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.
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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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
Fidelity Life extend 3 months free until 31 December 2024
Fidelity Life has extended their 3 months premium free offer until 31 December.
Fidelity Life has extended their 3 months premium free offer until 31 December. All new customers who take out an eligible policy will have their premiums covered for the first 3 months.
The offer is available to eligible new Platinum Plus, Platinum Plus Level Term, Mortgage Protectors and NZHL Life policies that are illustrated between 1-May and 31-December 2024, submitted within 30 days of the illustration being generated and issued within 6 months of the offer period end date.
More news:
mySolutions webinar 'Introduction to Milford Asset Management' 21 August
The IFSO Scheme investigated 479 complaints in the past year
Financial Advice NZ 'Professional Ethics Workshop' is on 22 August
Financial Advice NZ's 'Strategies Summit 2024' is on 21-22 August
FinTech webinar 'Exploring the Australian fintech landscape' 19 August
KiwiSaver assets rose $3.5 billion to $110.8b at the end of the June quarter
Huge increase in the amount of chemotherapy being provided by the private sector in recent years
John MacDonald suggests compulsory health insurance is the answer to Health NZ’s overspend woes
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
Legal and regulatory update for the life and health insurance sector
Commerce Commission’s preliminary view on Payments NZ developing framework relating to provision of API; ASIC issue Cost recovery Implementation Statement; XRB publish interim report on Climate-Related Disclosure Framework evaluation; maximum compensation for complaints to rise; APA & ASIC publish info to help insurers prepare for the start of the Financial Accountability Regime; Privacy Commissioner publishes Statement of Performance Expectations and launches free online toolkit.
1 Jul 2024 - The Commerce Commission has reached a preliminary view that it should grant conditional authorisation to Payments NZ Limited to work with current and future API providers (i.e., banks) and third parties (e.g., fintechs) to develop and apply a partnering framework relating to the provision of API services by API providers to third parties. https://comcom.govt.nz/news-and-media/media-releases/2024/commerce-commission-issues-draft-determination-on-payments-new-zealands-application-to-further-develop-its-open-banking-framework
8 Jul 2024 - ASIC issued its 2023-24 Cost Recovery Implementation Statement (CRIS). The CRIS outlines estimated regulatory costs and levies for each industry subsector to help entities plan and budget for levies and fees to be charged. https://asic.gov.au/about-asic/news-centre/news-items/asic-releases-estimated-industry-funding-levies-for-2023-24/
11 Jul 2024 - The External Reporting Board publish an interim report on New Zealand Climate-Related Disclosure Framework evaluation. https://www.xrb.govt.nz/news/insights/aotearoa-new-zealand-climate-related-disclosure-framework-evaluation-interim-report-published/
11 Jul 2024 - Financial limits for complaints are being raised across the four approved financial dispute resolution schemes from 18 July 2024. The Banking Ombudsman Scheme, the Insurance & Financial Services Ombudsman Scheme, Financial Services Complaints – a Financial Ombudsman Service, and the Financial Dispute Resolution Service will have the same thresholds for complaint values and compensation, providing consistency for consumers across the sector. The key change is raising the maximum compensation to $500,000 +GST. https://fdrs.org.nz/resources/news/increased-compensation-limits-for-financial-disputes/
11 Jul 2024 - The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have published new information to help insurers and superannuation trustees prepare for the commencement of the Financial Accountability Regime (FAR). The FAR already applies to the banking industry and takes effect for the insurance and superannuation industries from 15 March 2025.
New information includes:
an amendment to the Regulator rules, which prescribes key functions information for inclusion in the FAR register of accountable persons for insurance and superannuation industries; see Financial Accountability Regime Regulator Rules Amendment Instrument No. 1 of 2024 and Financial Accountability Regime Act (Information for register) Regulator Rules 2024; and
a joint ASIC and APRA letter summarising key issues raised during consultation and their response, including the concept and application of key functions.
12 Jul 2024 - The office of the Privacy Commissioner has published their Statement of Performance Expectations 2024-2025. https://privacy.org.nz/publications/corporate-reports/statement-of-performance-expectations-2024-2025/
15 Jul 2024 - The Office of the Privacy Commissioner has launched a free online toolkit today to help businesses and organisations do privacy well. https://privacy.org.nz/publications/statements-media-releases/new-privacy-toolkit-set-to-support-business-and-organisations/
Next week is Privacy Week
Privacy Week 2024 runs from May 13 – 17. This year, the office of the Privacy Commissioner have chosen the theme ‘busting privacy myths’. There are a range of online events you can attend, and they will all be recorded and added to their YouTube channel.
