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.
Te Wiki o Te Reo Māori - Māori Language Week
In light of Māori Language week, which runs from 16th to 23rd September this year, we’d like to give a shout out to Accuro for including this gem in their SmartCare and SmartCare+ policy document.
In light of Māori Language week, which runs from 16th to 23rd September this year, we’d like to give a shout out to Accuro for including this gem in their SmartCare and SmartCare+ policy document.
“whāngai means a child from your extended whānau who you raise or bring up within your family and who has been accepted as a participant in the member’s plan. A whāngai is considered a dependant under this policy.”
We spotted this when reviewing their updated policy document that launched at the start of this month, the term is used in sections on dependents, well done to Accuro for bringing te reo Māori into the spotlight and acknowledging our country’s unique history.
Basic te reo you could try to use today:
‘Kia ora’ is a greeting as well as a general expression of appreciation. In Māori, ‘tēnā koe’ is a formal greeting to one person, ‘tēnā kōrua’ is a formal greeting to two people, and ‘tēnā koutou’ is a formal greeting to many.
If you’re interested in learning more about Māori Language week, National Today does a great job of breaking it down, click here to read the full article.
Quality Product Research: Research Advisory Board – Central
We recently held our first Research Advisory Board meeting of the year with our Central Representatives and as usual received a lot of feedback to bring back to our team.
We recently held our first Research Advisory Board meeting of the year with our Central Representatives and as usual received a lot of feedback to bring back to our team.
Independent Chair: Tony Dench
Insurer Observers: Amanda Harlen (Asteron Life), Helena Harbrow (Partners Life)
Board members: Samuel Rees-Thomas, Louise Grinstead, Joshua Logan (stepping down)
QPR Representatives: Russell Hutchinson, Doreen Dutt
The research advisory board reviewed the following topics:
· Research report design, specifically a revamp of our Summary and Detailed Head-to-Head report to provide more details
· Allowing for more flexibility in how advisers can present reports.
· A review of our current trauma buyback options, we propose including an additional button, Buyback + Instant Buyback under the trauma Advanced Options and once selected, the best of the two scores will be quoted and displayed in the research.
· The proposed rating for non-PHARMAC, recently we created an infographic comparing non-PHARMAC medicines between providers and we will use this to revise the rating for this benefit within medical.
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.
Since the meeting we have the news that Josh Logan is stepping aside from the role for the time being, we thank Josh for his service and look forward to inviting him back at some point in the future.
If you’re interested in providing feedback on any of the topics above, please reach out to our research team on info@quotemonster.co.nz or join us for our research deep dive scheduled for Thursday, 19 September 2024 11:30 am-12:30 pm.
We look forward to visiting our Southern team later this year.
For more information on our Research Advisory board please click here.
Committee recommends Contracts of Insurance Bill moves forward
New Zealand’s Finance and Expenditure Committee has recommended that the Contracts of Insurance Bill move forward. After reviewing the bill, the committee proposed several key amendments.
New Zealand’s Finance and Expenditure Committee has recommended that the Contracts of Insurance Bill move forward. After reviewing the bill, the committee proposed several key amendments:
Insurers are allowed reasonable time to gather information when processing claims.
That dishonesty be treated as a lack of reasonable care rather than outright fraud.
That a power to create some regulation of the use of genetic tests in underwriting is included in the draft law.
Government officials anticipate the bill to be passed by the end of this year. Changes insurers will need to prepare for once the bill comes into force include reviewing existing contracts to ensure compliance with new consumer protection measures; preparing for potential regulations on the use of genetic data; and ensuring claims processing procedures meet the new ‘reasonable time’ requirements.
With regard to the power to regulate the use of genetic tests, the report states:
“We agree that this issue is important. Our view is that a cautionary approach to genetic testing is needed to avoid undue genetic discrimination. However, we also grappled with the question of how to address genetic testing in this bill. We considered the implications of different options, including a full legislative ban on “genetic discrimination”.
“Ultimately, we recommend inserting new regulation-making powers, in Part 3, new subpart 4A (clauses 86A, 86B, and 86C), that would enable the Governor-General, on a recommendation of the Minister, to prohibit or regulate the conduct of insurers in relation to genetic testing. Before recommending any regulations, we expect the Minister to conduct a full policy development and consultation process.”
