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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Chubb launches underwriting chat service

Chubb has launched a new chat function on their adviser hub site that allows advisers to ask the underwriting team questions.

Chubb has launched a new chat function on their adviser hub site that allows advisers to ask the underwriting team questions. Once the conversation is completed a chat transcript is able to be downloaded, for advisers to submit with the application or save to their customer files. You can find out more on their quick guide and their explainer video.

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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.”

 

More news:

Asteron Life announce MDRT Grant Programme recipients

NZFSG named as one of the Most Innovative Insurance Companies

Fidelity Life working to implement a data governance strategy

ANZ add BlinkPay to their approved third party payment providers

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

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FSC sees opportunities for increased contributions to KiwiSaver

KiwiSaver has been in the news recently with the FMA releasing their KiwiSaver Annual Report 2024. The FSC have welcomed the insights from the FMA report and said they see opportunities for increased contributions.

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,”

 

More news:

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

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Asteron Life rating downgraded

S&P have lowered Asteron Life's financial strength and issuer credit ratings to 'A' from 'A+' and given them a stand-alone credit profile of 'a-'.

S&P have lowered Asteron Life's financial strength and issuer credit ratings to 'A' from 'A+'. After a review, S&P has given Asteron Life Ltd a stand-alone credit profile (SACP), which reflects the insurer's satisfactory business risk profile, of 'a-'.

The reason given for the downgrade is an expectation of reduced support from Suncorp Group Ltd in the leadup to the sale of Asteron Life, due to be completed at the end of January 2025. S&P have stated that the ratings on Asteron are on CreditWatch because they believe they will likely lower the ratings if the sale proceeds, with a likely outcome of a one notch ratings downgrade.

 

More news:

NZFSG introduce several changes within their distribution team, including appointing new Regional Manager Zane Low

Incentives for those advising consumer clients set to change on 31 March 2025

mySolutions webinar 'Asteron ConnectedCare' 4 September

UniMed Breakfast Series 'with Conrad Goodhew 8 October

Fidelity Life release details of their customer engagement forum

Fidelity Life announce Apollo enhancement

Financial Advice NZ Professional Ethics Workshop 26 September

Apex Advice looking for an experienced Marketing & Communications Specialist

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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.

 

More news:

Tony Vidler recommends advisers can evidence why their advice was suitable at the time

mySolutions webinar 'The meeting before the meeting' 28 August

Asteron Life sale should be completed by the end of January 2025

Asteron Life profit after tax fell by 27% to $19m

Financial Advice NZ Central Branch Meeting 27 August

Financial Advice NZ webinar 'Financial advice is moving from product to people and from money to meaning' 4 September

Southern Cross Health Insurance opens nominations for Wayfinder Awards

ASB CEO Vittoria Shortt would like to see KiwiSaver policy changes

The FMA publish the latest 'Money with Mary'

IFSO needs to incorporate as a limited liability company for merger

Suncorp Group net profits after tax are up by nearly 12%

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What advisers think of KiwiSaver

At our latest roadshows, we’ve been lucky enough to have Generate KiwiSaver Scheme join us, giving advisers insights into the benefits of offering KiwiSaver advice. We’ve also been finding out what our roadshow attendees think about KiwiSaver.

At our latest roadshows, we’ve been lucky enough to have Generate KiwiSaver Scheme join us, giving advisers insights into the benefits of offering KiwiSaver advice. We’ve also been finding out what our roadshow attendees think about KiwiSaver.

To date, the results show that for those advisers who are already offering advice on KiwiSaver investments, the top reasons for offering KiwiSaver are diversifying revenue, building a KiwiSaver book for long term value and adding value to clients. Advisers have told us that performance, ease of withdrawals and alternative fund options are most important to clients when choosing a KiwiSaver provider. And 27% of advisers were interested in additional resources or support related to KiwiSaver advice and independent research.

If you haven’t joined us already, come along to one of our remaining roadshows to find out more – along with info on KiwiSaver we’ll be highlighting some major new research, talking about two new regtech tools to help keep you safe, giving you a sneak peek at Kiwimonster, and much, much more.

 

More news:

Fidelity Life extend 3 months free until 31 December 2024

Michael Weston talks about key priorities at Partners Life

Jon-Paul Hale highlights the good advisers do

Asteron Life are looking for a Lump Sum Claims Specialist

Study finds three-quarters of respondents have realised the importance of financial knowledge

FAMNZ launch inaugural Adviser Elevate series on 28 August

AIA sponsor the Parliamentary Rugby Team

Charlene Overell is the Financial Advice New Zealand Volunteer of the Year

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FSCL sees significant increase in complaints over the past year

Financial Services Complaints Limited (FSCL) has revealed that complaints rose by 6% in the last year, to 1,426.