Privacy Week 2024 runs from May 13 – 17. This year, the office of the Privacy Commissioner have chosen the theme ‘busting privacy myths’. There are a range of online events you can attend, and they will all be recorded and added to their YouTube channel.
Monday 13 May
11:00am - Myth: Māori data sovereignty is too hard – introductory
1.00pm - A hacker's view of data breaches – introductory
Tuesday 14 May
8.30am - In-person IAPP Knowledge Net event – Wellington
10.30am - Busting myths about privacy and cyber security – introductory
12.00pm - Biometrics and you – intermediate
3:30pm - Sharing personal information: Why aren’t we sharing when we have authority to do so? – Intermediate.
Wednesday 15 May
9.30am - If I'm not doing anything wrong, what do I have to hide? – Introductory
10.45am - Safeguarding children and young people's privacy in New Zealand – Introductory
12pm - Resolving Privacy Complaints: Internal Resolution and Working with OPC – Introductory
2pm - What’s missing from the conversation on AI? – Intermediate
Thursday 16 May
9.15am - Privacy for Charities and Not-for-Profits: tips and tricks - introductory
10.30am - All privacy breaches need to be reported to the Privacy Commissioner? – intermediate
1.15pm - Managing Privacy in the Data & Generative AI Era – Intermediate
2.30pm - Young people don't care about Privacy - Debunking the myth – Introductory
Friday 17 May
9.00am - Sharenting, Children and Privacy – The fine line between 'cute' and 'concerning'
10.30am - Privacy is More than Compliance: Transforming Privacy into a Strategic Business Advantage - Advanced
12.00pm - Data Privacy: Protecting Children in the Digital Age – Introductory
2.00pm - My DNA will only be used in this way - busting privacy myths about DNA - Introductory
There is a range of collateral available for you to put on your website or social media or pop up around the office here and a quiz you can take with your team available here.
More daily news:
nib offers respondents to Workplace Wellbeing Survey a chance to win
ICNZ has welcomed the first reading of the Contracts of Insurance Bill
The government calls for public submissions on the Contracts of Insurance Bill
Wotton + Kearney release 2023 NZ Insurance Market Trends Update
Wotton + Kearney have released their 2023 NZ Insurance Market Trends Update. Of note, it includes updates on:
· increase in director accountability for ESG issues and climate-related financial disclosures;
· how organisations will need to consider how applicable tikanga values should inform their conduct when dealing with employment relationship issues;
· how organisations need rigorous processes in place for restructures and redundancies;
· extensions to Schedule 2 Occupational Diseases;
· changes to the regulation of medicines, medical devices and natural health products;
· the passing of the Therapeutic Products Bill 2023;
· cyber, privacy and data security.
More daily news:
Cost of living crisis is changing conversations advisers are having with clients
Katrina Shanks writes of the importance of quality financial advice
mySolutions webinar 'Are you maximising your marketing potential' 9am 27 September
27% of 4,120 claims received by IFSO were related to health, life and disability insurance
Lifetime webinar 'Your Homeownership Adventure Begins Here' 7pm 27 September
Man trying to claim pregnancy care on his health insurance policy has complaint turned down by IFSO
Alzheimer’s Society recommends regular exercise to cut dementia risk
The role of FAPs in building consumer confidence in the professional advice sector
On Wednesday I had the pleasure of listening to industry professionals discussing ‘The role of FAPs in building consumer confidence in the professional advice sector’, a lunchtime event sponsored by Chatswood Consulting, at the Financial Services Council's Building Consumer Confidence Conference.
Chatswood Consulting would like to extend our thanks to the speakers on the panel for their time and sharing their insights with us:
• Michael Hewes - Director of Deposit taking, Insurance & Advice, FMA
• Susan Taylor - CEO, FSCL
• Hannah McQueen - Author & Founding Director, AdviceFirst / Enable.me
• Ryan Edwards - Managing Director, The Adviser Platform
• Trecia Brown - Head of Customer Outcomes, New Zealand Financial Services Group
Michael spoke about how we have 1407 licenced FAP’s, and how the FMA has around 40 new licences on the go at any time. He mentioned that as advisers you might be helping vulnerable people and to try and make communications as easily understandable as possible, everything from making sure the font size is large enough to be easily read to using simple language.
