AI becoming more trusted by executives

SAP investigated how US executives were using AI in their organisations and their trust in the technology. They found that AI has become embedded in work practices (with 63% of executives using generative AI daily) and is changing how people do business.

Decisions are being made based on AI insights, with 44% of C-suite executives saying they would override a decision they had already planned to make based on AI insights and another 38% trusting AI to make business decisions on their behalf. 74% of executives had more confidence in AI advice over advice from family and friends. And a massive 55% of executives say in their company AI-driven insights have replaced or bypassed traditional decision-making.

Some common tasks carried out by generative AI tools include:

• Analysing data and making recommendations for decision-making (52%)

• Spotting risk or issues they hadn't previously considered (48%)

• Offering alternate plans (47%)

• Enhancing product development (40%)

• Supporting budget planning (40%)

• Performing market research (40%)

SAP found that there were positive implications on employee wellbeing, with 39% of executives reporting better work-life balance, 38% reporting improved wellbeing and 31% reporting reduced stress.

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Steve Wright on potential implications of government’s plan to use private health care facilities for public health treatments

Good Returns has an interesting article by Steve Wright considering some of the implications of what may happen if the government goes ahead with their reported plan to consider using private health care facilities to reduce elective surgery waiting lists. Aside from the obvious benefits of kiwis on public health waiting lists potentially getting treated quicker, Wright considers some potential downsides, from reduced pressure to improve public sector capacity, to the private sector becoming overwhelmed or people ditching their health insurance and the private sectors viability coming into question.

We think these risks are low, given the scale of the intervention proposed by Minister Brown – just $50m to be spent between March and the end of June. For context, ACC will purchase around $500m in surgery in the 2023/24 year, and the total New Zealand Health budget is circa $16.6 billion. For an individual who gets a needed surgery a little faster, we are delighted, but this intervention is unlikely to make a big impact.

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Nominations for the Financial Advice New Zealand Awards open

The Financial Advice New Zealand Awards 2025 will be held at the National Adviser conference on Thursday 3 April, at the Te Pae Christchurch Convention Centre. Nominations are open now, with submissions closing at 5pm on Friday 21 March.

• The Financial Capability Advocate Award: presented to an individual or organisation that has made a significant effort to promote financial capability and education. The recipient of this award has played a crucial role in providing financial education to help others understand financial concepts and make informed decisions about their finances.

• The Community Impact Award: recognition of an individual or organisation that has achieved excellent results in improving social and financial outcomes within a community.

• The Lifetime Achievement Award: a prestigious honour given to an individual who has made a significant contribution throughout their career or lifetime to the financial services sector. It recognises their outstanding achievements, leadership, and selfless dedication to creating a positive impact on the financial advice profession.

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Kym Maynard & Lindsey Reagan named as Insurance Business’ Elite Women 2025

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FSC release latest research report ‘Women and Finance in New Zealand’

The Financial Services Council (FSC) have released their ‘Insights and Trends: Women and finance in New Zealand’ 2025 report. With International Women’s Day being celebrated this month, the report aims to better understand how women and finances interact. Some of the key findings include:

• FSC research from December 2021 found that over 80% of female respondents considered their financial wellbeing as moderate to very low, with just under 64% of respondents reporting they worried about money at least monthly. By 2024, 70% of women were reporting worrying about money on a daily or weekly (in comparison, 51% of men reported worrying about money on a daily or weekly basis in 2024).

• Despite reported underconfidence, FSC research has found that women are more financially literate than men overall, with 66% of women answering at least 75% of financial trivia questions correct, compared to 57% of men.

• Women (61%) are more likely to be in debt than men (43%).

• Women are more likely to be working part-time, have full-time home duties or be unemployed (43%) than the equivalent for men (14%).

• 58% of women say they are not particularly financially prepared or not financially prepared at all for retirement.

Last Year, Te Ara Ahunga Ora Retirement Commission found that the retirement gap between men and women has not improved, remaining fixed at a 25% difference since 2023. FSC CEO Kirk Hope said

"The current KiwiSaver settings disadvantages those who take career breaks, disproportionately affecting women who pause their earnings to care for or start their families.

It’s encouraging to see the Government make steps to start to address this, with those receiving paid parental leave from July 2024 being able to choose to make KiwiSaver contributions, and Inland Revenue making employer contributions of 3%.”

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Munich Re delve into AI’s impact on Healthcare

As part of Munich Re’s Life Science Report, they have investigated the projected impact of Artificial Intelligence (AI) on healthcare, from disease prevention to diagnosis to treatment as well as the implications for efficiency gains.

While the news is mostly good (improved mortality, better prevention, earlier diagnoses, individualised therapies), it does create some challenges for life and health insurers. With earlier diagnoses and the emergence of new disease classifications, critical illness insurance products will need continuous updating. Claims management and policy development will become more complex, as genetic and molecular diagnosis becomes more routine, requiring a higher level of medical expertise. Overdiagnosis (the detection of diseases that don’t impact on mortality and/or morbidity) and antiselection may become problematic.

