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.

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Deepfake scams on the rise

Research commissioned by MasterCard has found that 29% of New Zealanders and 18% of NZ businesses have been targeted by deepfake scams in the past year.

Research commissioned by MasterCard has found that 29% of New Zealanders and 18% of NZ businesses have been targeted by deepfake scams in the past year. Deepfake scams use generative artificial intelligence (AI) to impersonate individuals, with the aim of stealing their targets’ money or personal information.

Deepfakes scams can utilise video, images and audio and can look increasingly convincing. Confidence levels in the ability to correctly identify deepfakes are low, with only 12% of respondents confident they would be able to detect a deepfake scam. Deepfakes are eroding trust in public figures and digital platforms, with 41% of individuals being more sceptical towards celebrities and influencers; 61% of kiwis being less trusting of social media platforms; 40% of New Zealanders being less trusting of emails and 37% of respondents being less trusting of phone calls compared to the previous year.

Some steps businesses are taking to address these risks include employing identification verification for accessing sensitive information, offering cybersecurity training and conducting training on financial transactions.

 

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Chubb’s Underwriting Click to Chat function is live on Adviser Hub

AIA health premiums increasing from 1 November

AIA release latest version of Underwriting Guide

Link Financial Group appoints Luke Roberts and Quentin Holmes as national growth managers

Tony Vidler talks about the importance of focusing on existing client base

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Southern Cross has new Chief Communications & Brand Officer

Tony Reid has joined Southern Cross as its 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.

 

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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

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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.

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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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

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IFSO reminds kiwis to review their insurance policies

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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.”

 

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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.

Emma Moran and Rachel Taylor from DLA Piper have commentated on what the changes the Select Committee endorsed to the Contracts of Insurance Bill. Moran said

“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.

Read more about the proposal to create some regulation of the use of genetic tests in underwriting here.

 

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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.”

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nib New Zealand makes $21.2million underlying operating profit in FY24

nib new Zealand have released their FY24 financial results.

nib new Zealand have released their FY24 financial results. Key numbers include:

  • Underlying operating profit of $21.2 million, down from $33.4 million in FY23

  • Resident policyholder growth of 3.1%

  • Insurance revenue of $402.1 million, up 9.4% from FY23

  • Insurance service costs of $380 million, up 14% from FY23

  • Net assets of $91.8 million, up from $84.6 million in FY23

nib NZ Chief Executive Rob Hennin said of higher claims costs and utilisation rates

 “We are focused on costs and containing inflation in the health sector as much as we can because those costs are passed along to our members… We have undertaken measures to help bring about operating efficiencies in the year ahead, including automating claims processing.”

 

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Brent McGregor says balancing act between regulatory requirements and customer experience is tough

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Commerce Commission release banking competitiveness study

The Commerce Commission have released the Final Report on personal banking competitiveness.

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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Financial Advice NZ Central Branch Meeting 27 August

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Southern Cross Health Insurance opens nominations for Wayfinder Awards

ASB CEO Vittoria Shortt would like to see KiwiSaver policy changes

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IFSO needs to incorporate as a limited liability company for merger

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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.

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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Southern Cross Health Insurance recognised in the 2024 Reader’s Digest Trusted Brand awards

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