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.
IFSO reminds kiwis to review their insurance policies
The Insurance & Financial Services Ombudsman Scheme is reminding New Zealanders to thoroughly review their insurance policies.
The Insurance & Financial Services Ombudsman (IFSO) Scheme is reminding New Zealanders to thoroughly review their insurance policies. Karen Stevens, the Insurance & Financial Services Ombudsman, has noted that some policyholders are unaware of specific limitations which can leave them without cover for something they thought was included. Stevens has cautioned kiwis of the need to familiarise themselves with their policy terms and conditions, paying particular attention to exclusions, as it is the consumer’s responsibility to understand the terms laid out in the policy.
More news:
Mark Banicevich believes new FAP regime creates opportunities for advisers
The FSC publish Life Insurance Industry Spotlight June 2024
Southern Cross Healthcare is looking for a Head of Enterprise Risk & Assurance
Rachel Wilson joins Fidelity Life as Business Manager Wellington region
Southern Cross release new online mindfulness practice available free to all New Zealanders
Southern Cross Healthcare sponsors Round the Bays fun runs, including Christchurch
The General Practice Owners Association has laid a complaint with the Commerce Commission over “unfair” and “illegal” contracts
Website upgrade: Southern Cross Healthy Lifestyle Reward
Another upgrade we’ve recently made to Quotemonster is how users can select Southern Cross’s Healthy Lifestyle Reward. This was reviewed following adviser feedback and shows how important it is to let us know if there is something we can do to increase your user experience.
Another upgrade we’ve recently made to Quotemonster is how users can select Southern Cross’s Healthy Lifestyle Reward. This was reviewed following adviser feedback and shows how important it is to let us know if there is something we can do to increase your user experience.
What is the Healthy Lifestyle (HLR) Reward?
The Healthy Lifestyle Reward is a 10% discount on premium for new members who meet certain healthy lifestyle criteria and applies for up to two years.
(i) To qualify the client must be aged 21 or older and answer yes to:
Are you a non-smoker?
Do you eat at least five servings of fruit and vegetables a day?
Do you do 30 minutes of moderate physical activity on most of the days of the week?
Women: do you drink 2 or less glasses of alcohol a day?
Men: do you drink 3 or less glasses of alcohol a day?
How to include the HLR on Quotemonster
Add in your client and health benefit details as normal, then click the company’s logo in your Result window, ensure Healthy Lifestyle Reward is selected, click Re-Crunch and your premium for Southern Cross will now include the 10% discount.
If you have any questions or feedback on this updated feature, please reach out to us on info@quotemonster.co.nz
Happy Crunching!
If you have an adviser – you tend to get better claim outcomes
Jon-Paul Hale questions the use of automated portals when it comes to claims time.
Regulatory reviews in Australia have found the claims acceptance rates for the life insurance industry between distribution channels. The difference is marked – claims acceptance rates for advised retail policies was 92.1% compared to 87.8% for direct policies. For a good review check out Jack Howitt’s article here.
Jon-Paul Hale emphasises the importance of advisers at claim time, which perhaps provides an explanation for part of the gap: Hale has questioned the use of automated portals when it comes to claims time. From his experience, there are plenty of claims where, had the clients claimed through the portals without his involvement, the clients wouldn’t have had such good outcomes. He gives a range of examples and cautions that clients can forget what cover they have and how it works – all at a time when they may be feeling overwhelmed from the medical situation they are facing.
On the other hand, the difference between group and retail policies in Australia leans back the other way – more towards how the policy was underwritten as a potential cause for the difference in outcomes. Group insurance policies have some of the highest claims acceptance rates at just over 95%. Howitt’s explanation is compelling:
“This is likely due to the fact that group life insurance policies are typically underwritten on a group basis, which means that insurers have less risk associated with each individual policy. Retail advised policies may have lower claims acceptance rates due to the fact that they are typically more complex and may involve higher risk individuals. Direct policies may have lower claims acceptance rates due to the fact that insurers have less information about policyholders.”
More news:
Adviser to pay former clients compensation after he breached their privacy and caused them stress
Stats NZ report finds Māori businesses lead in employee wellbeing and flexibility
Survey finds 90% of family doctor clinics plan to increase their fees
Setting up Commissions structure in Advicemonster
You can easily set up your commission rates and structure in Advicemonster so it automatically flows through to your Statement of Advice, find out how here.
You can easily set up your commission rates and structure in Advicemonster so it automatically flows through to your Statement of Advice.
