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.
Capgemini’s World Life Insurance Report 2023
Capgemini have published their World Life Insurance Report 2023, ‘The aging well opportunity: how trust and engagement can unlock growth for insurers’.
Capgemini have published their World Life Insurance Report 2023, ‘The aging well opportunity: how trust and engagement can unlock growth for insurers’.
This report looks at how people are living longer and healthier lives and the implications for individuals and organisations who will be impacted including life insurers, retirement advisers, pension providers, brokers and agents.
By 2050 3.2 billion people, 33% of the world’s total population, will be 50 years or older. The dependency ratio – the ratio of the dependent population (aged 65 and above) to the working-age population (aged 15 – 64) – of 15% today is predicted to increase to 26% by 2050. Currently 40% of the top 40 global life insurers’ assets under management are held by those 65 years or older – by 2040 most of these assets will be transferred to their beneficiaries aged 50+.
At a time of declining governmental support and increasing healthcare costs, individuals will need to shoulder more of the financial responsibility for aging well. The World Economic Forum predict the retirement protection gap (the difference between desired retirement income and actual income from pensions, savings and social security) will quadruple by 2050, to a staggering 400 trillion USD in markets with the largest and most established pension systems. In some cases, this will lead to those aged 65 and older having to work longer.
Worryingly, Capgemini’s 2023 Voice of the Customer survey of policyholders across 20 markets found that 60% of those 65 or older have not sought professional financial advice to prepare for retirement or to transfer their wealth. With demand for life insurance, long-term care services and financial advice predicted to skyrocket between now and 2030, there are plenty of opportunities for advisers to make their mark.
Consumers have called out product complexity (39%), limited awareness (39%) and lack of trust (28%) as their biggest obstacles to life insurance product adoption.
Capgemini have identified current gaps between what policyholders want and insurers can deliver, and steps insurers can take to foster deeper partnerships and enhance customer lifetime value. The steps include creating personalised and bundled aging-well propositions; streamlining the purchase experience; accelerating risk assessment; engaging more widely and frequently; and elevating the claims experience.
Capgemini call out the need for more advanced technology and more robust data analytics to help engage more effectively and productively with clients, delivering better recommendations and more personalised plans. They highlight the importance of delivering comprehensive and innovative aging-well value propositions that meet a broader range of customer needs. After all, strengthening relationships with aging policyholders and their beneficiaries is critical to safeguard assets under management.
More action needed to fight online scams
The exact amount lost to scammers is not known, but it must be large: estimates range from around $200m to $2bn a year:
· A Ministry of Business, Innovation and Employment (MBIE) survey, drawing on data from New Zealand’s 11 largest financial institutions, says Kiwis lost $198 million to online scams in the year to September 2023, or at least those directly involving banks.
· Extrapolating a survey of 1000 New Zealand adults by the Global Anti-Scam Alliance, Netsafe estimates that Kiwis lost a total of $2.05 billion to online fraud in the same period.
A common fraud is scammers, often calling or emailing their victims, impersonate organisations that could have a legitimate reason to call and to charge for a service. Once the victim agrees to pay, the money will be directed into an account the scammer can access. These names will generally not match. A key protection for consumers could be to disclose the name of the payee bank account to the payer.
Australia is introducing requirements for banks to help protect consumers from scammers.
Should NZ follow suit? Some basic measures to combat scammers (e.g. name and account number matching Consumer watchdog says NZ banks must from now reimburse all scam victims | interest.co.nz) have still to be implemented here, though work is progressing.
The New Zealand Banking Association announced they would implement name and account number matching, but the latest news we could find says more details will be released in April:
"We are currently looking at technical options and extensive work is underway to ensure compliance with existing privacy laws. This will enable a timeline for the initiatives, including implementation of a confirmation of payee service, which will allow people making an online payment from one bank account to another to check the name of the account they are paying. We expect to provide more detail by the end of April," says Beaumont in this piece: Banks progressing anti-scam initiatives, lobby group NZBA says | interest.co.nz.
So, it’s in the works, just happening very slowly – and we can understand why. Although core banking systems are typically common between the Australian parent and the New Zealand subsidiary there are differences in customer data and mobile applications. Each of these systems has to comply with local legislation and conventions about how we work. Each step that makes it more secure to make a payment also tends to make it a little bit more difficult to make a payment. It is easy for you to see that a payment to “Garry’s Gardening Limited” probably can go to an account named “Garry M Smith Gardening Limited”, but it is harder for systems to tolerate such ‘near-matches’.
