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.
Upcoming training sessions
We are hosting online training sessions on Researchmonster, Advicemonster and Business Risk/Research on a regular basis, we 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, Advicemonster and Business Risk/Research on a regular basis, we 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 – Wednesday, 30 October 2024 9:30 am-10:30 am
In this session, we will demonstrate the basic functions of our website, along with some handy tips and tricks along the way.
Demystifying Advicemonster - Tuesday, 29 October 2024 9:30 am-10:30 am
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, 29 October 2024 11:30 am-12:15 pm
In this session, Aneel will demonstrate how to use our business risk pricing, research, and SOA functionality.
If you would like to join either of these sessions, please email your request to info@quotemonster.co.nz
Happy Crunching!
KiwiSaver financial hardship withdrawals continue to rise
KiwiSaver hardship withdrawals are up significantly from this time last year. We take a look at the limited set of circumstances under which members can make hardship withdrawals.
There is a limited set of circumstances under which members can make hardship withdrawals: if you cannot pay your minimum living expenses; if you can’t keep up with your mortgage or rent; if you need to modify your home to meet special needs; if you need to pay for medical treatment or funeral expenses; or if you’re suffering from a serious illness. The withdrawal function is intended to be a last resort when you have no other options available.
The Financial Services Council has a set of guidelines illustrating how applications will be covered. The intent is to limit withdrawals to meet the basic necessities of everyday living. For example, accommodation expenses can include rates, insurance and basic maintenance but if someone was living in excessively luxurious accommodation and could move to more modest accommodation their excess accommodation costs aren’t regarded as a ‘minimum living expense’. Members are generally unable to claim for things like paying off fines, hire-purchase debt for non-essential expenses or travel to see a sick relative.
So how do members file for a financial hardship withdrawal? Members need to fill out the application, which can include a lot of paperwork – you may need to provide bank statements, proof of identity, pay slips, proof of address, quotes, information about your partners income, assets and expenses and so on. If a member is applying as they cannot meet their minimum living expenses, KiwiSaver Managers and Supervisors will use a weekly budget spreadsheet to analyse the members income, expenses, assets and liabilities to determine if there is a deficit. The budget will take into account basic food and grocery items, accommodation and associated costs such as rates, basic clothing, utilities, transport (up to two vehicles per household and public transport as applicable), general and medical insurances, medical and dental costs (excluding non-essential medical costs such as cosmetic dental treatment), school attendance costs, purchase and maintenance of normal and basic household items, reasonable costs for dependants with special needs.
The member may also need to show they had tried to find other ways of getting by, like accessing government assistance schemes or arranging different repayment arrangements from the bank. Reasonable alternative sources of funding need to have been explored and exhausted – If you have other liquid savings or investments, you will most likely need to have used those up first before withdrawing from KiwiSaver is an option.
After a holistic assessment of the member’s circumstances, if the member establishes they are unlikely to be able to meet minimum living expenses, then the withdrawal is permissible.
If you have a serious illness, you can withdraw up to the full value of your accumulation; however, if you are withdrawing due to an inability to meet minimum living expenses then you will generally be approved for living cost payments in 13 week allocations.
More news:
FMA chief to speak at Financial Services Federation conference
BNZ, Westpac and ASB offer assistance to customers affected by severe weather
FMA acts against misleading customers
The Financial Markets Authority (FMA) has been busy, with the news this week full of stories of AA Insurance New Zealand Ltd (AAI) being ordered to pay a penalty and civil proceedings lodged against ASB Bank Limited (ASB).
The Financial Markets Authority (FMA) has been busy, with the news this week full of stories of AA Insurance New Zealand Ltd (AAI) being ordered to pay a penalty and civil proceedings lodged against ASB Bank Limited (ASB).
AAI was ordered to pay a penalty of $6.175 million, for failing to apply multi-policy and membership discounts, as well as guaranteed no claims bonuses.
AAI was found to have misled customers about its multi policy discount offer in marketing material – marketing material said existing policy holders who added another policy would receive the discount immediately; however, AAI’s systems only applied the discount once the original policy came up for renewal. This issue affected 112,463 customers, who were overcharged approximately $4.89 million. In addition, AAI failed to apply discounts promised to NZAA members, affecting 90,129 customers who were overcharged approximately $2.95 million in total.
AAI were also found to have misrepresented that certain eligible customers would receive its guaranteed no claims bonus “for life”. Up until December 2011 AAI offered the bonus for each customer’s lifetime, as long as they remained insured with AAI. From 2012 the benefit only applied to the policy’s lifetime – yet AAI marketing continued to use the “for life” language without limitation. This affected 17,973 eligible customers, who were overcharged approximately $3.28 million.