Organisational changes afoot at nib
In the lead up to nib launching their Life and Living Benefits suite of products early next year, the health insurer has made some organisational changes.
In the lead up to nib launching their Life and Living Benefits suite of products early next year, the health insurer has made some organisational changes. A new distribution leadership team has been created, with the three key distribution role reporting to Chief Executive Rob Hennin.
Chris Carnall, Head of Distribution, is moving to the role of General Manager – Adviser Life and Living, leading the development of nib's new Life and Living Benefits suite for advisers.
Amanda Savill is joining nib to lead the adviser distribution team, where she will create a strategic and operational plan to deliver on service and growth for their advisers.
Pippa Leydon takes on the role of National Manager - Group, with responsibility for the strategy and growth of nib’s Group business, developing commercial and strategic relationships.
More news:
Shamubeel Eaqub notes the average Kiwi is unable to afford life insurance
Financial Advice NZ webinar 'Learnings from a FMA Monitoring Visit' 2 October
Financial Advice NZ Canterbury Branch Meeting 22 October
Setting Up for Success - How to Build a Great Mentor Relationship' webinar 15 Oct
mySolutions webinar 'Interviewing techniques: how to get people to open up' 18 Sep
mySolutions webinar 'Added benefits of mySolutions membership' 25 Sep
Resolution Life has appointed Moses Ojeisekhoba as its new President
Legal experts discuss Select Committee’s endorsement of the Contracts of Insurance Bill
Emma Moran and Rachel Taylor from DLA Piper have commentated on the changes the Select Committee endorsed to the Contracts of Insurance Bill.
“The Committee’s [Finance and Expenditure Committee’s] report on the Bill is good news for brokers because it recognises the often complex role that brokers play.”
Moran highlights that the report on the bill recognises that brokers can have tricky competing duties to their clients and insurers; that it upholds liability caps agreed between insurers and brokers; and allows insurers and brokers to retain existing agreed periods for payment of premiums.
Dentons also has a review of the Contracts of Insurance Bill.
More news:
Jon-Paul Hale discusses issues with income protection structures
The number of NZers affected by asthma or serious lung disease grows by more than 40% in three years
Legal and regulatory update for the life and health insurance sector
The Pae Ora (Healthy Futures) (Improving Mental Health Outcomes) Amendment Bill was read a second time; FMA join Global Financial Innovation Network; RBNZ publish analytical note around monetary policy decisions; FMA consult on regulatory returns for financial institution licensees; ASIC outline technological and operational resilience guidance; privacy concerns raised about IRD's use of taxpayers personal information.
11 Sep 2024 - The Pae Ora (Healthy Futures) (Improving Mental Health Outcomes) Amendment Bill was read a second time. https://bills.parliament.nz/v/6/955109f7-830e-4b94-2089-08dba9b9dfac?Tab=history
13 Sep 2024 - The Financial Markets Authority has officially joined the Global Financial Innovation Network (GFIN). GFIN is designed to facilitate cooperation between financial regulators worldwide, providing a platform to exchange experiences and strategies related to financial innovation. https://www.mpamag.com/nz/news/general/fma-joins-global-innovation-network/505407
16 Sep 2024 - The Reserve Bank of New Zealand has published an Analytical Note which shows monetary policy decisions that are not fully anticipated by financial markets lead to changes in interest rates and the New Zealand dollar exchange rate. https://www.rbnz.govt.nz/hub/news/2024/09/financial-market-reaction-to-monetary-policy-surprises
16 Sep 2024 - The Financial Markets Authority is consulting on regulatory returns for financial institution licensees. https://www.fma.govt.nz/business/focus-areas/consultation/consultation-regulatory-returns-for-financial-institution-licensees/
17 Sep 2024 - ASIC has released a letter to market participants outlining technological and operational resilience guidance, clarifying how to identify critical business services and notification of a major event. The guidance relates to the technological and operational resilience requirements detailed in Chapters 8A and 8B of the ASIC Market Integrity Rules (Securities Markets) 2017 and ASIC Market Integrity Rules (Futures Markets) 2017. https://asic.gov.au/about-asic/news-centre/news-items/asic-expands-operational-resilience-guidance-for-market-participants/?altTemplate=betanewsroom
17 Sep 2024 - The Office of the Privacy Commissioner has had privacy concerns raised from members of the public about IRD’s use of taxpayers’ personal information and hashing. OPC has contacted IRD for information so they can assess if this practice raises issues under the Privacy Act. https://privacy.org.nz/publications/statements-media-releases/care-is-needed-with-data-anonymisation/
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