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.
Craig Stobo appointed as chair of FMA
Craig Stobo has been appointed as the new chair of the Financial Markets Authority (FMA).
Craig Stobo has been appointed as the new chair of the Financial Markets Authority (FMA). Stobo has been appointed for a five-year term and takes over from Mark Todd, whose term expired at the end of April.
Commerce and Consumer Affairs Minister Andrew Bayly said
“Mr Stobo brings a significant depth of experience to the role, having worked as a director, diplomat, economist, and chief executive.
The FMA will benefit from Mr Stobo’s understanding of market issues and regulation, as well as the importance of informed participation from businesses and investors.”
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The FSC brings the industry together to respond to the Contracts of Insurance Bill
Anna Schubert discusses ways AIA help advisers manage stress
AIA launch a Neurodiversity Toolkit
Southern Cross Healthcare have joined the New Zealand Disability Employers' Network
MAS is a finalist in the Ethical and Impact Investment Awards
Submissions open for the ANZIIF industry awards
Kiwibank welcome Anne Haira to the Kiwibank board
Westpac won the Corporate ESG award at the INFINZ awards
ASB has joined the Hidden Disabilities Sunflower programme
People seeking help from financial mentors jumps 40% in a year
FSC report finds 70% of kiwis are worried about money
The Financial Services Council’s (FSC) latest Financial Resilience Index tracker has found New Zealanders to be increasingly under financial pressure.
The Financial Services Council’s (FSC) Financial Resilience Index tracker has found New Zealanders to be increasingly under financial pressure.
The Index tracker revealed 70% of New Zealander's are worrying about money daily, weekly or monthly, the highest level since 2020 which reached 60%.
Inflation and interest rates are concerning New Zealanders, at 89.6% and 75.6% respectively.
Confidence in job security has started to fall, down to 85% from a high of 89% in 2023.
More kiwis are reporting having personal debt than last year, up 6%.
More kiwis have one month or less of savings on hand to maintain their current lifestyle should they lose their job.
60% of non-homeowners have reported meeting living expenses is somewhat or very difficult.
48.5% were very or somewhat unconfident with the overall economy at the moment. 76.4% of respondents were somewhat or very concerned about house prices.
The survey took place in March 2024, with 2002 respondents. FSC members can download the full report in the FSC members area.
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Fidelity Life are running e-app training webinars
FAMNZ held launch party, another in Christchurch May 30
BNZ win Canstar 2024 Innovation Excellence Award for their Digital International Payments
Submissions call for rewrite of FMA’s draft guide about outcomes focused regulation
The Financial Markets Authority (FMA) has released the submissions relating to it’s draft ‘Fair outcomes for consumers and markets’ guide. Chapman Tripp and Dentons Kensington Swan submissions have been released and both critique the guide.
The Financial Markets Authority (FMA) has released the submissions relating to it’s draft ‘Fair outcomes for consumers and markets’ guide. Chapman Tripp and Dentons Kensington Swan submissions have been released and both critique the guide, with both law firms arguing that implementing outcomes-based proposals will impose confusing and expensive compliance duties of market participants – with no legal basis.
Criticisms include the guide being unclear on how outcomes focused regulation supports regulatory compliance; the draft guide being too vague to be readily applicable; the lack of tying high level outcomes back to actual legal requirements; and some of the draft guide lacks the authority of Parliament and risks being unenforceable or amendable to judicial review.
Suggested improvements include clarifying the scope and targeted market sector of each proposed outcome; providing detailed examples of how businesses can comply; adding more examples of expected compliance behaviour; and identifying when compliance with existing legislative requirement is sufficient to ensure delivery of fair outcomes.
More daily news:
MAS looking for a Senior Life and Disability Underwriter
AIA study finds stress is still one of the biggest issues affecting adviser wellbeing
Kelly Brough takes on new role as head of distribution and product development at Advice Link
Fidelity Life report digs into the role of financial advice in New Zealand
Fidelity Life’s ‘Advice for good: Rethinking New Zealand’s relationship with financial advice’ report highlights some worrying findings in New Zealander’s feelings towards their financial situation.
Fidelity Life’s ‘Advice for good: Rethinking New Zealand’s relationship with financial advice’ report highlights some worrying findings in New Zealander’s feelings towards their financial situation. The report found that:
28% of kiwis feel their financial situation is out of their control.
47% of kiwis often or always worry about money, and 53% of under-35s saying they always worry about money.
The majority of New Zealanders don’t feel confident making financial decisions until after age 55 – once this age is reached 63% feel confident in their money decisions.
Only 28% of women feel confident about their financial outlook, compared to 44% of men.
While 88% of kiwis agree financial advisers are the most trustworthy source of financial information, only 22% have consulted one – though 36% have sought help from family.
Many New Zealanders don’t know where to get trusted financial advice, with 41% of those under-35 unable to say where to find good advice.