Financial Services Complaints Limited (FSCL) has revealed that complaints rose by 6% in the last year, to 1,426. Of these, complaints against financial advisers were up by 18% and complaints against insurers were up by 14.5%. The biggest driver of complaints was against lenders, particularly involving car, personal and small business loans. In all, new disputes involving formal investigations by FSCL increased by 10% to 359.

FSCL Financial Ombudsman Susan Taylor has said

“We expect this high level of complaints to persist as long as economic conditions remain difficult. The new rules increasing our financial loss compensation to $500,000 (previously $350,000), which took effect in July, could also lead to a further rise.”

 

More news:

Quotemonster has added a KiwiSaver comparison and research service

Russell Hutchinson writes about issues insuring those with complex incomes

Financial Advice NZ webinar 'How the latest Dispute Resolution Scheme rules affect you' 14 August

MAS Annual General Meeting 2024 is on 21 August

Asteron Life offers four $5,000 grants to advisers who attended MDRT annual meeting

ANZ has announced that Nagaja Sanatkumar will join its board

ANZIIF has released an IT outage preparedness video

Gallagher Insurance support the Poipoia te Kākano Programme

Westpac announce their first third party Open Banking integration is live

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nib looks to improve services to Māori

nib is looking to improve services to Māori communities by learning from indigenous health providers in other countries.

nib is looking to improve services to Māori communities by learning from indigenous health providers in other countries. Leadership from nib and Iwi partners involved in the Toi Ora project have recently returned from a study tour to Canada. Those involved met with Canada’s First Nations Health Authority, Pacific Blue Cross, First Nations Tax Commission (FNTC) and Squamish Nation to get insights into how these organisations deliver services to First Nations people in Canada and how these lessons could be applied in New Zealand.

Sarah McBride, nib NZ’s Head of Iwi Initiatives, said learnings included better ways to use existing funding, the importance of using health-related statistics and relevant previous cases to support new projects, and co-creation with local partners.

 

More daily news:

Overseas Investment Office expect to make decision on the sale of Asteron Life to Resolution Life by July

Potential CoFI change gives FMA power of onsite inspection without warning

Partners Life to launch new Underwriting Workbench

Michael Weston speaks about his plans for Partners Life

nib release their top five health claims for April

The FMA has highlighted the authorised body system as a potential problem area

Financial Advice NZ publish Budget 2024 Summary - Adviser to Client Resource

Entries open for Insurance Business’ 5-Star Insurance Innovators awards

MAS is looking for a Head of Private Wealth

Westpac confirms operational readiness to collaborate with approved third parties on delivering open banking solutions

Budget 2024 includes new health investments

Professor Lester Levy has been appointed as a member and Chair of the Board of Health New Zealand

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Asteron Life appoints new Chief Underwriter

Kathie Tutty has been named the new Chief Underwriter at Asteron Life.

Kathie Tutty has been named the new Chief Underwriter at Asteron Life. Tutty is currently the Underwriting Manager and Principal Underwriter at Asteron Life and will start her new role on May 31.

Grant Willis, Executive General Manager Life, said

“Kathie’s promotion to the role of chief underwriter and member of the life leadership team recognises her passion and ambition for our business and her desire to take our underwriting performance and strategy to the next level.”

 

More daily news:

Bronwyn Kirwan interviews Niall McConville, Fidelity Life's new Chief Insurance Officer

MAS Investment Schemes Administration Manager changes ownership and name to MUFG Pension & Market Services

MAS reaches $2.5b investment funds under management

Tom Pasley recommends that advisers looking to retire, sell, merge or close up shop get run-off insurance

The Monetary Policy Committee keep the Official Cash Rate at 5.50%

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Resolution Life’s purchase of Asteron Life will be different than when they purchased AMP Life

Grant Willis, Asteron Life executive general manager, says Resolution Life's proposal to acquire Asteron Life is very different to when it bought AMP Life.

Grant Willis, Asteron Life executive general manager, says Resolution Life's proposal to acquire Asteron Life is very different to when it bought AMP Life

Advisers had previously expressed frustration after Resolution Life’s acquisition of AMP Life, particularly around communications and service levels.

Willis says that this time it will be different as Resolution Life are supporting Asteron Life’s growth ambitions, keeping the current management team in place and keeping the branding the same. Willis says the purchase will allow Asteron Life to invest in things like digitising the business to drive growth.

In addition, Willis points to new leadership at Resolution Life Australasia, with Tim Tez taking on the CEO role less than 18 months ago.

 

More daily news:

TIN’s 2024 Fintech Report Launch is on 23 May in Auckland

Good Returns points out some issues with the Reserve Bank's solvency standards for insurers

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