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.
Hays publish salary guide
Hays have published their Salary Guide for FY24/25.
Hays have published their Salary Guide for FY24/25. Of note, the extreme skills shortage is lessening yet there is a hesitancy for businesses to take on new hires, due to macro-economic conditions.
Their survey data highlights the importance of brand reputation; diversity, equity and inclusion policies; and environmental, social and governance strategies in attracting talent. Once an employee starts, team culture and job security are the biggest reasons an employee plans to stay with their employer. A huge 82% of employees said that team culture is the most important factor in their decision to stay with their current employer, and 64% said that continued remote or hybrid working was important. More than 77% of employees are currently looking or planning to look for a new job within the next 12 months, with the rising cost of living being the most cited reason (64%).
Currently, 97% of organisations offered a hybrid working model, with 74% not expecting their hybrid work offering to change in the year ahead. This tracks closely with employee wants, with 92% preferring a hybrid mode of working.
86% of organisations are planning on offering pay rises in the year ahead, though the value of the salary increases is dropping, at odds with employee expectations, with 61% of employees expecting an increase of more than 3%. 71% of employees stated that a pay rise was the most important factor to their career in the year ahead but benefits also featured highly in priorities – with learning and developing technical skills (63%) and being able to work flexibly (54%) being important to people.
The survey had 15,324 respondents across Australia and New Zealand, across both employers (6,461) and employees (8,863).
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Westpac offer financial support to customers affected by the extreme weather events
TAP looking for a Group Senior BAS Accountant
Select committee against bill to limit use of KiwiSaver as part of pay package
Legal and regulatory update for the life and health insurance sector
2 Apr 2024 - The Reserve Bank has announced two new members of its Monetary Policy Committee (MPC). Carl Hansen and Prasanna Gai are set to join the set-member MPC responsible for the crucial monetary policy decisions that uphold price stability in New Zealand. Hansen began his tenure April 1, succeeding Peter Harris. Gai will start on July 1, taking over from Caroline Saunders. https://www.beehive.govt.nz/release/reserve-bank-appointments
2 Apr 2024 - The Reserve Bank of New Zealand has welcomed progress on whenua Māori lending. The Māori Land Court recently released a practice note in regard to lending on Māori freehold land - whenua Māori. The note provides guidance to assist landowners, lawyers and the banking sector with lending against Māori freehold land. https://www.rbnz.govt.nz/hub/news/2024/04/rbnz-welcomes-progress-on-whenua-maori-lending
2 Apr 2024 - The Financial Markets Authority is considering a class exemption that would allow listed companies to bring certain green, social, sustainable, and sustainability-linked (GSSS) bonds to market more quickly and without incurring most of the regulatory costs of a full retail investment offer. This would operate on a similar basis to the same class exclusion available in the Financial Markets Conduct Act 2013 (FMC Act), that allows companies that are already-listed to raise further capital using simple, streamlined disclosure. Submissions close 30 April 2024. https://www.fma.govt.nz/business/focus-areas/consultation/consultation-proposed-exemption-for-certain-green-social-sustainability-and-sustainability-linked-bonds/
2 Apr 2024 - Changes to ACC’s Accredited Employers Programme (AEP) aim to deliver a better experience for businesses and workers whose work injury claims are handled by the organisation directly, rather than through ACC. Accredited employers will be given better insights into their performance, more support and guidance to help them improve their worker’s experience as well as injured workers being better supported by their employers.
The changes focus on 4 areas:
Claims and injury management assessment: An improved assessment of the claims and injury management that also better captures workers’ experience and remove unnecessary compliance.
Performance monitoring: A new performance monitoring model that will give accredited employers access to clear and up-to-date information on their performance, the ability to lift performance, and incentives to perform better.
New health and safety assessments: An updated ACC health and safety audit process and a new option of ISO 45001 certification will drive higher quality health and safety systems.
Updated pricing options: More choices under the Partnership Discount Plan, enabling employers to take on longer claims management periods, providing workers with complex injuries greater assurance and more continuity of support.
The changes will take effect from 1 April 2025, with 1 years notice, so accredited employers and ACC have time to prepare and adapt their processes and systems.
https://www.mbie.govt.nz/about/news/final-changes-to-accs-accredited-employers-programme-confirmed/
2 Apr 2024 - The Reserve Bank of New Zealand publish an op-ed by Reserve Bank Governor Adrian Orr. https://www.rbnz.govt.nz/hub/news/2024/04/rbnz-op-ed-on-cofr
AXA report sheds light on concerning state of mental health and wellbeing at work globally
Axa’s latest Mind Health Report has found nearly a third of people worldwide suffer from a mental health condition.