There are different emotions towards money depending on ethnicity, with 30% of Māori and 38% of Middle Eastern, Latin American and African (MELAA) respondents said their financial situation made them feel overwhelmed. Meanwhile, 27% of Pacific Islanders were ashamed, and 58% viewed their financial situation negatively overall. 74% of Pacific Islanders, 59% of Asians and 56% of Māori respondents feel unconfident or unsure making financial decisions.
There was some good news about New Zealanders’ finances too.
88% of New Zealanders feel like they typically have enough to pay the bills.
34% feel financially comfortable, especially older New Zealanders – with 81% of those aged 65+ feeling positive about their financial situation.
Attitudes towards the future seem to be optimistic, with 41% feeling their financial situation will improve in the next 12 months, compared to 28% expecting things to worsen.
Kiwis are generally focusing on short-term horizons, with 89% of people prioritising day to day spending, 65% focusing on saving and 57% concentrating on paying off debt. Only 13% put growing their wealth and 4% put protecting their finances as their highest priority. 34% of those surveyed didn’t have any form of insurance and only 11% had consulted an insurance adviser.
This short-term focus is highlighted again with only 3% of those under 35 mentioning setting themselves up for a comfortable retirement as an aspiration, with home ownership being the number one goal in this age bracket. While retirement seems a long way away when young, only 23% of those in the 55+ age group mentioned a comfortable retirement as one of their aspirations, despite being less than a decade away from receiving the pension. 79% of those surveyed had KiwiSaver, 30% have stocks and shares and 17% have managed funds.
There seems to be a lack of understanding of the benefits financial advice can bring to people at all ages and stages of life. 31% of respondents said they don’t see the relevance of professional advice, and 10% listed being embarrassed or scared or consider their financial position to be private as a barrier to seeking advice. Only 5% of people stated they don’t know how to/who to talk to as a reason. Part of the lack of understanding on the benefits on advice might be due to a lack of familiarity on the role advisers perform, with only 13% being able to describe it with any confidence. Borrowing money was the most common catalyst for seeking out advice (48%) compared to 36% looking to invest to grow wealth. Just 28% have sought advice on products like income protection insurance or mortgage insurance. For those who consulted a professional financial adviser, 81% said getting financial advice provided peace of mind and 70% said it helped them achieve their goals.
Campbell Mitchell, Chief Executive of Fidelity Life said
“…the evidence shows most New Zealanders aren’t seeking financial help, either through regular financial health checks or at key life stages, until they’re nearing retirement – when it may be too late,”
“As a result of seeking amateur advice, we get stuck in the same old ways of doing things and can’t see a way forward – especially when the people we most often turn to for advice, our parents, have experienced different conditions. Baby Boomers who have achieved financial success via the traditional route of buying a home and an investment property may consider themselves financially savvy without taking into account the fact they’ve lived through one of the greatest property booms in our history, and that as the world changes, a different approach might work better today”.
The report was commissioned to explore attitudes towards financial advice and how to overcome the barriers to seeking professional guidance. The report surveyed more than 1,100 New Zealander’s aged 18 – 69, representative across age, gender, ethnicity and income level and consisted of a mix of quantitative and qualitative interviews.
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mySolutions webinar 9am 6 March 'Lessons and experiences from FMA monitoring visit'
Survey finds NZers want stricter penalties for companies suffering cyber breaches
Gail Costa talks about how the public need a better understanding of insurance
Gail Costa, chief executive of Chubb Life New Zealand, has spoken to Insurance Business Mag about how the public need to gain a better understanding of the industry during their schooling years to attract more people into the industry.
Gail Costa, chief executive of Chubb Life New Zealand, has spoken to Insurance Business Mag about how the public need to gain a better understanding of the industry during their schooling years to attract more people into the industry. Costa suggests that university courses should be offered around insurance. Costa said
“I’m sure that people don’t really understand insurance because we don’t teach it in school. We know from New Zealand being underinsured that there’s a financial literacy issue. Let’s talk about what the industry does and how it works.”
More daily news:
Toby Kelly named as the recipient of the 2023 ICNZ and ANZIIF Scholarship
The Westpac McDermott Miller Consumer Confidence Index rose 8.7 points in December to 88.9
The number of people hospitalised with Covid-19 and the average daily case count have jumped
Southern Cross hospitals are closed from Friday 22 December - Monday 15 January
FSC’s latest Money & You research finds a perception gap between financial confidence and financial literacy
The Financial Services Council (FSC) have released their latest Money & You research findings. The research found a ‘perception gap’, with 82% of people feeling financially confident yet only 62% of people showing a real understanding of the four financial concepts tested.
The Financial Services Council (FSC) have released their latest Money & You research findings.
The research found a ‘perception gap’, with 82% of people feeling financially confident yet only 62% of people showing a real understanding of the four financial concepts tested.
