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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Fidelity Life announces growth plans

Campbell Mitchell, Fidelity Life Chief Executive, has told delegates at the Engage Conference the company’s intentions to grow to a $1 billion company.

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FMA announces more than $215 million returned to customers through remediation

The Financial Markets Authority (FMA) has released its annual report for the year ended 30 June 2024, including information on the money being returned to customers as a result of remediation activity stemming from the Conduct and Culture review.

The Financial Markets Authority (FMA) has released its annual report for the year ended 30 June 2024. One of the most interesting findings to come from the annual report was that $215 million has been returned, or is in the process of being returned, to customers as a result of remediation activity stemming from the Conduct and Culture review of banks and life insurers carried out by the Reserve Bank of New Zealand (RBNZ) and the FMA between 2018 and 2019. As at June 2024, 1.585 million affected customers had been identified. You can read about some of the filings from this year here.

The FMA achieved six out of nine of its Statement of Performance Expectations. Some key achievements included several penalty decisions for fair dealing provision breaches, opening licensing for the Conduct of Financial Institutions (CoFI) regime and producing the first Financial Advice Provider Monitoring Insights Report.

The FMA have also released the results of their Ease of Doing Business Survey which reports on stakeholder and industry participants views on the effectiveness of their interactions with the FMA.

  • 94% agree financial markets are effectively regulated

  • 85% agree the FMA supports market integrity

  • 84% agree that FMA communications is relevant to their sector

  • 75% agree the FMA helps raise the standards of market conduct

  • 80% agree that communications help them understand the FMA’s approach to regulation

  • 77% agree communications help them understand the FMA’s expectations of them

  • 53% agree it’s easy doing business with the FMA

 

More news:

The Banking Ombudsman Scheme has published results from its five-year review

Consumer confidence fell four points in October in the latest ANZ-Roy Morgan Consumer Confidence Survey

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This week is Cyber Smart Week

Running from 21 – 27 October, Cyber Smart Week is here! With the theme of ‘The Scamathon’, it highlights the importance of being more secure online.

Running from 21 – 27 October, Cyber Smart Week is here! With the theme of ‘The Scamathon’, it highlights the importance of being more secure online. Some key precautions you should be taking include:

  • Using long, strong and unique passwords

  • Using two-factor authentication (2FA)

  • Reporting any suspected scams to your management or IT teams

  • Turning on automatic updates

  • Stopping to think before you click – could it be a scam?

Own your online has produced a 5-part video series about business online security – you can watch them all here.

  • Episode 1 - How to protect your business: Learn why it’s important for your business to prioritise online security and how to start getting your business in better shape.

  • Episode 2 - How to protect your online accounts: Learn about the most important protections you can put in place for your online accounts.

  • Episode 3 - Protecting data and systems: Learn why it’s important to protect your data and your customers’ data and how to put these protections in place. Also learn how your business can best recover from an online attack.

  • Episode 4 - Protect your website and social media: Learn how to put the right protections in place for your website and social media accounts.

  • Episode 5 - How to spot phishing: Learn about the most common online attack – phishing – and how your business can avoid getting caught by it.

They are also running a series of online events around online security you can register to join.

·         Online security for individuals, 1pm, Monday 21 October 2024

·         Working together to improve cyber resilience across the health sector, 10:30am, Tuesday 22 October 2024

·         Online security for small businesses – simple steps for a big improvement, 3pm, Tuesday 22 October 2024

·         Supporting clients with cyber security - for mentors and advisors, 11am, Wednesday 23 October 2024

·         Financial sector cyber security threats and protections, 2pm, Wednesday 23 October 2024 

·         Online security for seniors, 1pm, Thursday 24 October 2024

·         Cyber security insights for tech professionals, 10:30am, Thursday 24 October 2024

 

More news:

David Whyte calls for financial advisers to be exempt from CoFi

Julian Fayad believes AI could handle up to 80% of advisor loan deals within seven years

New Zealand’s headline inflation rate fell to 2.2% in the September quarter

Clive Fernandes launches a new AI venture aiming to automate 80% of KiwiSaver client-servicing tasks

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What does a business version of the healthy futures report mean?

Southern Cross’s business edition of the 2024 Healthy Futures Report focuses on employee health and wellbeing.