AXA’s latest Mind Health Report has found nearly a third of people worldwide suffer from a mental health condition.
The research was a collaborative effort between AXA and IPSOS, and surveyed 16,000 people across 16 countries in Europe, Asia and America, with a focus on mental health and wellbeing in the workforce.
The report found three in four employees were grappling with mental health issues attributable to their work environment, with respondents mentioning either tiredness, trouble sleeping or stress. Overall, 23% of employees had taken mental health-related sick leave, jumping to 38% of younger people. The Southern Cross Workplace Wellness Report uncovered similarly concerning findings around increased stress being experienced by workers.
Mental health support offered by employers is a key factor in employees choosing to stay with a company, with 62% of those aged 18 to 44 factoring it into their decision. More than half of respondents said company-driven mental health initiatives and benefits influence their engagement at work.
More daily news:
Are kiwis taking more sickies?
The 2023 Workplace Wellness Report, a collaboration between Southern Cross Health Society and BusinessNZ, found a rising trend in staff using more of their sick leave entitlements.
The 2023 Workplace Wellness Report, a collaboration between Southern Cross Health Society and BusinessNZ, found a rising trend in staff using more of their sick leave entitlements.
The survey canvassed 137 organisations in the public and private sectors, who together employ a total of 135,742 people, 6.57% of all employees in New Zealand, about their employee absence data across 2022.
In July 2021 the statutory sick leave entitlement increased from five to ten days annually. Across 2022 employees took an average of 5.5 days off. This increased from the 4.2 to 4.7 days recorded between 2012 and 2020. It should be noted that 2020’s average of 4.2 days was the lowest, when lockdowns, social distancing and a nationwide focus on staying home when sick had a significant impact on results.
Extrapolating figures from the survey to the national workforce, it translates to 10 million working days lost due to employee absence in 2022, up significantly from 2021’s 7.3 million estimate. Across the economy this equates to around $2.86 billion in absence costs.
The report cited the ongoing influence of Covid-19 and the encouragement to stay home when ill as one of the factors influencing 2022’s increased absence results. They found 2022’s mean result for the degree staff typically turned up for work with some form of illness when they should have stayed home was less than in 2018, 2016, 2014, and 2012 and an exact match for 2020. This bodes well that employees are putting more emphasis on taking care of themselves and limiting the spread of illness. The report also found that the proportion of enterprises who thought the culture of their business encouraged employees to stay home when ill has improved markedly since Covid-19 arrived, throughout all sizes of businesses.
However, they also note that ‘paid sickness absence days being viewed as an entitlement by those suspected to be not actually sick’ as risen up the ranking of main drivers of absence to reach number 7.
Anecdotally, people have been experiencing more sickness since lockdowns ceased than in years previous. Could this be part to blame for the increase in absences? Or is it simply that one of the lingering effects of living through a pandemic is a reluctance to come in to work when sick, when in the past employees would have just soldiered on?
Changing business demographics opens up opportunities for advisers
Stats NZ’s latest business demography statistics (as at February 2023) paints a promising picture of New Zealand’s economic landscape. With more new businesses and a rise in employment, opportunities abound for insurance advisers specialising in Business Risk Protection products.
Stats NZ’s latest business demography statistics (as at February 2023) paints a promising picture of New Zealand’s economic landscape. With more new businesses and a rise in employment, opportunities abound for insurance advisers specialising in Business Risk Protection products.
Key highlights include:
· The number of enterprises in NZ is following an upward trajectory, with 605,000 enterprises in February 2023, up 1.8% from February 2022. This is on top of a 5.3% increase in the year to February 2022.
· The number of paid employees in these enterprises (not an official employment statistic) was 2.5 million, up 3% from February 2022.
· These enterprises operated across 641,560 business locations, up 1.4% from February 2022.
There has been a marked increase in new businesses across a range of sectors, indicating a healthy and growing economy. The data also reveals a positive trend in employment, with employees in large enterprises up 5.9% from February 2022.
Ministry of Business Innovation and Employment figures show 196,584 people entered NZ on work visas in the 12 months to September, up dramatically from 39,501 in the 12 months to September 2022. The arrival of these overseas workers further increases the pool of workers available and makes it much easier for employers to fill any vacancies.
