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.
Simon Papa on what the Commerce Commission’s Banking report could mean for advisers
Simon Papa has written an excellent analysis of what the Commerce Commission’s final report on competition in the personal banking services sector could mean for mortgage advisers on Good Returns.
Simon summarises the recommendations likely to impact mortgage advisers, cautions that some of the recommendations may look different once implemented and acknowledges the Commission’s engagement with the advice sector after they released their March 2024 draft report. Simon posits that the recommendation that advisers make more applications to multiple banks is likely to result in more work for advisers, though this may be offset by banks improving application systems and making offers more comparable (and we’d love to hear what you think will end up happening!). Simon also discusses what a best interests duty could mean for advisers. It's a great read and we suggest you check it out.
We reached out to Simon around what advisers could do in light of these recommendations and he advised,
“Changes to law are required to implement most of the Commission’s recommendations. So advisers will have an opportunity to make submissions on the law changes. They can also try to engage with MPs and officials. Professional bodies will also get involved, so advisers can talk to them about adviser concerns.”
More news:
TSB to pay $2.47m penalty for CCCFA breaches
BNZ has implemented the Payments NZ Account Information API v2.1 standards
Relationship Charter Survey finds strong relationships between RBNZ and firms
FSF Conference 2024 is on 22 October
Two KiwiSaver schemes – Sharesies and Koura Wealth report larger losses but make revenue gains
Premium Comparison Database Upgrade v125
For institutional subscribers we have just distributed a new version of the Premium Comparison database v125.
For institutional subscribers we have just distributed a new version of the Premium Comparison database v125.
Changes in V125:
Partners Life IP and MP Prices have been updated to reflect changes to add-on options
We are now showing two sets of prices for Partners Life IP and MP: a basic option with no add-ons, and a Premium option which includes Critical Illness and Specific Injury add-ons. This now aligns with prices quoted on Quotemonster.
Please see our Product Definitions files for details.Asteron IP LOE Plus premiums have been adjusted to reflect changes to Specific Injury add-on prices
Fidelity Life policy fee has been reinstated (policy fee waiver promotion has ended)
Chubb Life Direct premium have been removed - the LifeOne product is no longer on sale. We will add the new Life & Living range in due course.
Note: This version does not contain any changes to underlying rates, just some adjustments to the way we are calculating some of the premiums
Research Deep Dive
Join the Quality Product Research team for a deep dive on research and the opportunity to ask any research questions you have direct to a panel of four of our research team.
Join our research team on the 19th of September for a research deep dive meeting. Subjects for the coming session are:
the challenges of comparison,
results of our research advisory board meeting consultation on non-Pharmac medicines coverage ratings,
new head-to-head report designs, and
the forthcoming IP research review.
We will also have time for your questions. The panel for the session will be Doreen Dutt, Kim Oliver, Sara Alani, and me. If your advice style is more technical, or if you just want to do a deep dive to bring yourself up to date with current rating issues, please email info@quotemonster.co.nz
Asteron Life rating downgraded
S&P have lowered Asteron Life's financial strength and issuer credit ratings to 'A' from 'A+' and given them a stand-alone credit profile of 'a-'.
S&P have lowered Asteron Life's financial strength and issuer credit ratings to 'A' from 'A+'. After a review, S&P has given Asteron Life Ltd a stand-alone credit profile (SACP), which reflects the insurer's satisfactory business risk profile, of 'a-'.
The reason given for the downgrade is an expectation of reduced support from Suncorp Group Ltd in the leadup to the sale of Asteron Life, due to be completed at the end of January 2025. S&P have stated that the ratings on Asteron are on CreditWatch because they believe they will likely lower the ratings if the sale proceeds, with a likely outcome of a one notch ratings downgrade.
More news:
Incentives for those advising consumer clients set to change on 31 March 2025
mySolutions webinar 'Asteron ConnectedCare' 4 September
UniMed Breakfast Series 'with Conrad Goodhew 8 October
Fidelity Life release details of their customer engagement forum
Fidelity Life announce Apollo enhancement
Financial Advice NZ Professional Ethics Workshop 26 September
Apex Advice looking for an experienced Marketing & Communications Specialist
Legal and regulatory update for the life and health insurance sector
APRA announces changes to internal structure and publishes latest Corporate Plan; The FMA will release a Climate-related Disclosures Monitoring Report in November; The FMA release series of videos to kickstart conversations around money; The FMA's Fairness Research roundtable with smaller-sized firms to take place in September; FAPs must submit their annual regulatory returns by 30 September; FMA will consult on questions they propose to ask in regulatory returns for financial institutions; Annual Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Conference 30 & 31 October.