Scammers will take advantage of near matches, much as they do with email addresses that sound similar to the organisations they are impersonating. When that happens, the game of cat and mouse will begin all over again. Nevertheless, it is still worth making it as hard as possible for them. It is also, perhaps, a question of prioritisation and will. Innovators like Akahu have been able to deliver a form of confirmation of payee – allowing them to claim that in this respect they are doing a better job of securing systems than much bigger organisations. That is worth saluting. Netsafe teams up with Akahu, Dolla for payee confirmation as banks linger - NZ Herald
Another area, probably for a separate post, is that banking apps should as standard avoid some of the accessibility features inherent in technology such as smartphones, which reduce the security of the accounts.
Legal and regulatory update for the life and health insurance sector
15 Feb 2024 - Income Tax (ACC Payments) Amendment Bill introduced into Parliament. https://bills.parliament.nz/v/6/37fe42b5-8ae1-47f8-408e-08dc2dc25b35?Tab=history
16 Feb 2024 - The RBNZ have published Adrian Orr's speech on the Monetary Policy Remit and 2% inflation delivered at the 2024 Economics Forum at The University of Waikato. https://www.rbnz.govt.nz/hub/news/2024/the-monetary-policy-remit
Business Risk Research and SOAs with Quotemonster (online session)
We're thrilled to announce our latest research into Business Risk products, including lump sum products and Key Person Cover. Stay ahead of the game and ensure your clients are well-protected with our in-depth insights.
🌟 Exciting News from Quotemonster HQ! 🌟
We're thrilled to announce our latest research into Business Risk products, including lump sum products and Key Person Cover. Stay ahead of the game and ensure your clients are well-protected with our in-depth insights.
But that's not all! Discover how you can effortlessly produce a Statement of Advice (SOA) tailored to your clients' business risk needs with our intuitive tools. Streamline your process and provide top-notch advice with ease.
Please email info@quotemonster.co.nz if you’re interested in joining us on Monday, 26 February 2024 11:00 am-12:00 pm to elevate your business risk insurance game!
This session will be hosted by our AdviceTech Lead, Aneel Ravji.
We look forward to seeing you there.
Climate change doesn’t make the cut in Aon’s 2023 Global Risk Management Survey top 10 risks
Aon’s 2023 Global Risk Management Survey has highlighted the top 10 business risks for the Asia Pacific region.
Aon’s 2023 Global Risk Management Survey has highlighted the top 10 business risks for Asia Pacific:
1. Cyber Attacks/Data Breaches
2. Economic Slowdown/Slow Recovery
3. Business Interruption
4. Failure to Attract/Retain Top Talent
5. Rapidly Changing Market Trends
6. Supply Chain/Distribution Failure
7. Regulatory/Legislative Changes
8. Increasing Competition
9. Failure to Innovate/Meet Customer Needs
10. Commodity Price Risk/Scarcity of Materials
Cyber breaches have jumped up the rankings since it first appeared in 2015, to take the number 1 spot. Of note, climate change didn’t make it into the top 10 business risks globally or for the Asia Pacific region. Survey participants ranked climate change 17th in terms of current global risks businesses are facing, and 12th in terms of future global business risks. However, global risk professionals rank climate change at 8th in their list of future global business risks and those in the insurance, natural resources and food, agribusiness and beverage sectors all list climate change in their top 10 current risks. As Aon points out, climate change “…directly impacts four of the top 10 risks: business interruption, changing market trends, supply chain or distribution failure and regulatory or legislative changes.”
New Zealand has been ranked the second highest natural disaster risk in the world by Lloyds of London, with the country experiencing more than 150 severe weather events and natural disasters since ICNZ began keeping records in 1968. Climate change is likely to exacerbate the frequency and severity of the weather events we experience.
Aon NZ CEO Melissa Cantell says
"With cyber risks, economic recovery and business interruption identified as the top risks organisations are facing today, there is a compelling need for a shift in mindsets around being better prepared. What is surprising are the risks that are unaccounted for in leaders' assessments of the challenges they must address, such as climate risk. Climate is not an emerging risk, but an urgent one, with increasingly monumental implications for businesses of all sizes. What leaders need now are insights from advanced analytics and modelling alongside innovative solutions that will help them make better decisions today and protect them in the future."
More daily news:
mySolutions webinar 'Want to earn extra money & take better care of your clients?' 21 February
The FSC release the full programme for their FSC24 Conference
Financial Advice NZ webinar 'Managing in Times of Pressure' 21 February
Financial Advice New Zealand members get complimentary registration to Markets Summit 2024
Government signs a Memorandum of Understanding for a third medical school
Fidelity Life appoint new Chief Information Officer
Fidelity Life has appointed Angela Henderson to the role of Chief Information Officer.
