Winners at the 2024 FSC Awards announced

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

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The FSC release their latest Money & You Report

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.

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Southern Cross release their Healthy Futures Report

Southern Cross have released the Healthy Futures Report 2024, which surveyed 2,000 New Zealanders about their health and wellbeing behaviours. Some of the key findings include:

• The biggest concerns for New Zealanders were the cost of living (91%); violence in society (86%); not having access to good, affordable healthcare (84%); and affordable housing, mental health and not having access to cancer treatment services all at 82%.

• Health professionals remain the main source of health information (64%), followed by online articles/websites (52%), but social media is increasing in popularity with young people and Pasifika people (up 6% to 27%).

• A majority of people seek treatment immediately (12%) or within a day or two (47%), though 10% usually don’t seek professional advice or treatment.

• The main barriers to accessing healthcare include cost (35%) and wait times being too long (34%). There has been a jump in people not being able to access healthcare at the time they want (up 4% to 20%).

• When it comes to dental treatment, the main barriers are cost (60%) and not being covered by medical treatment (13%).

• New Zealander’s define ‘healthy’ as mental wellbeing (70%), avoiding smoking and tobacco (70%), getting enough sleep (67%), eating a balanced diet (67%) and emotional wellbeing (66%).

• Physical health concerns include level of fitness (65%), making sure kids eat healthy foods (65%), long term physical health effects (65%) and family health and wellbeing (65%).

• The average kiwi exercises for 30 minutes, three times a week – 61% don’t feel they are getting enough exercise. Being too tired (33%) and not having enough time (32%) continue to be the main barriers to exercising.

• While 92% of kiwis consider themselves knowledgeable about what healthy food is, 82% consider healthy eating to be expensive and 74% would like to lose weight.

• ·The top emotional wellbeing concerns are concentrated around family, with kiwis concerned about whether their children will cope with the pressures of life (60%), not having enough money to support myself/my family (55%) and parents/relatives getting elderly and needing care (51%).

• Only 44% of New Zealanders consider themselves as getting enough sleep, with those living with kids or living with a disability being more sleep deprived than others. Reasons given for not getting enough sleep included having too much to think about (49%), going to bed too late (41%) and being anxious or stressed (40%).

• While 88% consider work life balance to be important, only 33% consider they currently have a good balance. Factors kiwis consider as important to achieving a good work/life balance include having flexible working hours (43%), switching off from work when finished for the day (43%) and sticking to set work hours (34%). Conversely, factors contributing to a negative work/life balance include workload being too high (60%), financial pressures (46%) and not having flexible working hours (40%).

• Actions New Zealanders are taking to look after their emotional health and wellbeing include keeping your brain stimulated (60%), spending time outdoors (58%), nurturing and maintaining relationships (54%) and spending more time with family (52%).

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Commerce Commission release banking competitiveness study

The Commerce Commission have released the Final Report on personal banking competitiveness. The 14-month market study found

“a stable, highly profitable, two-tier oligopoly with no disruptive maverick and a lack of obvious or aggressive price competition.”

The study found little strategic differentiation between the major banks and found their growth targets focus on maintaining market share and protecting margins and profitability, limiting competitiveness and innovation.

The Commission’s recommendations to Government can be grouped into four key areas and broadly speaking involve making Kiwibank a more disruptive competitor, accelerating progress on open banking, ensuring the regulatory environment better supports competition and empowering consumers.

While both the Finance and Mortgage Advisers Association of New Zealand (FAMNZ) and Financial Advice New Zealand (FANZ) have welcomed the report, after criticising the draft report which was released in March.  Since then, the Commerce Commission has engaged with both associations as well as other representatives from the mortgage industry to better understand the role advisers work.

Leigh Hodgetts, country manager of FAMNZ, has called out the Commerce Commission’s statement that advisers should put more emphasis on price, saying that there are many factors around individual circumstances that must be considered when a consumer takes a loan.

Financial Advice New Zealand said it would be seeking clarity on the recommendations, in an effort to determine any unintended consequences.

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Survey highlights increasing concerns among kiwi workers about their mental and physical health

The 2024 Workplace Wellbeing survey, conducted by nib New Zealand and the Employers and Manufacturers Association (EMA), has found that 80% of respondents have been negatively impacted by the current cost-of-living crisis.

• 64% are concerned for the mental health and wellbeing of their family

• 56% are worried about their own mental health and wellbeing

• 52% are concerned about the risk of burnout at work

• 50% said the rising cost of living has negatively impacted their mental health (rising to 63% of 16 – 30 year olds)

In more positive news, 61% said their workplace proactively manages wellbeing, up from 53% in 2022. Fewer employees are being impacted by understaffing (47% down from 64%), poor work-life balance (36%, down from 42%), and the pressure to work long hours (34%, down from 39%).

Kiwis are putting more value on systems that prioritise employee wellbeing, with 60% rating Employee Assistance Programmes (EAP) as important, and 72% valuing wellbeing initiatives and subsidies. The value of employer-provided insurance continues to grow, with 64% considering medical and health insurance a benefit they look for when switching jobs, up from 57% in 2022, 48% valuing income protection illness cover and 43% looking for life insurance benefits.