Certain industries, such as construction; professional, scientific and technical services; and health care and social assistance industries, have shown significant growth. These sectors often have specialised insurance requirements, like protecting shareholder needs or covering key people within an organisation, providing a niche market for advisers.
Quality Product Research Ltd have recently completed independent research on Business Insurance lump-sum products, putting a wealth of information at advisers’ fingertips in order to make well-informed recommendations. With disability products soon to be included, advisers can offer a comprehensive suite of options to their clients.
Advicemonster has functionality that allows users to streamline the process of creating Business Statements of Advice (SOAs), speeding up the time spent on admin and freeing up more time to spend with clients. Please get in touch if you’d like a sample copy of a Business SOA. Advicemonster’s tools assist advisers in conducting a Fact Find and Needs Analysis and being able to offer highly personalised solutions.
The combination of up-to-date research and specialised tools allows advisers to educate new businesses on effective risk mitigation strategies. This is particularly crucial for sole traders and SMEs that may not yet be aware of the full range of risks they face.
To find out more about what Advicemonster can do for you, please contact Aneel Ravji on 0212160905 or ask us about our next online training sessions.
nib release 2023 sustainability, community and climate-related disclosure reports
nib Group have released their 2023 sustainability, community and climate-related disclosure reports. Some highlights from the reports include:
· 25,990 HealthChecks were undertaken by nib members.
· Employee Experience Surveys in FY23 found an overall engagement score of 81%.
· 289 staff volunteered 1,546 hours across 14 charities.
· 34 suppliers completed continuous improvement plans to manage modern slavery risk.
· The strategic procurement team has taken a proactive step toward reducing nib’s carbon footprint by introducing environmental criteria into the Request for Proposal (RFP) process.
· nib introduced a new values-based employee recognition program where all employees have the opportunity to nominate their colleagues and vote on the most extraordinary achievements.
· nib worked with Ngāti Whātua Ōrākei to facilitate the ‘Cultural Coalition’ Program (Whatua te Aho Tukurua). This six-week program teaches participants Māori language and values, encouraging employees to integrate these learnings into regular work activities and practices.
· Gender pay equity gap has reduced to 2.75%.
· 985 Kiwis visited Clearhead’s Te Reo Māori website and chatbot
nib has identified climate-related risks including:
· increased market pressure to provide community support and insurance affordability for those experiencing climate hazards;
· increased illness & comorbidity due to chronic and compounding climate change hazard;
· trauma, illness, property destruction and disruption leading to high rates of psychological distress;
· increased incidents and severity of climate hazards causing pressure on discretionary income;
· chronic and compounding climate change impacts putting pressure on health services;
· energy and emissions performance standards creating compounding capital expenditure and operational costs;
· limitations of current regulatory and pricing mechanisms to respond to climate hazards;
· risk nib won’t meet growing mandatory reporting and regulatory requirements.
nib has developed a risk-management framework to manage and mitigate its material risks, and their board and management regularly identify and analyse risks and the effectiveness of the controls in place to manage these risks.
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FinTech NZ is asking members to fill in their 2024 New Zealand Fintech Pulsecheck Survey
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Open letter to Pharmac saying the chief executive and the chairman need to step down
PWC publish New Zealand Workforce Hopes & Fears Survey 2023
PWC have published their New Zealand Workforce Hopes and Fears Survey 2023, exploring views on business viability, worker sentiment, workforce skills, emerging technology, work environment and climate action. 1,000 respondents shared their views and in general, kiwis were more optimistic than others Asia Pacific countries, with 72% believing that their employer will still be in business in the next decade.
New Zealanders were consistent with the rest of Asia Pacific in terms of 57% of both areas being very or moderately satisfied with their jobs, however kiwis were less likely to ask for a pay rise (37% vs 43%), ask for a promotion (23% vs 38%) or change employer (20% vs 28%).
Only 25% of kiwis believed the skills for their job would change significantly in the next 5 years (versus 44% of those in the Asia Pacific region). In terms of technology, kiwis seem to think AI will be less disruptive and provide less opportunities than Asia Pacific respondents: 35% don’t think AI will impact their jobs, much higher than Asia Pacific as a whole at 16%; 22% believe AI will help them increase their productivity/efficiency at work (vs Asia Pacific 41%); only 18% think AI will create opportunities for them to learn valuable new skills (vs Asia Pacific 34%); only 12% believe AI will create new job opportunities for them (vs Asia Pacific 25%); and 44% think that digital skills are important to their career (vs. Asia Pacific 59%).