We took a look at Southern Cross’s business edition of the 2024 Healthy Futures Report, which focuses on employee health and wellbeing. There are clear links between wealth and health, as the old saying has it. Whether one causes the other and in which direction the arrow of causality points is unexplored. We think it’s probably more complicated than this simple pairing of factors, although if someone becomes wealthy, they often become healthier. Likewise, if someone has the misfortune to become chronically ill, they usually get poorer. But these two are probably joined by other factors which may also have some power to affect outcomes – like education while young, health while a child, and current environment.

What employers can do to help is limited – but is appreciated by staff. At Quality Product Research Limited we offer seven of the eleven key suggestions made (soon to be expanded to eight) – we like that we can do that – but people use or do not use them pretty much as they please.

Key takeaways for us from the survey results:

  • 89% of respondents said it was important to them to work for a company that supports the health and wellbeing of their staff.

  • 55% of respondents’ employers were doing well in supporting their employees.

  • The top ten initiatives employers could invest in were wellbeing leave (36%), lunch or break room (29%), flu vaccinations (26%), healthy food options (25%), activities promoting good mental health (23%), workplace massage (23%), Employee Assistance Programme (22%), health assessments (21%), subsidised membership to off-site facilities (21%) and stress management programmes (20%).

  • 88% of employees think having a good work-life balance is important, with a third considering taking steps to improve their work-life balance.

  • Making use of flexible working hours (43%) and switching off from work when finished for the day (43%) were the most common means of managing work-life balance. Conversely, having a high work load (60%), financial pressures (40%) and not having flexible working hours (40%) were cited as most commonly as reasons for poor work-life balance.

  • 51% of workplaces offer flexible working arrangements, down from 54% in 2022; 60% of employees make use of flexible working hours most weeks and an additional 26% utilise it sometimes.

  • Only 45% of kiwis rate themselves as happy with their financial situation; 91% cite cost of living as one of their top concerns and 58% worry about not having enough money to support themselves or their families.

  • 84% of New Zealanders are concerned about not having good, affordable access to healthcare, up 8% from 2022.

  • Kiwis don’t feel they are getting enough sleep (60%) or exercise (62%).

  • New Zealanders without health insurance were more likely to be less happy with their health, financial situation, mental wellbeing, fitness levels, weight of themselves and their children, exercised less on average and were more likely to be stressed.

Southern Cross highlight a series of initiatives workplaces could take to improve employee wellbeing, including:

  • offering education on stress management and financial management;

  • offering free fruit or healthy food in breakrooms;

  • encouraging employees to make use of flexible working if it’s offered;

  • offering health assessments;

  • educating employees on the importance of flu vaccinations;

  • offer opportunities for physical exercise, through work place team sports, sports day or subsidies for gyms or exercise equipment;

  • encouraging employees to take their annual leave;

  • training leaders to identify those at risk of burn-out;

  • offering wellbeing leave;

  • providing employee assistance programmes and educating employees on what it is and hot to use it;

  • offering subsidised health insurance.

1,463 employees were surveyed for this report in March 2024.

 

More news:

Changes to Partners Life’s My Underwriting Manager platform

Jon-Paul Hale talks about CPI & income protection claims

Resonate 2024: Navigating Innovation event 7 November

Amanda Bridge has joined Apex Advice as Adviser Manager

NZ banks begin rollout of the confirmation of payments service from November 2024

Centrix’s latest ‘Credit Indicator Report' finds 461,000 people are behind on their payments

The Monetary Policy Committee cut the Official Cash Rate to 4.75%

BNZ has launched a new security feature aimed at combating online scams

October is International Breast Cancer Awareness Month

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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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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.

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Legal and regulatory update for the life and health insurance sector

RBNZ refresh financial stability indicators; RBNZ give development update on the Tara-ā-Umanga Business Expectations Survey; FDRS members' forum and AGM date released; new law strengthens ASIC's ability to respond to risks around financial market infrastructure; APRA release response to consultation.

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

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The FSC release their latest Money & You Report

The FSC have released their latest Money & You Report, ‘Consumer Resilience and the Road to Prosperity’. It paints a picture of New Zealander’s who have struggled with the cost-of-living crisis and are feeling financially pressured to the extent they have changed their spending habits, decreased their savings and have concerns about their ongoing ability to service debt.  

The FSC have released their latest Money & You Report, ‘Consumer Resilience and the Road to Prosperity’. In all it paints a picture of New Zealander’s who have struggled with the cost-of-living crisis and are feeling financially pressured to the extent they have changed their spending habits, decreased their savings and have concerns about their ongoing ability to service debt.  