Fidelity Life has appointed Angela Henderson to the role of Chief Information Officer. Henderson is currently the GM Digital at Kiwi Property Group, and has over 15 years experience in financial services. Henderson will start in early May 2024.As part of her role, Henderson will take on Fidelity Life’s portfolio governance and delivery responsibilities.
Campbell Mitchell, Fidelity Life’s CEO, said
“Angela is a great addition to our team and a great fit for Fidelity Life. Her deep experience in portfolio governance, change management and product delivery, not to mention digital strategy and leadership, is something the team is really looking forward to tapping in to.”
More daily news:
nib's S&P Global Rating upgraded from A- to A
FSC release their KiwiSaver Industry Spotlight December 2023
Apex Advice Healthy Wealth workshop 28 February in Christchurch
Advisers must upload documents to competency documents to AIAHub by 15 March
AIA Plan Well webinar 20 February
Compliance Refinery’s Head of Governance, Melanie Purdey, resigns
nib welcomes two new non-executive directors to board
nib New Zealand has appointed Josephine Gagan and Sophie Haslem as non-executive directors to the board, effective 1 February.
Gagan is currently chair of the New Zealand Health Group, sits on the board of the Auckland Hospital Foundation and chairs the Minds for Minds Trust.
Haslem is chair at Kordia Group Limited, deputy chair at CentrePort Limited and a member of the boards of Rangatira Limited, Payments New Zealand Limited and Livestock Improvement Corporation.
More daily news:
Nick Stanhope believes underinsurance is a significant hurdle in NZ
What not to do in regulation
I have a piece over at goodreturns on the Financial Advice Association of Australia’s frustration with the current regulatory environment there. No prizes for guessing that they aren’t fans, and I’m not either. But do take a look: I would do anything for life, but I won’t do that - Good Returns
Southern Cross Health Insurance appoints Cath Lomax to Chief People and Strategy Officer
Southern Cross Health Insurance has appointed Cath Lomax as its Chief People and Strategy Officer. Lomax joins from Fisher Funds, where she was the Chief Client Officer.
Nick Astwick, CEO of Southern Cross Health Insurance said
“As well as being in the business of health, we're also in the business of people – be it serving our members or our people. Cath brings to this role a wealth of experience which will undoubtedly allow us to build on our reputation for being a great employer.”
Lomax was recently awarded the Auckland Emerging Director Award from the Institute of Directors Auckland branch for her work at Surfing NZ.
More daily news:
FMA proposes to run pilot on 'outcomes' style regulation with industry
Financial Advice NZ Masterclass - The psychology of financial planning on 4 March
Southern Cross Health Insurance appoints Cath Lomax to Chief People and Strategy Officer
Finance and Mortgage Advisers Association of New Zealand (FAMNZ) sets up in NZ
Website upgrades: what you need to know
The Quotemonster team have been working hard to improve the services that we offer our advisers.
If you’ve noticed we’re running a bit slower than usual, please refresh your page and scroll down to ensure that you’re on our latest version – QUOTE ENGINE V.3.0 B1 | QPR V.15.6 | WEB V4.5.6
The Quotemonster team have been working hard to improve the services that we offer our advisers.
If you’ve noticed we’re running a bit slower than usual, please refresh your page and scroll down to ensure that you’re on our latest version – QUOTE ENGINE V.3.0 B1 | QPR V.15.6 | WEB V4.5.6
Researchmonster updates:
- The ability to quote the $750 excess for Health Cover has been added
Advicemonster updates:
- Beta version of quoting, research, and needs analysis functions for Key Person Cover.
This means you can now produce a Business Statement of Advice (SOA) supported with pricing and research on Key Person Cover. If you or others in your organisation would like training on how to produce a business statement of advice (SOA) using Advicemonster, please email your request to aneel.ravji@qpresearch.co.nz
Rate changes:
- Asteron Life personal and business trauma recovery price updates effective 11 February 2024.
Training sessions:
We are hosting online training sessions on Researchmonster and Advicemonster on a regular basis and invite you and your team to join us if you’re interested in learning more about these new features. Our next sessions will be:
Quotemonster training - Wednesday, 28 February 2024 10:00 am -11:00 am
In this session Kelly Pulham, our National Partnerships Lead, will demonstrate the basic functions of our website, along with some handy tips and tricks along the way.
Advicemonster training - Wednesday, 28 February 2024 11:30 am -12:30 pm
In this session Aneel Ravji, our AdviceTech Lead, will demonstrate how to use our needs analysis and statement of advice (SOA) tools.
If you would like to join either of these sessions, please email your request to info@quotemonster.co.nz
Happy Crunching!