More news:
Financial Advice NZ webinar 'Creating an equitable advice experience for couples' 25 September
Consultation for the Government’s draft Suicide Prevention Action Plan 2025-2029 opens
From 1 October 2024, Keytruda will be funded for eligible people with certain cancers
How to generate a SOA report
Generating a Statement of Advice with Advicemonster is quick, easy and efficient - find out how here.
Generating a Statement of Advice with Advicemonster is quick, easy and efficient - find out how here.
Upcoming 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.
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:
Introduction to Quotemonster – Monday, 16 September 2024 11:00 am-12:00 pm
In this session, we will demonstrate the basic functions of our website, along with some handy tips and tricks along the way.
Demystifying Advicemonster - Monday, 16 September 2024 2:00 pm-3:00 pm
In this session Aneel Ravji, our AdviceTech Lead, will demonstrate how to use our needs analysis and statement of advice (SOA) tools.
Business Risk Research and SOAs with Quotemonster – Tuesday, 17 September 2024 10:00 am-10:45 am
In this session, Aneel will demonstrate how to use our business risk pricing, research, and SOA functionality.
Checkmonster Demonstration - Tuesday, 17 September 2024 10:45 am-11:00 am
In this short session, Aneel will demonstrate how to use our newly released Checkmonster feature.
Research Deep Dive - Thursday, 19 September 2024 11:30 am-12:30 pm
Join our research team 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.
If you would like to join either of these sessions, please email your request to info@quotemonster.co.nz
Happy Crunching!
Legal and regulatory update for the life and health insurance sector
The Minister for Commerce and Consumer Affairs announces policy decisions on Financial Services Reforms; FMA publish Jane Brown's speech; APRA consultation on minor updates; new appointees to FMA board; ASIC release enforcement and regulatory update; Cabinet exempt buy now, pay later providers from CCCFA provisions; FMA publish research on the use of AI in financial services sector; Finance and Expenditure Committee recommends the Contracts of Insurance Bill move forward; Hon Andrew Bayly's August 2024 diary released; APRA propose changes to the capital framework for banks in relation to hybrid instruments; FMA publish insights from funds that claim to have ethical features.
5 Sep 2024 - The Minister for Commerce and Consumer Affairs has announced policy decisions on Financial Services Reforms and indicated the Government intends to introduce a bill in December 2024 addressing the proposed reforms.
For consumer credit legislation the decisions are to:
Regulate consumer creditors via a market services licence, to simplify and streamline current regulatory arrangements.
Remove the due diligence duty and attendant personal liability for senior managers and directors.
Retain the consequences for failure to make initial disclosure or disclosure of agreed changes, but only where the borrower or the FMA can show the failure caused harm.
Retain the high-cost credit provisions as they are currently (no changes)
Exempting Buy Now Pay Later providers from the fee requirements in ss 41 and 44A of the CCCFA
For financial services conduct legislation, the decisions are to:
Simplify and clarify minimum requirements for fair conduct programmes.
Retain the current open-ended definition of the fair conduct principle (no changes)
Require the FMA to issue a single licence covering different classes of market services, including for consumer credit where applicable.
Allow the FMA to rely on an assessment made by the Reserve Bank of New Zealand (RBNZ) in some circumstances.
Introduce change in control approval requirements.
Introduce on-site inspection powers for the FMA.