28 Aug 2024 - The Australian Prudential Regulation Authority (APRA) today announces some changes to its internal structure designed to ensure it remains equipped to deal with emerging and future challenges. The changes will support APRA’s updated strategic priorities. The most significant change will see APRA move to having its five industry supervision groups being managed in two supervision divisions instead of the current three frontline supervision divisions – Banking, Superannuation and Insurance (encompassing general, life and private health insurance). From 2 September, the two frontline supervision divisions will be:
a General Insurance and Banking division; and
a Life Insurance, Private Health Insurance and Superannuation division.
https://www.apra.gov.au/news-and-publications/apra-announces-internal-reorganisation-to-better-support-strategic-priorities
28 Aug 2024 - The Australian Prudential Regulation Authority (APRA) has published its latest Corporate Plan outlining how it will maintain the strength and stability of Australia’s banks, insurers and superannuation trustees over the next four years. https://www.apra.gov.au/news-and-publications/apra-outlines-new-priorities-2024-25-corporate-plan
29 Aug 2024 - Climate reporting entities (CREs) with reporting periods ending 31 March 2024 have been lodging their climate statements on the Climate-related Disclosures Register. The FMA will be releasing a Climate-related Disclosures Monitoring Report in November this year, detailing their key monitoring findings and areas they would like CRE's to focus on for the next reporting period. https://www.fma.govt.nz/library/guidance-library/crd-monitoring-plan-2023-2026/
29 Aug 2024 - As part of Sorted Money Month, the FMA have released a series of videos designed to kickstart conversations around money. https://www.fma.govt.nz/library/campaigns/sorted-money-month-2024/
29 Aug 2024 - The FMA is hosting two Fairness Research roundtables with banks, non-bank deposit takers, insurers, fund managers, and financial advice firms to discuss fairness in financial services. The first event, with larger-sized firms, explored key topics including the interpretation of fairness from both consumer and provider perspectives, the role of governance in promoting fair outcomes, and future trends that may impact fairness in the sector. A second event, with smaller-sized firms, takes place in September. https://www.fma.govt.nz/news/all-releases/media-releases/understanding-fairness-in-financial-services
29 Aug 2024 - All licensed Financial Advice Providers must submit an annual regulatory return as part of licensing conditions. 31% have already submitted their regulatory return during July and August. The submission period will close on 30 September 2024. Regulatory returns should be submitted through the FMA Online Services portal. https://www.fma.govt.nz/business/online-services
29 Aug 2024 - In September The FMA will be publicly consulting on the questions they propose to ask in the regulatory returns for financial institutions. This consultation will be open for a 6-week period from 16 September 2024 to 25 October 2024.
29 Aug 2024 - The annual Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Conference is being held in Wellington this year, on Wednesday 30 October and Thursday 31 October. Hosted by the New Zealand Financial Intelligence Unit and The Association of Certified Anti-Money Laundering Specialists, the theme of this year’s conference is “Shifting Paradigms: Navigating the Future of Financial Crime”. https://www.police.govt.nz/fiu-acams-conference-2024
An Exceptional EA
If you're in need of an exceptional Executive Assistant (EA) to elevate your business operations, I have a highly recommended candidate who brings a unique blend of creativity, efficiency, and emotional intelligence to the table.
If you're in need of an exceptional Executive Assistant (EA) to elevate your business operations, I have a highly recommended candidate who brings a unique blend of creativity, efficiency, and emotional intelligence to the table. With a strong background in executive support, project management, and client relations, this professional excels at managing complex schedules, streamlining processes, and fostering a positive workplace culture. Their ability to anticipate needs and deliver solutions before challenges even arise sets them apart as a proactive and highly dependable asset to any executive team.
In addition to impressive technical skills, this candidate is deeply committed to personal and professional growth, continuously seeking new ways to enhance their capabilities. Their experience across various industries, combined with a creative problem-solving approach, makes them a perfect fit for dynamic and fast-paced environments. Whether it's improving workflows, managing high-stakes projects, or ensuring that day-to-day operations run smoothly, this EA consistently goes above and beyond to ensure success. If you're interested in learning more, please feel free to email me for further details.
Customise your Needs Analysis settings on Advicemonster
Find out how to customise everything from what product types you advise on to your default interest rate.
Did you know you can customise your needs analysis settings in Advicemonster? You can set what product types you advise on, change the after-tax annual interest rate, default interest rate and more. Find out how below.
nib New Zealand makes $21.2million underlying operating profit in FY24
nib new Zealand have released their FY24 financial results.
nib new Zealand have released their FY24 financial results. Key numbers include:
Underlying operating profit of $21.2 million, down from $33.4 million in FY23
Resident policyholder growth of 3.1%
Insurance revenue of $402.1 million, up 9.4% from FY23
Insurance service costs of $380 million, up 14% from FY23
Net assets of $91.8 million, up from $84.6 million in FY23
nib NZ Chief Executive Rob Hennin said of higher claims costs and utilisation rates
“We are focused on costs and containing inflation in the health sector as much as we can because those costs are passed along to our members… We have undertaken measures to help bring about operating efficiencies in the year ahead, including automating claims processing.”
More news:
Brent McGregor says balancing act between regulatory requirements and customer experience is tough
Consilium’s KiwiWRAP KiwiSaver Scheme has cracked the $100 million in funds under management
Simon Papa analyses the Commerce Commission's bank report and what it means for mortgage advisers
Research and website upgrades: what you need to know
QPR Database V16 has been released!