Rob Hennin, Chief Executive at nib New Zealand, said

“There’s no better time than now for employers to stand up and proactively support their teams’ mental and physical health, empowering them to perform at their best knowing there’s someone in their corner no matter what happens. Fostering this positive workplace culture starts from the top down, so it’s just as important for business leaders to embody these values in their day-to-day.”

The survey collected responses from 1,229 NZ workers this May.

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Southern Cross Health Insurance unveils policy updates

From October 22, Southern Cross Health Insurance (SCHI) is ushering in a series of policy updates. In addition to adopting plain language in some of it’s policy documents in an effort to improve clarity, the updates include enhanced allowances for breast reduction and breast symmetry; expanding coverage for treatments such as unilateral and bilateral TMJ, periurethral injection for incontinence, cochlear implant receiver/stimulator prosthesis and minimally invasive glaucoma surgery; lifting the excess requirement on certain benefits under plans with an excess e.g., surgical allowances, obstetrics and the GP minor surgery benefit; broadening member access to mental health care; increasing the number of healthcare services that must be accessed through Affiliated Providers.

SCHI is also changing the way it communicates changes to some documents that form part of some policies – listing them on the SCHI website and updating them regularly.

Regan Savage, Chief Sales and Marketing Officer for SCHI says,

“Healthcare is dynamic and fast-changing. Health technology, drugs and healthcare services are constantly being improved, so Southern Cross regularly reviews its policies and the way we engage with members, with an aim to remain sustainable and affordable.”

Our research team are looking at the pack of documents that will be considered together and include sub-limits and eligible procedures in this online document alongside the policy wording in our review of the rating of the product.

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Fidelity Life has extended their 3 months premium free offer until 31 December. All new customers who take out an eligible policy will have their premiums covered for the first 3 months.

The offer is available to eligible new Platinum Plus, Platinum Plus Level Term, Mortgage Protectors and NZHL Life policies that are illustrated between 1-May and 31-December 2024, submitted within 30 days of the illustration being generated and issued within 6 months of the offer period end date.

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Partners Life appoints new Chief Risk Officer

Partners Life has appointed James Greig as Chief Risk Officer. Greig joins from Southern Cross Health Society, where he is the Head of Risk. Greig has more than 20 years’ experience across insurance and business roles in both New Zealand and Australia. He has held senior positions across strategy, operations, technology and risk roles, including six years as Director of Supervision at the Financial Markets Authority.

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Poll finds expectation of higher growth in health insurance advice than life insurance advice

A riskinfoNZ poll has found that advisers are expecting to see more growth in health insurance advice than life insurance advice in the near future. Currently, 41% of respondents expect health insurance to generate the most business, compared to only 23% expecting life insurance to generate the most business. 30% of respondents expect a 50/50 split between health and life insurance advice.

We’d love to hear your thoughts, what do you see the split as being in your organisation over the next 6 – 12 months?

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IFINZ publish report on diversity

The Institute for Finance Professionals New Zealand Inc (INFINZ) has published a report on diversity, Insights Research in Support of a Diversity, Equity & Inclusion Action Plan for INFINZ, 2024. In particular, the report focuses on Māori representation and inclusion across the finance sector, and women’s representation in senior roles.

Barriers to Māori representation and inclusion included: lack of representation at senior levels to drive change; a lack of representation at all levels; Māori values not being understood or embraced. Barriers identified for women’s representation in senior roles included: recruitment practices and networking practices not favouring women; an unwelcoming finance sector public image; needing flexible working and strong paid parental leave policies in place; current leaders being resistant to change; career breaks for childcare/caregiving roles.

Stakeholders came up with a range of ideas for how to implement change. For Māori representation and inclusion, ideas included: showcasing Māori role models; connecting with iwi and Māori community networks; inclusive recruitment, including targeting and investing in young people; quotas and targets; embracing te ao Māori; recognising and remunerating for cultural practices; having a Māori network in the finance sector; building a charter or accord, supported by training and resources.

For women’s representation in senior roles, ideas for change included: inclusive recruitment; showing women role models in the sector; having quotas and targets; have coaching, mentoring and sponsorship programmes; offering flexible promotion pathways and roles/support for those returning to the workforce; strong paid parental leave policies; building a charter or accord, supported by training and resources.

Of the ideas for change, INFINZ have narrowed these down to a list of actions areas to consider as part of its future DEI activity. The areas for consideration include: a communications and awareness campaign; te ao Māori training and education; supporting the development of a Māori finance network; a Tūakana Tēina network and a DEI organisational network; scholarships; male allyship programmes; training and development for parents returning to work; advocacy and support. They also consider supporting a charter or accord covering recruitment practices; gender and ethnic pay gap reporting; cultural safety programmes; remuneration for cultural services; having women on recruitment panels and shortlists; paid parental leave top-ups and the ability to be promoted while on leave; paid parental leave targeting men; increasing the availability of high-quality part-time roles; implementing returner programmes and policies.

We’d be interested in hearing your views – what does your organisation currently do well? What initiatives would you like to see implemented?

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