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Southern Cross are reviewing the way they communicate changes
Early bird tickets for FSC’s Trans Tasman Strategic Leaders Summit on 4 - 6 March 2024 available now
mySolutions webinar - Richard Sewak shares his adviser story, 4 October, 9am
NZIER Consensus Forecasts predict subdued economic growth over the next two years
ASB awarded Digital Banking, Bank of the Year by Canstar NZ
Study finds having a healthy lifestyle reduces risk of depression by 57 per cent
Fidelity Life announces expanded careers development programme and new digital, product, service and retention initiatives
Fidelity Life is expanding on its Career connect adviser training course to support financial advisers at different stages of their career. Adviser Edge is due to launch in April 2024 and consists of:
Career connect: For advisers new to the industry (0-1 years' experience), a comprehensive adviser skills and training programme, aimed at attracting and training the next generation of financial advisers to the industry. Fidelity Life have announced two new intakes with spots for up to 15 adviser-nominated candidates and 15 new to industry advisers.
Professional pathways: with places for 50 advisers with 1 – 7 years of experience, Professional pathways will offer customisable and targeted educational resources, training, mentoring and development opportunities.
Advice masters: 30 experienced business owners with 7+ years in the industry will receive a tailored programme, delivered either 1:1 or in small groups on specialist topics including mergers and acquisitions, capital structuring and funding, value optimisation, succession planning, purpose-driven strategy, governance and sustainability.
Expressions of interest for Professional pathways and Advice masters are open now and applications for Career Connect will open in February 2024, with all starting in April 2024.
Fidelity Life have also introduced a suite of initiatives following completion of a series of transformation projects.
Live chat - quick and easy access to New Business and Underwriting teams now live via Adviser Centre.
New-look E-App – a modern an intuitive user experience from March 2024.
Dedicated adviser service team - now available, a team committed to servicing all adviser needs.
Working together - a comprehensive guide covering everything you need to know to do business with Fidelity Life, coming soon.
Signatureless forms - the need for some signatures has been removed and acceptance of digital signatures has been extended.
Transparent turnaround times –turnaround times for new and existing business queries on Adviser hub will be published shortly.
Renewal reminders - copies of customers’ renewal letters for Tahi policies.
Keeping customers covered - automated SMS reminders and outbound calls to customers in arears.
Online masterclass – coming in November: the latest in lapse data and trends and how behavioural science can support customer conservation.
Monthly mortgage repayment - cover benefit percentages to increase from 110% to 115% of mortgage repayments and 40% to 45% of income, to better reflect the high cost of living.
Special events and Future insurability - new Special event triggers to be added as reasons for optional cover increases such as buying investment property, land, holiday home, co-signing a child’s mortgage or supporting a child with fulltime tertiary study. Some exclusions for Special events and Future insurability (i.e., for customers with loadings or special terms) will also be removed to enable customers' better access to these benefits.
Key person new to business and Key person for farmers - monthly cover limits will be increased from $4,000 to $6,500 for Key person new to business and from $5,000 to $9,000 for Key person for farmers covers to acknowledge increasing labour costs.
Repatriation benefit - available on all inforce and new on-sale retail life covers, the newly added benefit will be on top of the life cover sum insured and will be accessible to repatriate a body home from and to New Zealand.
Trauma stand-down period - the stand-down period will be adjusted to start on the date of application submission, not completion of underwriting, to acknowledge pressures within the healthcare system which can cause underwriting delays.
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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.
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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
Legal and regulatory update for the life and health insurance sector
30 Aug 2023 - Chapter Zero says New Zealand needs to have credible net zero sector transition pathways https://www.chapterzero.nz/news/a-clear-path-to-decarbonisation-investment/
31 Aug 2023 - First reading of the Employment Relations (Protection for Kiwisaver Members) Amendment Bill completed in parliament, referred to the Finance and Expenditure Select Committee, with report back by 29 Feb 2024 https://bills.parliament.nz/v/6/bc7acd0f-efd4-4d6b-c045-08db67c4d76d?Tab=history
31 Aug 2023 - The Digital Services Tax Bill was introduced to parliament. This bill would allow the Government to implement a digital services tax https://bills.parliament.nz/v/6/7e81f14d-0dbd-42b7-2088-08dba9b9dfac?Tab=history