For effective dispute resolution, the decisions are to:
Enhance the process for reviewing the schemes (noting further work is underway in relation to key performance indicators, scheme governance arrangements and a single front door web portal). "
https://www.beehive.govt.nz/release/improving-access-finance-kiwis
5 Sep 2024 - The FMA publish Jane Brown's speech to the New Zealand Insurance Law Association 2024 Conference. https://www.fma.govt.nz/library/speeches-and-presentations/speech-to-new-zealand-insurance-law-association-2024/
6 Sep 2024 - The Australian Prudential Regulation Authority (APRA) has released for consultation a number of minor updates to the prudential framework for authorised deposit-taking institutions (ADIs), general, life and private health insurers and registrable superannuation entity (RSE) licensees. https://www.apra.gov.au/news-and-publications/apra-consults-on-minor-updates-to-prudential-framework-for-adis-insurers-and
7 Sep 2024 - Tracey Berry, Nicholas Hegan and Mariette van Ryn have been appointed to the Financial Markets Authority Board for a five-year term ending in August 2029, while Chris Swasbrook, who has served as a board member since April 2019, has been reappointed. https://www.goodreturns.co.nz/article/976523586/3-new-fma-board-members.html
9 Sep 2024 - ASIC released its Enforcement and regulatory update (1 January to 30 June 2024), which sets out recent outcomes in enforcement and regulation. https://asic.gov.au/about-asic/news-centre/find-a-media-release/2024-releases/24-199mr-asic-to-target-misconduct-in-banking-and-superannuation-sectors/?altTemplate=betanewsroom
9 Sep 2024 - Cabinet has decided to exempt New Zealand's three surviving fintech buy now, pay later service providers from default fee provisions in the Credit Contracts and Consumer Finance Act (CCCFA). https://www.interest.co.nz/personal-finance/129607/gareth-vaughan-questions-whether-fintech-buy-now-pay-later-sector-deserves
10 Sep 2024 - The Financial Markets Authority has published research on the use of Artificial Intelligence (AI) in New Zealand’s financial services sector. The FMA will host a roundtable on 1 October 2024 with the study participants to further explore how AI and GenAI is being used in New Zealand’s financial services and how firms are managing risks. https://www.fma.govt.nz/news/all-releases/media-releases/understanding-artificial-intelligence-in-financial-services/
10 Sep 2024 - New Zealand’s Finance and Expenditure Committee has recommended that the Contracts of Insurance Bill move forward and proposed several key amendments aimed at reshaping the insurance landscape. https://www.insurancebusinessmag.com/nz/news/breaking-news/committee-backs-major-shakeup-of-nz-insurance-laws-504842.aspx
10 Sep 2024 - Minister of Commerce and Consumer Affairs, Hon Andrew Bayly August 2024 diary released with the following potential financial services sector related meetings noted:
2 Aug 2024 – FIntech Industry Roundtable (Jason Roberts and Guests)
8 Aug 2024 – MEET: Commerce Commission and Commerce and Consumer Affairs Officials (MBIE and Comm Comm Officials)
9 Aug 2024 – VISIT: TSB Bank (Kerry Boielle and Larissa Vaughan)
15 Aug 2024 – MEET: Payments NZ (Members of the API Centre)
19 Aug 2024 – MEET: Commerce Commission Officials (John Small and Brian)
20 Aug 2024 – CALL : Chair of Commerce Commission (Dr John Small)
21 Aug 2024 – MEET: Retirement Commissioner (Jane Wrightson)
28 Aug 2024 – MEET: Commerce Commission - Monthly Meeting (Commerce Commission Officials)
29 Aug 2024 – MEET: FMA Board Chair and CE (Craig Stobo, Samantha Barrass and Edwin Metson)
10 Sep 2024 - The Australian Prudential Regulation Authority (APRA) has proposed changes to the capital framework for banks in relation to hybrid instruments to simplify and improve the effectiveness of bank capital in a crisis.
APRA is proposing that banks phase out the use of AT1 capital instruments (often called hybrid bonds) and replace them with cheaper and more reliable forms of capital that would absorb losses more effectively in times of stress. The total amount of regulatory capital that APRA requires banks to hold would remain unchanged and banks would remain ‘unquestionably strong’. https://www.apra.gov.au/news-and-publications/apra-proposes-update-to-bank-capital-framework-to-strengthen-crisis
11 Sep 2024 - The Financial Markets Authority has published insights from its supervision of funds that claim to have ethical features. The insights are based off findings from reviewing disclosure documents, advertising, reporting on sustainability progress, and whether investments held by funds align with their sector exclusion policies. https://www.fma.govt.nz/news/all-releases/media-releases/ethical-investing-disclosure-insights-update/
AIA appoints new Chief Technology Officer
AIA NZ has appointed Luke Longney as Chief Technology Officer.
AIA NZ has appointed Luke Longney as Chief Technology Officer. Longney joined AIA in 2021 as Head of Technology – Digital and progressed to Head of Technology Experience.