Some key findings include:

  • 49% are somewhat or very unconfident in the overall economy (up from 45% in 2023), with women older generations and Europeans more likely to be unconfident in the economy. Those who are receiving financial advice are more positive about the impact of the economic climate.

  • 94% of respondents are concerned about financial issues, with the cost of living cited as respondents’ top financial concern (66% very concerned), followed by inflation (51% very concerned) and house prices (45% very concerned).

  • Financial pressures have resulted in a change in spending habits, with buying cheaper groceries (57%) and cutting back on takeaways (55%) and treat purchases (49%) the most common changes. Concerningly some New Zealanders have reported skipping meals (17%), limiting heating (24%) and avoiding medical treatment or skipping medication (16%).

  • 31% of New Zealanders were unhappy with their financial situation this year (up from 22% in 2023 and 25% in 2022).

  • There has been a drop in the number of retirees with more than 10 years of retirement savings, and an increase in those with less than one year of current retirement savings.

  • 82% hold investments, with KiwiSaver the most likely held investment type.

  • Troubling KiwiSaver trends include average member weekly contributions dropping 7.8% (comparing 2023 to 2021); hardship withdrawals are at an all-time high; the KiwiSaver gender gap continues to increase, now sitting at a $7,450 average balance difference between males and females. Most worryingly, the average KiwiSaver member who has been contributing all their working life may not have enough to support them during retirement, according to Massey University Retirement Expenditure Guidelines.

  • Those who have struggled to make recent debt payments have been more proactive, with 29% reaching out to their bank (up from 20% in 2023) or speaking to family or friends (38% up from 28%).

 Research was conducted via online survey, with 2,002 respondents completing the data during March 2024.

More news:

Chubb Life Chief Executive Gail Costa is to retire in April 2025

Anna Schubert talks through self-development tips for advisers

Tony Vidler suggests how advisers can create compelling offers

Financial Advice NZ webinar 'The role of emotion and chemistry in client decision-making' 18 September

Clive Fernandes writes of how AI can help personalise financial advice

‘Inspiring Success’ event takes place on 7 November in Auckland

mySolutions webinar 'SimpleWills and your estate' 11 September

Debate whether it is it time to boost KiwiSaver contributions at FSC pre-conference session

Value For Money report highlights top performing ethical KiwiSaver funds

Lloyd Burr writes about how hard it is to start a new bank in NZ

Inland Revenue is proposing to make fees charged for fund management exempt from GST

GPs warn primary care is close to collapse

Read More
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Survey highlights increasing concerns among kiwi workers about their mental and physical health

The 2024 Workplace Wellbeing survey has found that 80% of respondents have been negatively impacted by the current cost-of-living crisis.

The 2024 Workplace Wellbeing survey, conducted by nib New Zealand and the Employers and Manufacturers Association (EMA), has found that 80% of respondents have been negatively impacted by the current cost-of-living crisis.

  • 64% are concerned for the mental health and wellbeing of their family

  • 56% are worried about their own mental health and wellbeing

  • 52% are concerned about the risk of burnout at work

  • 50% said the rising cost of living has negatively impacted their mental health (rising to 63% of 16 – 30 year olds)

In more positive news, 61% said their workplace proactively manages wellbeing, up from 53% in 2022. Fewer employees are being impacted by understaffing (47% down from 64%), poor work-life balance (36%, down from 42%), and the pressure to work long hours (34%, down from 39%).

Kiwis are putting more value on systems that prioritise employee wellbeing, with 60% rating Employee Assistance Programmes (EAP) as important, and 72% valuing wellbeing initiatives and subsidies. The value of employer-provided insurance continues to grow, with 64% considering medical and health insurance a benefit they look for when switching jobs, up from 57% in 2022, 48% valuing income protection illness cover and 43% looking for life insurance benefits.

Rob Hennin, Chief Executive at nib New Zealand, said

“There’s no better time than now for employers to stand up and proactively support their teams’ mental and physical health, empowering them to perform at their best knowing there’s someone in their corner no matter what happens. Fostering this positive workplace culture starts from the top down, so it’s just as important for business leaders to embody these values in their day-to-day.”

The survey collected responses from 1,229 NZ workers this May.

 

More news:

Quotemonster offers advisers information on KiwiSaver products

Commissioner of Health NZ says reducing treatment delays is his main priority

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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.

More news:

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

Rob Hennin talks about nib's Toi Ora dedicated iwi programme

RBNZ reduces OCR by 25 basis points to 5.25%

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