AI will also create opportunities for insurers. Insights from accessing and analysing vast datasets including electronic health records, imaging and other biomedical sources will transform the understanding of the root causes of disease and in turn allow underwriting to become more accurate and sophisticated. Wellness interventions will be able to be better targeted and increase in scope and effectiveness.

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Entries for Insurance Business’ annual Top Insurance Employers close 14 March

InvestNow’s Retirement Readiness Index recorded an average confidence level of 50.4%

Kiwibank reports NPAT of $92 million for the six months ending 31 December 2024

New framework moves beyond traditional reliance on BMI as a sole indicator of obesity

Chubb Life New Zealand appoints new Chief Executive Officer

Paula ter Brake has been appointed Chief Executive Officer of Chubb Life New Zealand, effective 5 May, subject to regulatory approvals. Paula has 30 years of experience and the retail banking and insurance industries and was most recently Executive General Manager, Consumer Brands for IAG New Zealand.

Paul Brock, Board Chair at Chubb Life, said

“Paula’s proven track record in driving growth along with transforming large businesses will bring real value to our customers, partners and our people. She is recognised for her dynamic leadership style and success in driving strategic initiatives and will play a key role as we continue the growth and success of our business.”

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Government announces healthcare boost

nib release launch date for Ultimate Life & Living

nib Ultimate Life & Living will launch on 28 March 2025. Details of the suite of products were released at nib’s nationwide adviser events last month, and advisers can complete their training and accreditation on the nib Learning Management System using their existing password.

Products available will include:

• Ultimate Life Insurance – cover to support a client’s loved ones if they die or are expected to die within the next 24 months;

• Ultimate Trauma Insurance – cover that extends beyond the initial diagnosis of a medical condition to support a client and their family’s well-being;            

• Ultimate Income and Mortgage Protection Insurance – pays a monthly amount if a client is unable to work because of illness or injury;

• Ultimate Total & Permanent Disability Insurance – focuses on the financial impact of lasting disability, so clients can rebuild their future with less financial strain;

• Ultimate Waiver of Premium – removes the burden of premium payments for a client if they’re disabled, ensuring their Ultimate Life & Living cover remains active.

 The full suite of products will be available for comparison on Quotemonster by the end of the month. You can find out about how Ultimate Life and Living works on Quotemonster at our forthcoming roadshows.

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GlobalData projects the life insurance market in New Zealand will grow

GlobalData, an international data and analytics company, has projected the New Zealand life insurance market to grow from $5.9 billion in 2024 to $8.3 billion in 2029, equating to a compound annual growth rate of 7.0%, in terms of gross written premium. It expects the New Zealand life insurance market will reach $6.4 billion in gross written premiums in 2025.

The largest driver of growth is expected to be life personal accident and health, with an expected compound annual growth rate of 6.9% between 2025 and 2029 driven by rising healthcare expenditure and corresponding premium increases.

GlobalData puts the increased demand down to factors including an aging population, heightened health awareness and the rising cost of living, which have increased the need for financial protection, though they caveat their projections, saying high unemployment and inflation could pose risks to this growth.

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Chubb Life NZ appoints new Head of Claims

Chubb Life NZ has announced that Reeta Anthony has been appointed as its new Head of Claims, effective immediately. Anthony will report to Debbie Eyre, Chief Operating Officer, and will be responsible for the strategic delivery of the claims proposition. Anthony has over 25 years of financial services experience and expertise and was most recently Head of Claims at Fidelity Life.

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Kate Jorgensen has been appointed to the Board of Southern Cross Medical Care Society.

ASB's NPAT for the six months to December 2024 was $763 million

Review finds KiwiSaver HomeStart scheme has coincided with an increase in house prices and a decline in homeownership

Pharmac announces decision to fund medicines for a further five health conditions

Report delves into implications for insurers from emerging medical trends

Munich Re’s latest Life Science Report delves into the emerging medical trends and risks and implications for life and health insurers. The report is split into five sections which analyses different topics: Artificial Intelligence in Healthcare (released); Improving Cancer Outcomes (released); Prevention (releasing 18 February); Obesity (releasing 4 March); and Climate Change (releasing 18 March).

Insurance Business Mag ran an article where Dr. Brad Heltemes, VP & medical director of R&D at Munich Re, discusses the Improving Cancer Outcomes chapter. In particular, Heltemes highlights how identification of various gene alterations the drive the development of a cancer can be significantly different between two cancers that appear to be alike in location and appearance, giving as one example “…the multiple different gene signatures seen with non-small cell lung cancers, each which responds to a different targeted treatment and each having a different prognosis.”

New diagnostic tests and innovative treatments are also leading to improving cancer outcomes, with many cancers that used to be terminal now being able to be managed as chronic diseases. With patients leading longer, healthier lives (which is great news!), longevity models and expected treatment costs need to be re-examined.

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The unemployment rate reached 5.1% in the December 2024 quarter

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KiwiSaver funds under management reached $121 billion in the December 2024 quarter