Trecia spoke about how we need to use systems and processes to keep customer data safe, keep our language positive, build a risk aware culture and how we can manage complaints and use them to improve service. Trecia also spoke about the need to work together as an industry to promote the value of advice.
Ryan spoke about a shift in language from compliance to governance. This helps to change our view from one of merely achieving a base level of compliance to a wider vision of compliance assurance, and leadership by using customer focused principles to guide development of a culture – more like ‘how we do things here’ rather than meeting an externally imposed requirement.
Susan spoke about how we should be talking with customers about our complaints processes and how we have an independent, external complaints process before there’s ever a cause for complaint, so we can build confidence that should anything go wrong customers know what to do about it and are confident it will be handled fairly and well. Susan recommends that advisers put themselves in the shoes of the reader of their communications – would they understand it? Will it have jargon in it they may not understand? Susan mentioned the possibility of using alternative communication forms, such as videos, to help get your message across clearly.
Hannah spoke about how when you have a product you’re proud of you have to be able to articulate it to customers in a way they can understand. It was interesting to hear her expand by talking about ways to track how well the client is on track: are they achieving what they set out to achieve in the plan? Keeping these in view, checking in, and seeing how to course correct to achieve them is a good guide to ensuring they stay customer focused.
More daily news:
Official Cash Rate remains unchanged at 5.5%
All Covid-19 requirements, including 7-days mandatory isolation, removed
The FSC has released details of the Conference 2023 panels and sessions
The Financial Services Council (FSC) has released details of some of the key events of interest to those in the life insurance and health insurance sectors at the Building Consumer Confidence Conference 2023.
Of interest to the Health Insurance sector:
15 August – Member only session - The great Genetics Debate – creating a win-win for customers
16 August - Breakout session - The future of the Health System in NZ: Public and Private innovating together?
16 August - Breakout session - Equity and Fairness in the Health System
Of interest to the Life Insurance sector:
15 August – Member only session - The great Genetics Debate – creating a win-win for customers
16 August - Breakout session - Be Confident, Be Courageous: what insurance do customers really need?
16 August - Breakout session - Is there a Golden Egg? Balancing of technology, legislation and innovation
More daily news:
FSC release the Climate Scenario Narratives for the Financial Services Sector
Lawyer sues Asteron Life in the Court of Appeal for alleged life insurance contract breach
Southern Cross awarded top 10 in the Kantar Corporate Reputation Index
ACC's latest Innovation Fund for recovery at work projects is now open
New ruling from IRD regarding GST and Directors' and board members' fees
AIA NZ has been awarded the Accessibility Tick
The Co-operative Bank announce full-year profit before tax of $18.8m for the period ending March 31
Tomorrow, Today, Event Series: The AI Revolution – Sustainability event on Jun 27
Stats NZ confirms NZ dipped into recession
Data for Australia shows overall life insurance inflows saw a modest increase of 2.5%
Government to increase the number of funded medical students from 2024
Good Returns has six marketing tips for mortgage advisers
Government announces a five-year focus on tackling rheumatic fever and rheumatic heart disease
Official Cash Rate now 5.5%
The Reserve Bank of New Zealand’s (RBNZ) Monetary Policy Committee has voted to raise the Official Cash Rate (OCR) from 5.25% to 5.5%.
The RBNZ has indicated that the OCR will need to stay at a restrictive level “for the foreseeable future” to get inflation back down to the RBNZ’s 1% - 3% annual target range.
The RBNZ has acknowledged that demand in the economy is slowing, with businesses reporting less demand for their goods and services, and homeowners feeling less wealthy due to falling house prices. However, low unemployment, the uncertain impact of high immigration on overall spending, rapid recovery in overseas visitor numbers and the repair and rebuild of parts of the North Island due to recent severe weather events all support economic growth.
The RBNZ is still forecasting 5.5% as the peak for the OCR, with cuts anticipated from the third quarter of 2024.
More daily news:
Katrina Shanks explains what regulatory returns are for and the FMA's expectations
ASB Business Sustainability Loans aimed at supporting positive social and environmental change
Massey University launch Complaint Response and Management course
AIA NZ Legal team named NZ In-House Team of the Year at the 2023 Australasian Law Awards
Minister of Health announces 8% pay boosts for GP & community nurses
Government launches new mental health tool for small business owner-operators
Proportion of households behind on their mortgage repayments in March up 26% on last year