Southern Cross has new Chief Communications & Brand Officer

Tony Reid has joined Southern Cross as its new chief communications & brand officer. Reid started the role in September and his remit is to enhance the organisation’s communications strategy and brand presence across health insurance and healthcare services. Reid has previously held leadership positions at Kiwibank, Suncorp New Zealand and the Financial Markets Authority.

More news:

Advisers can update client contact details through a new self-service request form in AIAHub

RiskInfoNZ poll finds 60% agree that life insurance is too expensive for the average Kiwi

Health NZ’s Mental Health and Addiction Workforce Plan increases training places for mental health and addiction professionals

nib rates are now live!

We are pleased to confirm that the premium changes for nib, effective 1 October 2024 are live on Quotemonster.

There was a rate increase for Ultimate Health, Ultimate Health Max and the Specialist option, no changes to GP or Dental, Optical, and Therapeutic options.

Happy Crunching!

Southern Cross Health Society Group annual results released

Southern Medical Care Society Group has shared their annual results for the year ended 30 June 2024. By the numbers:

• Group deficit of $88.2 million after tax. $43.1 million of the deficit is attributable to a change in international financial reporting standards introduced this financial year. The balance of the deficit is driven by higher claims costs from a high inflationary environment combined with high member demand for private health services, particularly in the second half of the financial year.

• Group reserves of $470.7 million.

• Claims paid at a rate of $6 million per business day (up from $5.2 million in FY23).

• 15,196 net new members, with total membership now at 955,301.

• This represents 60% of the New Zealand health insurance market by customer numbers but 71% per cent of the value of all health insurance claims paid.

• 99% of claims were submitted electronically.

Southern Cross Health Insurance

• Reported a deficit of $99.1 million.

• Paid $1.498 billion in claims from $1.605 billion received in premiums.

• Claims costs increased 15% on FY23 (up 13.9% when adjusted for member growth).

• Premiums increased 9% on FY23 (up 6.6% when adjusted for member growth).

• 93.4 cents paid in claims from every dollar received in premiums (compared to an industry average excluding Southern Cross) of 73 cents.

• Operating costs grew by 4%, less than inflation.

• 3.2 million claims in FY24

• 50% of members claimed over the financial year.

• 39,326 virtual GP consultations with Care HQ.

• 4,635 annual health check-ups with MedPro.

• 4,016 online mental health sessions with Raise.

• Net promoter score of 53.7%.

 Nick Astwick, Chief Executive for Southern Cross Health Society said

“We have never been in more demand by our members as they prioritise their health needs, largely in the private system. In 2019 33% of our membership claimed, last year it was 50%.”

“The cost of claims in 2024 was steep and rapid, driven by a combination of price, volume, and the mix of claims. The growth in the volume of claims results from an increase in the number of members claiming, the frequency, and claims being made for more expensive procedures.”

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2024 Haven award winners announced

Committee recommended changes to the Contracts of Insurance Bill

Travis Hamilton says Total and permanent disability (TPD) cover is being underestimated

Jon-Paul Hale suggests ways insurers can improve systems for advisers

Tony Vidler recommends how advisers can value themselves appropriately

The Government has completed a cost-benefit analysis for potential third medical school

Wayne Langford appointed to the Board of the Mental Health and Wellbeing Commission

Legal and regulatory update for the life and health insurance sector

26 Sep 2024 - ASIC announced the two-year extension of its Consultation Agreement (Agreement) with the Financial Markets Standards Board (FMSB) to 25 September 2026. https://asic.gov.au/about-asic/news-centre/news-items/asic-extends-consultation-agreement-with-financial-markets-standards-board/?altTemplate=betanewsroom

26 Sep 2024 - Speakers and sessions have been announced for the ASIC Annual Forum, 14–15 November 2024. https://asic.gov.au/about-asic/news-centre/news-items/asic-annual-forum-2024-speakers-and-sessions-announced/?altTemplate=betanewsroom

27 Sep 2024 - The FMA publish their submission on the Finance and Expenditure Committee’s inquiry into banking competition. https://www.fma.govt.nz/assets/Consultations/FMA-submission-on-the-Finance-and-Expenditure-Committees-inquiry-into-banking-competition.pdf

30 Sep 2024 - The Council of Financial Regulators released an updated Regulatory Initiatives Calendar for the financial sector for Q3 2024. https://www.cofr.govt.nz/key-documents/regulatory-initiatives-calendar.html

FSC sees opportunities for increased contributions to KiwiSaver

KiwiSaver has been in the news recently with funds under management surpassing the $100b mark and the Financial Markets Authority (FMA) releasing their KiwiSaver Annual Report 2024. The Financial Services Council (FSC) have welcomed the insights from the FMA report and said they see opportunities for increased contributions. Kirk Hope, CEO of the FSC said,

“With KiwiSaver funds under management surpassing the $100bn mark, this is a great opportunity to look at KiwiSaver contribution settings and how we can make it affordable over time so that New Zealanders can have dignity in retirement.”

