car or your life?

Pinnacle Life has a cool blog post which compares the cost of insuring a second hand car, with that of buying life cover. At the same time they pack in a few good points about what affects costs, what add-ons are available, and so on. It’s always good to remember that life insurance is a very cost effective way to get financial protection for the worst that can happen in life. Check it out at this link: Pinnacle Life compare the cost of life insurance to car insurance

Financial Advice New Zealand appoints new CEO

The Board of Financial Advice New Zealand has announced the appointment of Nick Hakes as Chief Executive Officer of Financial Advice New Zealand. From the release by the board:

“Nick relocates from Singapore, where he has been the Director of Market Development Asia at Kaplan Professional. Prior to this, Nick was General Manager, Member Services, Partnerships and Campus AFA at the Financial Advice Association Australia (AFA) in Sydney. 

Nick has held Director and Chair positions on the Board of Pro Bono Financial Advice Network, an industry-wide collaboration that connects financial advisers willing to provide pro bono financial advice with people facing personal health crisis. Nick has also served as the Vice Chair on the International Certification & Standards Board, a standing committee of the Asia Pacific Financial Services Association (APFinSA) that governs the professional certifications and education pathways of its professional adviser designations throughout the region.

I am sure you will all join me in welcoming Nick Hakes to our membership organisation. We are all looking forward to working with Nick and excited about the experience and energy he brings to the organisation. Nick understands the value of the collective voice of financial advisers and brings a wealth of international experience and expertise within the wealth management and financial advice industry, with an extensive background in building strategic partnerships, adviser-focused professional development frameworks, and membership growth for professional adviser bodies.

Nick will commence the role on Monday 26 February 2024. You will have the opportunity to meet Nick at the THRIVE Conference 2024.

Three of the Quotemonster team will be at the Financial Advice New Zealand annual conference, If you haven't booked, do get along, we would like to see you there. The conference is held in Wellington this year on 5 & 6 March. You can find more details about the conference here.

AI and Machine Learning are driving benefits and reducing headcount in the insurance sector

A survey of insurers by Rackspace has found that the implementation of Artificial Intelligence (AI) and machine learning (ML) technologies are driving benefits and enabling the reduction of headcounts.

The survey found over the past 12 months 62% of insurers had cut staff numbers due to the implementation of AI and ML. They found that the new technology enabled low-level analyst work to be completed by AI and ML. 52% of respondents said they had already realised substantial benefits from AI/ML, with a further 23% seeing modest benefits. 25% of respondents said it was too early to tell.

The benefits insurers listed from implementing AI/ML were

• 81% risk reduction, increased understanding of business/customers

• 79% increased sales

• 77% personalised marketing

• 75% increased productivity

• 73% increased revenue streams, operation cost reduction

• 69% improved customer satisfaction

• 67% faster time to profitability, reduced cost of new product development, ability to hire/recruit new talent

• 65% increased innovation

There are still some issues with AI, with 42% only ‘slightly trusting’ AI/ML results compared to 28% ‘strongly trusting’ results.

Talent and skill shortages were seen by 67% as the greatest challenge to further adoption of the technology; however 90% of insurers had grown their AI and ML workforce in the past 12 months.

Although this survey lumps AI and ML together there are some fundamental differences. Machine learning can be disconnected from the large volumes of training data that are used in generative AI such as Chat GPT. Although that may sound like a disadvantage, narrower pools of training data can make results from machine learning applications much more accurate for highly specific tasks. It also means that data does not have to be shared with generative AI engines – its can remain in confidential silos within the business.

ChatGPT recently put forward it’s arguments for how it can positively impact the insurance industry. While there are still plenty of cons to using ChatGPT right now, ranging from inbuilt biases and prejudices to its failure to comprehend nuance such as sarcasm, some insurance executives believe the underlying technology could be used as a starting point to build on and to jumpstart innovations in the sector.

At Quality Product Research Limited we agree that there are some great opportunities for implementation of AI and ML initiatives. With more than 15 million quotes and over 1.25million data points of data in our research databases we are well positioned to employ these tools to greater effect over the coming years.

Quality Product Research: Southern Research Advisory Board

In the last quarter of the year, we had our Research Advisory Board meeting with our Southern Representatives. We came away with tons of valuable feedback to implement in our research ratings on Quotemonster.

Independent Chair: Tony Dench

Southern Research Advisory Board members: Travis Hamilton, Jeremy Bernstein, and Wilhelmina Eveleens

Insurer Observers: Karl Sievwright (Southern Cross), Emma Wise (AIA)

QPR Representatives: Russell Hutchinson, Aneel Ravji and Doreen Dutt

The research advisory board reviewed the following topics:

·         The proposed rating changes for the non-surgical benefit. An important subject, this discussion resulted in adjustments following the Southern Cross changes to their contract and our reweighting the feature, and others to reflect the change in claims profile for this benefit.   

·         Revised Income and Mortgage Protection Claims Model, this resulted in a range of scenarios and details that will be included in our newest claims model.

·         A handful of research reviews we have accumulated based on adviser feedback, such as, the additional of Cerebral Aneurysm, optional items included in our extras or premier Income and Mortgage Protection options, and sharing on which products should be prioritised in our legacy research.

The feedback from our Research Advisory Board meetings has overall been very valuable to our Research team and allows us to strengthen our research ratings when we gain an insight into the adviser perspective.

We look forward to our meetings in 2024!

For more information on our Research Advisory board please click here.