AIA NZ CEO Nick Stanhope said
“We’re aiming to deliver the best possible online experience for our customers, advisers and partners, as well as our employees that support them. With his extensive experience and commercial background, Luke is well placed to lead the teams responsible for enabling and uplifting our digital delivery and capability into the future”.
More news:
Bell Gully have a good overview of the recently announced financial services regulation reforms
Rick Willis talks about the importance of not cancelling cover until you have moved to new insurance
AIA are finalists for two awards at the 2024 NZ Law Awards
mySolutions webinar 'Interviewing techniques: how to get people to open up' 11 Sep
Website upgrades: what you need to know
Our IT Development team have been working hard to improve the services that we offer our advisers as well as improving user experience.
Our IT Development team have been working hard to improve the services that we offer our advisers as well as improving user experience.
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 V.4.6.1
Here are the changes that we’ve made:
Researchmonster updates:
The Compare Premium chart now shows the total premium and adjusts when you click the colour key to remove a benefit. If you do decide to remove a benefit entirely, don’t forget to head back to the benefit details, unselect and re-crunch to reflect this in your PDF research report.
The Blog feature will now take you to www.chatswood.co.nz, Chatswood serves the life and health insurance sector in New Zealand with market intelligence, data, and bespoke consulting services in conjunction with Quality Product Research Limited – a subsidiary that brings you Quotemonster.
Serious Trauma research is live on our normal quote flow and Standalone Head to Head, this includes Asteron Life’s Major Trauma, Partner’s Life Serious Trauma and AIA’s Progressive Care.
To quote this, simply select Accelerated or Standalone Trauma and click the Severe Trauma tickbox, you will need to split the amount between standard and severe to generate a quote for all three insurers.
If you’re interested in severe (and not standard) a handy tip is to enter in $1 to standard then the full amount for severe, however Asteron Life will drop off as they require a minimum sum insured of $5,000 for their standard trauma cover.
By splitting the cover amount, you can generate a quote that contains both AIAs’ Critical Conditions Cover and Progressive Care.
To get a comparison for AIA, ensure that your default trauma product is Critical Conditions, then when severe is selected, the comparison generated is split between Critical Conditions and Progressive Care.
This method does need more work in future and any feedback that you have can help us during the next stage of development, so please reach out to us with your thoughts.
Advicemonster updates:
A highly requested feature is now available for Advicemonster users, in our Business Insurance feature, users now have the ability to search for a company and pull through information from the New Zealand Business Register, this will be displayed in the Business Details section (further edits can be made) then shown in your Statement of Advice (SoA).
The following options are now available for quoting and research in Business Insurance:
- Business Events Increase Option
- Partial Disablement
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:
Introduction to Quotemonster – Monday, 16 September 2024 11:00 am-12:00 pm
In this session, we will demonstrate the basic functions of our website, along with some handy tips and tricks along the way.
Demystifying Advicemonster - Monday, 16 September 2024 2:00 pm-3:00 pm
In this session Aneel Ravji, our AdviceTech Lead, will demonstrate how to use our needs analysis and statement of advice (SOA) tools.
Business Risk Research and SOAs with Quotemonster – Tuesday, 17 September 2024 10:00 am-10:45 am
In this session, Aneel will demonstrate how to use our business risk pricing, research, and SOA functionality.
Checkmonster Demonstration - Tuesday, 17 September 2024 10:45 am-11:00 am
In this short session, Aneel will demonstrate how to use our newly released Checkmonster feature.
Research Deep Dive - Thursday, 19 September 2024 11:30 am-12:30 pm
Join our research team 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.
If you would like to join either of these sessions, please email your request to info@quotemonster.co.nz
Happy Crunching!
Winners at the 2024 FSC Awards announced
Congratulations to all the winners, finalists and nominees at the 2024 Financial Services Council (FSC) Awards.
Congratulations to all the winners, finalists and nominees at the 2024 Financial Services Council (FSC) Awards. We’re lucky to work in an industry with so many dedicated, innovative people who have a passion for what they do; the awards recognise some of the best and brightest among us.