“Increasing contribution levels, in combination with financial literacy that helps New Zealanders understand the benefits and mechanisms of KiwiSaver, are key to driving better retirement outcomes,”

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nib join the Sustainable Business Council NZ

Asteron Life, Chubb Life & Fidelity Life are finalists at the New Zealand Insurance Industry Awards

Fidelity Life employees have unlimited access to LinkedIn’s library of courses

IFSO take their first enforcement proceeding against a Participant

Jon-Paul Hale recommends advisers are clear in explaining unfunded medicines

Workplace Savings End of Year Function 2024 on 4 November

Fidelity Life offer advisers opportunity to go on professional development course

FinTech NZ Annual Meeting on 6 November

Retirement Commissioner says there’s a “crucial need” for all political parties to support a stable retirement policy

Mental Health Minister announces Child and Youth Mental Health and Addiction Prevalence Survey

Legal and regulatory update for the life and health insurance sector

24 Sep 2024 - The External Reporting Board (XRB) has announced that within the month they will publish a consultation document exploring options for transitional adjustments to the Aotearoa New Zealand Climate Standards.  https://www.xrb.govt.nz/news/latest-news/

24 Sep 2024 - The Financial Markets Authority have published their KiwiSaver Annual Report 2024. https://www.fma.govt.nz/library/reports-and-papers/kiwisaver-report/

26 Sep 2024 - The RBNZ have published their submission to Parliament’s Finance and Expenditure Committee Inquiry into Banking Competition, which outlines the RBNZ’s financial stability mandate, and highlights areas where they can support competition in the banking sector. https://www.rbnz.govt.nz/hub/news/2024/09/rbnz-releases-banking-competition-select-committee-submission

Objectives Settings in Advicemonster

This quick tutorial takes you through how to set the client’s objectives in Advicemonster.

New Active Benefits are now available to Accuro policyholders

Accuro Policyholders now have access to a range of Active Benefits, as part of their UniMed membership. While policy cover remains the same since the transfer of Accuro’s insurance portfolio to UniMed on 31 May, Accuro members can now access a range of UniMed member benefits. Benefits include:

• 20% off sitewide Parachute first aid (available until 31 Oct 2024)

• 15% Off Allianz Travel Insurance

• 20% Off MoleMap Checkups

• 30 days free at Snap Fitness

• Get an intro to 9Round Fitness

• Free Hearing Health Checkups

• Discounts at Specsavers Optometrists

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mySolutions webinar 'Creating strong customer engagement through Booster's client and adviser facing tools' 2 October

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ANZIIF offer an Insurance Risk Management Study Course

TSB are looking for a Head of Customer Operations

Entries to the Southern Cross Wayfinder Awards close 30 September

Terry Ball says Robo-advice has a long way to go

KiwiSaver passes milestone of $100 billion of funds under management

Westpac-McDermott Miller Employment Confidence Index fell by 2.2 points to 89.2 in the September quarter

The Banking Ombudsman Scheme saw a record number of cases

Calls for a public education campaign around consumer data right (CDR) regime

This week is Mental Health Awareness week

AIA launch new campaign offering customers up to three months off their premiums

AIA NZ has launched its latest campaign which offers new and existing customers up to three months off their premiums.

• First month free when customers take out a new eligible insurance policy between 18 September and 22 November 2024, and have the policy issued by 23 December 2024.

• Second month free when customers add and activate AIA Vitality membership within 6 weeks of the policy being issued.

• Third month free when customers reach Silver Status with AIA Vitality within the first 10 months.

• Existing AIA Vitality member at Silver Status or beyond who buy a new eligible policy, automatically get three months premium-free on the new policy.

More news:

The Adviser Platform is offering its CRM system free of charge

Kirk Hope has started his appointment as Chief Executive Officer at FSC

Financial Advice NZ's partnership with Massey University’s Financial Education and Research Centre extended for three years

The Adviser Platform Conference 2024 is on 18 October

Australian life insurance customers who stay loyal to their insurer likely to be paying higher premiums than new customers

Of the roughly 14,000 known chemicals in food packaging, around 25% have been found in the human body

Legal and regulatory update for the life and health insurance sector

18 Sep 2024 - The Reserve Bank of New Zealand has refreshed its chart pack of Financial Stability Indicators that help to inform its assessment of financial stability risks. The updated indicators feature data on: 
• Households;
• The housing market;
• Businesses and agriculture;
• The resilience of Banks and Non-Bank Deposit Takers; and
• Liquidity, funding and financial markets.

https://www.rbnz.govt.nz/hub/news/2024/09/rbnz-releases-updated-financial-stability-indicators

19 Sep 2024 - The Reserve Bank of New Zealand have given a development update on the Tara-ā-Umanga Business Expectations Survey. They plan to run two more pilots (in October 2024 and January 2025) before expecting to commence regular publication of the April 2025 survey in May 2025.

19 Sep 2024 - The Financial Dispute Resolution Service's Members' Forum and Annual General Meeting is on 22 October 2024, 3.30 pm. https://fdrs.org.nz/resources/news/fdrs-members-forum-and-annual-general-meeting-2024/

19 Sep 2024 - ASIC welcomes the new Australian financial market infrastructure (FMI) laws, which introduce new powers essential to ensuring a stable and efficient Australian financial system.  The Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 strengthens the existing regulatory regime, ensuring ASIC and the Reserve Bank of Australia (RBA) (together, the Regulators) have strong and dependable powers to monitor, manage and respond to risks related to FMIs. https://asic.gov.au/about-asic/news-centre/find-a-media-release/2024-releases/24-208mr-asic-receives-new-powers-under-financial-market-infrastructure-reforms/?altTemplate=betanewsroom

23 Sep 2024 - The Australian Prudential Regulation Authority (APRA) has released its response to its July 2024 consultation on the remaking of Prudential Standard APS 117 Capital Adequacy: Interest Rate Risk in the Banking Book (Advanced ADIs), which is due to sunset on 1 April 2025. https://www.apra.gov.au/news-and-publications/apra-remakes-prudential-standard-aps-117-capital-adequacy-interest-rate-risk