Margot Gatland, FMA Head of Enforcement, said of the AAI judgement,
“AAI’s systems proved to be inadequate and its marketing was not kept in line with internal policies. This judgment sends a strong message to the industry that companies need to ensure their systems and processes are fit for purpose and customers’ interests put first.”
The FMA has filed civil proceedings against ASB for allegedly making false or misleading representations in regards to insurance products and banking services. Similar to AAI, ASB allegedly failed to apply multi policy discounts on ASB-branded insurance products, due to errors in the manual process at point of sale. Another issue arose when ASB staff misinformed customers with policies of insurance for caravans and trailers that they were eligible for the multi policy discount, despite those policies being ineligible. ASB also allegedly failed to consistently apply fee exemptions to certain customer accounts with access to ASB’s Fastnet Banking service, again due to failings in the manual processes. Between April 2014 and May 2022, a total of 23,062 customers were affected by the multi policy discount issue with the total value of overcharged premiums being approximately $2.8 million. During the same period, 2,435 customers were affected by the Fastnet Banking issue, totalling approximately $1,147,276 in overcharges. ASB has completed remediation work on both causes of action and has repaid affected customers, including use of money interest, and they self-reported the errors to the FMA.
Both of these cases demonstrate the willingness of the FMA to prosecute organisations who don’t fulfil their obligations to customers. They also highlight the importance of language in customer communications being crystal clear and that it is essential organisations have the systems-wide processes and checks in place to honour any discounts and offers made to customers. The FMA expect that if you make commitments to customers, you need to keep them, which we think is fair enough.
More news:
Executive Team changes at Partners Life
From 1 October 2024, there will be some changes to the executive team at Partners Life. Andries van Graan is now Chief Distribution Officer and Kate Dron is now Chief Customer Solutions Officer.
From 1 October 2024, there will be some changes to the executive team at Partners Life. Andries van Graan, previously Chief of Adviser Distribution, will be Chief Distribution Officer. Kate Dron, previously Chief and Appointed Actuary, will be Chief Customer Solutions Officer.
Van Graan’s new role will focus on strengthening partnerships with independent financial advisers and working to amplify Partners Life’s customer referral partnership with BNZ.
Dron’s new role will focus on ensuring that Partners Life’s solutions service a wide range of customer needs with a particular focus on enhanced simplicity and accessibility and includes establishing a establishing a business led data, analytics, and insights team.
More news:
nib extends three months free offer until 31 October 2024
mySolutions webinar 'KiwiMonster' 9 October
Financial Advice NZ webinar 'Understanding artificial intelligence in financial services' 16 October
Legal and regulatory update for the life and health insurance sector
FMA addresses feedback on liquidity guide; XRB appoint incoming CE; AA ordered to pay a penalty; RBNZ consulting on a revised access policy as part of review of ESAS; RBNZ publish Annual Report; XRB consults on amendments to Climate and Assurance Standards; FMA file proceedings against ASB for allegedly making false or misleading representations in relation to insurance products and banking services.
6 Oct 2024 - FMA sent a letter to licensed fund managers acknowledging the regulator had received feedback that the liquidity guide, as updated this April, is “preventing or disincentivising investment in private assets” and has been engaging with fund managers on the issue. https://investmentnews.co.nz/investment-news/fma-chief-hoses-down-fund-liquidity-guide-concerns-for-private-assets-cofi-entities-get-licensing-hurry-up/
7 Oct 2024 - The External Reporting Board today announced the appointment of Wendy Venter as its incoming Chief Executive, commencing 15 January 2025. Ms Venter will replace April Mackenzie, who announced in August her intention to step down at the end of a five-year term. https://www.xrb.govt.nz/news/latest-news/
7 Oct 2024 - AA Insurance New Zealand Limited (AAI) has been ordered to pay a penalty of $6.175 million for failing to apply multi-policy and membership discounts, as well as guaranteed no claims bonuses. AAI also misled customers about its multi policy discount offer in marketing material and misrepresented that certain eligible customers would receive its guaranteed no claims bonus for life. The High Court judgment follows proceedings brought by the FMA. https://www.fma.govt.nz/news/all-releases/media-releases/aa-insurance-to-pay-6-175-million-penalty/
7 Oct 2024 - The Reserve Bank of New Zealand is consulting on a revised access policy, as part of its ongoing review of the Exchange Settlement Account System (ESAS), a payments and settlement system used by banks. https://www.rbnz.govt.nz/hub/news/2024/10/esas-access-review-is-open-for-second-consultation
8 oct 2024 - The Reserve Bank of New Zealand has published its Annual Report covering the year from 1 July 2023 to 30 June 2024. https://www.rbnz.govt.nz/hub/news/2024/10/rbnz-releases-annual-report-2024
8 Oct 2024 - The XRB has published a consultation document on proposed 2024 amendments to Climate and Assurance Standards. The XRB is proposing providing relief by amending:
• NZ CS 2 Adoption of Aotearoa New Zealand Climate Standards
• NZ SAE 1 Assurance Engagements over Greenhouse Gas Emissions Disclosures. Consultation closes 30 October 2024.