Our Research team have made some monstrously good updates to the QPR database recently.
QPR Database V16 has been released!
Our Research team have made some monstrously good updates to the QPR database recently. 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.16.0 | WEB V4.6.0
Our latest updates to Researchmonster include:
– Research for the following insurers are now available to include in your comparison:
o OneChoice:
· Life, Trauma (Accelerated), and TPD (Any Occupation Accelerated)
o Booster
· Super Simple Life
o Chubb Life & Living (replaces LifeOne in the main quote flow, however, can still be accessed via Standalone Head to Head)
· Life, and Trauma (Standalone)
o NZ Seniors
· Term Life
o Greenwich
· QuickCover Life
These changes have led to an update of our Product Map, click here to download the most recent version.
– Policy document update for Unimed Hospital Select effective 1 August 2024.
o Rating changes applied to:
· Loyalty Benefits, Non-Surgical Benefits, Child Features, and Exclusions
– Policy document updates for:
· AA Health
· AA Life
· ANZ Life & Living
· SBS (Term Life)
– Reviews:
o Based on adviser feedback, we have recently updated the Extras and Options on Income and Mortgage selections on Quotemonster:
· Fidelity Life’s Extras package now includes Specified Medical Conditions, Specific Injury Benefit, Death Benefit, and TPD
· Partners Life Options package now includes Injury Benefit, and Trauma Benefit
o Trauma remediation: sub-items in Paralysis, amount score in Financial Planning & Legal Advice
o Medical remediation: sub-item in Physiotherapy (Accuro)
Recent Pricing Updates
We are now quoting the latest Unimed medical rates effective 1 August.
Standalone Head to Head is a powerful tool subscribers can use to:
– Compare legacy products for replacement business
– Compare products from the same provider; e.g., AIA Critical Conditions vs Progressive Care
– Compare different product sets; e.g., Severe Trauma vs Comprehensive Trauma
– Quick head to head research comparisons
Please note this feature is still in Beta version so please reach out to us if you have any feedback that you would like us to consider in our next round of development.
Business Insurance is a powerful tool Advicemonster subscribers can use to quote, research, and run a needs analysis on for Life, Trauma, TPD and Key Person. We highly recommend joining us for our next online training session to learn more about the service, and as a thank you for attending we can offer a 14-day trial on your account for new users.
Upcoming training sessions:
– Introduction to Quotemonster
Quotemonster training session where we demonstrate the basic functions of our website, along with some handy tips and tricks along the way.
Friday, 30 August 2024 9:30 am-10:30 am
– Demystifying Advicemonster
Advicemonster training session where we demonstrate how to use our needs analysis and statement of advice (SOA) tools.
Friday, 30 August 2024 10:30 am-11:30 am
– Business Risk Research and SOAs with Quotemonster
Business risk pricing, research, and SOA demonstration.
Friday, 30 August 2024 12:00 pm-12:45 pm
– Research Deep Dive
Join our research team as we meet up online and have a discussion on a specific research topic.
If you have any questions or are interested in attending one of the above-mentioned sessions, please send us a request on info@quotemonster.co.nz
Happy Crunching!
Kiwibank report $202 million after-tax profit
Kiwibank posted a record $202 million after-tax profit for the year to June 30 2024, up 15% from the previous year.
Kiwibank has featured in the news a lot recently, from the Commerce Commission’s recommendation that the Government should consider what is necessary to make Kiwibank a disruptive competitor, to the release of Kiwibank’s latest financial results.
Kiwibank posted a record $202 million after-tax profit for the year to June 30 2024, up 15% from the previous year. Kiwibank were able to grow their lending book by 9.3% to $32.4 billion. Impressively, home lending grew 2.7 times faster than the market and business lending grew 3 times faster than the market. Deposits increased by $2.4 billion, growing the deposit book by 9.4% to $28.2 billion
Steve Jurkovich, Kiwibank CEO, has said a $500 million capital infusion would
“give us a lot of runway to keep growing as fast as we are now, which is 9.5%, 10% [per annum], which is pretty large gains. That sort of investment over the next three, four years would give good runway.”
"With the right support and delivery of the right business plan and right initiatives, I think we could double our size in five years.”
Jurkovich has also said it may not be essential for the bank to remain 100% NZ owned, pointing to other examples of successful majority owned businesses like Air New Zealand. Jurkovich cautions that any requirement to pay sizeable dividends could impact their ability to grow, given that capital growth to date has mainly been via retained earnings.
Mortgage advisers now account for around 35% of Kiwibank’s total mortgage book, having originated 71% of Kiwibank home loans this year. Kiwibank’s accredited advisers have grown to about 1,000 now, up from 250 at June 30, 2022.
More news:
Report on the MAS 2024 Annual General Meeting released
Antonia Watson says the big banks can't afford to be NZ owned
TSB respond to the Commerce Commission’s banking study
FinTechNZ Hui Taumata 2025 is on 11 March 2025
Investment News release their KiwiSaver annual report
Study finds a majority of New Zealanders feel financially uncomfortable