FSC Acting CEO Haydee Stroud said
“…it was a privilege to be able to see such a diverse range and high calibre of merit. Entrants contributions to the financial services sector and to the wider New Zealand community have all played a part in growing the financial confidence and wellbeing of all New Zealanders.”
Contribution to Community Award – Toi Ora - nib and Ngāti Whātua Ōrākei
Emerging Trailblazer Award – Leigh Bennett, Fidelity Life
Excellence in Governance Award – The Compliance Company
Workplace Savings Award – Bruce Kerr, Professional Trustee
Excellence in Sustainability Practices Award – AIA New Zealand
Excellence in Wellbeing & Inclusion Award – Southern Cross Health Insurance
Team of the Year Award – Operations Team, Sharesies
Chair’s Award for Services to the Industry – Ana-Marie Lockyer: Chief Executive Officer, Pie Funds
More news:
Steve Wright questions why we index life insurance but not health insurance
Financial Services Federation welcome CCCFA reforms
FAMNZ to launch the Adviser Elevate series on 2 October
The FMA plans to review the mortgage advice sector
Report estimates additional value advisers add
ASB wins Excellence in Social Purpose Driven Marketing Strategy at the New Zealand Marketing Awards
ASB sponsor the Climate Change & Business Conference 2024
The FSC release their latest Money & You Report
The FSC have released their latest Money & You Report, ‘Consumer Resilience and the Road to Prosperity’. It paints a picture of New Zealander’s who have struggled with the cost-of-living crisis and are feeling financially pressured to the extent they have changed their spending habits, decreased their savings and have concerns about their ongoing ability to service debt.
The FSC have released their latest Money & You Report, ‘Consumer Resilience and the Road to Prosperity’. In all it paints a picture of New Zealander’s who have struggled with the cost-of-living crisis and are feeling financially pressured to the extent they have changed their spending habits, decreased their savings and have concerns about their ongoing ability to service debt.
Some key findings include:
49% are somewhat or very unconfident in the overall economy (up from 45% in 2023), with women older generations and Europeans more likely to be unconfident in the economy. Those who are receiving financial advice are more positive about the impact of the economic climate.
94% of respondents are concerned about financial issues, with the cost of living cited as respondents’ top financial concern (66% very concerned), followed by inflation (51% very concerned) and house prices (45% very concerned).
Financial pressures have resulted in a change in spending habits, with buying cheaper groceries (57%) and cutting back on takeaways (55%) and treat purchases (49%) the most common changes. Concerningly some New Zealanders have reported skipping meals (17%), limiting heating (24%) and avoiding medical treatment or skipping medication (16%).
31% of New Zealanders were unhappy with their financial situation this year (up from 22% in 2023 and 25% in 2022).
There has been a drop in the number of retirees with more than 10 years of retirement savings, and an increase in those with less than one year of current retirement savings.
82% hold investments, with KiwiSaver the most likely held investment type.
Troubling KiwiSaver trends include average member weekly contributions dropping 7.8% (comparing 2023 to 2021); hardship withdrawals are at an all-time high; the KiwiSaver gender gap continues to increase, now sitting at a $7,450 average balance difference between males and females. Most worryingly, the average KiwiSaver member who has been contributing all their working life may not have enough to support them during retirement, according to Massey University Retirement Expenditure Guidelines.
Those who have struggled to make recent debt payments have been more proactive, with 29% reaching out to their bank (up from 20% in 2023) or speaking to family or friends (38% up from 28%).
Research was conducted via online survey, with 2,002 respondents completing the data during March 2024.
More news:
Chubb Life Chief Executive Gail Costa is to retire in April 2025
Anna Schubert talks through self-development tips for advisers
Tony Vidler suggests how advisers can create compelling offers
Clive Fernandes writes of how AI can help personalise financial advice
‘Inspiring Success’ event takes place on 7 November in Auckland
mySolutions webinar 'SimpleWills and your estate' 11 September
Debate whether it is it time to boost KiwiSaver contributions at FSC pre-conference session
Value For Money report highlights top performing ethical KiwiSaver funds
Lloyd Burr writes about how hard it is to start a new bank in NZ
Inland Revenue is proposing to make fees charged for fund management exempt from GST