8 Oct 2024 - The FMA has filed civil proceedings against ASB Bank Limited for allegedly making false or misleading representations in relation to insurance products and banking services.
The FMA’s proceedings have two causes of action. The first relates to the failure to apply multi policy discounts on ASB-branded insurance products. The FMA alleges that the misapplication of the multi policy discount arose through errors in the manual process undertaken by ASB staff at the point of sale for insurance products. A sub-issue involved ASB staff misinforming customers with policies of insurance for caravans and trailers that they were eligible for the multi policy discount, despite those policies being ineligible.
The second cause of action is in respect of ASB’s failure to consistently apply fee exemptions to certain customer accounts with access to ASB’s Fastnet Banking service, specifically: Society Cheque, Education Administration, and Business Focus accounts. As with the multi policy discount issue, the FMA alleges the failures arose through errors in the manual process undertaken by ASB staff. ASB did not have adequate systems in place to check that the fee exemptions were being applied correctly.
Using financial details to provide personalised risk recommendations on Advicemonster
Find out how to enter financial details to provide a recommendation for your clients' personal risk needs.
Find out how to enter financial details to provide a recommendation for your clients’ personal risk needs.
Health / Medical Insurance Premium Comparison Database Update
For subscribers to the medical price comparison database we have just distributed a new version. These rates have been implemented on Quotemonster already, this is the large format comparison database upgrade.
Changes in V111
Updated nib rates (including new policy fee) effective 1st October 2024
Legal and regulatory update for the life and health insurance sector
Upcoming XRB events; FMA appoints new Executive Director Transformation and Operational Delivery; NZFIU release latest CASH report.
3 October 2024 - The External Reporting Board is hosting two events on 8 November: IASB Work Programme for Company Directors and IFRS 18 Insights. https://www.xrb.govt.nz/news/pitopito-korero/
3 October 2024 - FMA appoints Kari Jones as Executive Director Transformation and Operational Delivery. https://www.fma.govt.nz/news/all-releases/media-releases/fma-appoints-kari-jones/
3 October 2024 - NZ Police Financial Intelligence Unit release “The CASH Report” for September 2024. https://www.police.govt.nz/sites/default/files/publications/fiu-monthly-report-sep2024.pdf
How to set client scope and priorities
Watch our video to find out how easy it is to set client scope and priorities on Advicemonster.
Watch our video to find out how easy it is to set client scope and priorities on Advicemonster.
Website upgrades: what you need to know – v4.6.2
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.4.6.2
Here are the changes that we’ve made:
Researchmonster updates:
Pricing and research for Chubb Life’s Continuous Trauma option is now available, the benefit allows customers to retain their Trauma Cover post-claim, providing continuous coverage up to a maximum of 4 times the Trauma Cover sum insured. This supports customers to retain their Trauma Cover for future unrelated conditions they may get, providing financial support for treatment and other costs.
To select this option on Quotemonster, click Instant Trauma Buyback in your Advanced Options.
Chubb Life also has also released a range of enhancements effective Thursday, 26 September which we are working to release over the next few weeks, from an early review by our research team, these enhancements will have low impact on weighting, to learn more, click here.
Expiry Age is now included in our policy wording reports, to include these in your presentation to clients.
- Click through to Research
- Select a Benefit (e.g. Trauma Standalone)
- Select an item (e.g. Heart Attack) which generates a pop up with the policy wording for each insurer
- Click Print, then Download to generate a PDF copy, which now includes Expiry Age
Advicemonster updates:
Advicemonster users will notice two logos at the top left of their screen, one labelled Quotemonster and the other, Businessmonster (how snazzy does Crunchy look with his tie and briefcase!). Quotemonster brings your recently saved personal quotes to hand, while Businessmonster shows business quotes, simply click to change between them as required.
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 – Wednesday, 16 October 2024 9:30 am-10:30 am
In this session, we will demonstrate the basic functions of our website, along with some handy tips and tricks along the way.
Demystifying Advicemonster - Wednesday, 16 October 2024 11:00 am-12:00 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 – Thursday, 17 October 2024 9:30 am-10:15 am
In this session, Aneel will demonstrate how to use our business risk pricing, research, and SOA functionality.
If you would like to join any of these sessions, please email your request to info@quotemonster.co.nz
Happy Crunching!