Worryingly, the research found that 56% of New Zealanders aged 18 or older aren’t financially prepared for retirement, with that figure shooting up to 69% of women not feeling prepared for retirement. We are really keen to see this broken down by age group in future as we would expect most young people to feel the least prepared, and some of the group just pre-retirement to feature more of the better prepared. The fact that the figure rises sharply for women is probably a good reflection of the larger retirement gap that women face due to longer lives combined with, often, a gender pay gap, and also often, career disruption due to having children, which tends to make preparing for that retirement more difficult.
Of those in KiwiSaver, 42% are only contributing the minimum 3%, and 64% of employers are contributing the minimum 3% – leaving a vast gap between projected KiwiSaver funds at retirement and what’s needed for a ‘no frills’ retirement. It is hoped that other preparations are being made - such as paying off a home and investing in other ways. In practice we know that with a very high cost housing fewer will have paid off homes and that will also reduce the scope for non-KiwiSaver savings and investments for many.
The current cost of living is impacting people’s insurance buying behaviour. When it came to life insurance, the report found that expense was the highest reason for not purchasing insurance (63%) and 57% of respondents said they would take out an insurance policy if they had more money. 55% of people who had previously had health insurance have said that the cost of living is so high they can no longer afford it.
More daily news:
MAS are recruiting for a Healthy Practice Adviser in Wellington
Tony Dench calls on the government to give considered and deliberate engagement with the sector
Bruce Patten says he's seeing more people cancelling insurances
Financial Advice New Zealand release ‘Value of Financial Planning Consumer Research 2023’ report
Financial Advice New Zealand’s latest study on the value of financial planning has been released. The study was undertaken in February 2023 and questioned 1,001 New Zealanders over 25 years old who earned over $90,000 per annum or held over $50,000 of investable assets on the value of working with a financial planner.
Some highlights from the report include:
· 68% of clients of financial planners are highly satisfied with their wealth versus 33% of unadvised consumers.
· 9 in 10 of those who have seen a certified financial planner feel financially secure.
· 9 in 10 clients of certified financial planner say the benefits of financial planning outweigh the costs.
· Those who haven’t engaged with a financial planner report unmet financial needs, with 2 in 5 worried about enough money to live on, 1 in 3 worried about the ability to live their desired lifestyle and 1 in 3 not having a realistic plan for a comfortable retirement.
· 99% of those who have engaged a certified financial planner trust they are acting in the client’s best interest
· 100% of those who have engaged a certified financial planner are likely to continue the relationship with their financial planner.
· Clients reported the top benefits of working with a financial planner as better financial decision-making confidence; having simplify and explain financial matters; improved financial wellbeing and peace of mind; improved confidence in ability to achieve desired standard of living.
The report also has some interesting information on the different ways different generations like to engage with financial planners.
More daily news:
AIA special offer could save clients up to 31% in premiums
Partners Life is switching to email communication for customers who want it
Katrina Shanks writes of findings on the value of financial planning services
Katrina Shanks is confident she's leaving Financial Advice NZ with a good framework in place
mySolutions are holding roadshows across the country in November
Official Cash Rate remains at 5.50%
FSC calls for a comprehensive review of KiwiSaver
Nominations for Insurance Business’s annual Elite Women are open
Malcolm Mulholland laments the lack of funded medicines in NZ
Sleep regularity is important for longevity
FSC release Money & You: Young People and the Cost of Living report
The Financial Services Council (FSC) have released ‘Money & You: Young People and the Cost of Living’ report. The report found that Gen Z and millennials had lower levels of financial wellbeing, financial literacy and financial confidence than older respondents. Some of the key findings from the report include:
Mental health and wellbeing is the number one health concern for both Gen Z (78%) and millennials (52%), with nutrition coming in second place and oral/dental health coming in third place.
61% of Gen Z and 52% of millennials worry about money daily or weekly, compared to only 29% of baby boomers.
Buy now, pay later (BNPL) and personal loans are more likely to cause Gen Z and millennials issues than other age ranges.
Only 42% of Gen Z and 51% of millennials would be able to access $5,000 in a time of emergency without going into debt.
41% of Gen Z and 58% of millennials feel very or somewhat confident about planning for their retirement despite 74% of Gen Z and 61% of millennials not having calculated how much money they need in retirement. 45% are contributing the minimum 3% to their KiwiSaver.
52% of Gen Z and 72% of millennials feel very or somewhat confident about choosing an insurance policy. 28% have life insurance, 13% have income protection insurance, 31% have health insurance, 7% have total and permanent disablement insurance and 11% have trauma or critical illness insurance.
More daily news:
Tim Grafton has announced his intention to step down from his position of chief of ICNZ next year
ANZIIF has announced the list of finalists for the New Zealand Insurance Industry Awards.
This week is World Investor Week and NZ's theme is ethical investing
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