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.
Legal and regulatory update for the life and health insurance sector
The Pae Ora (Healthy Futures) (Improving Mental Health Outcomes) Amendment Bill was read a second time; FMA join Global Financial Innovation Network; RBNZ publish analytical note around monetary policy decisions; FMA consult on regulatory returns for financial institution licensees; ASIC outline technological and operational resilience guidance; privacy concerns raised about IRD's use of taxpayers personal information.
11 Sep 2024 - The Pae Ora (Healthy Futures) (Improving Mental Health Outcomes) Amendment Bill was read a second time. https://bills.parliament.nz/v/6/955109f7-830e-4b94-2089-08dba9b9dfac?Tab=history
13 Sep 2024 - The Financial Markets Authority has officially joined the Global Financial Innovation Network (GFIN). GFIN is designed to facilitate cooperation between financial regulators worldwide, providing a platform to exchange experiences and strategies related to financial innovation. https://www.mpamag.com/nz/news/general/fma-joins-global-innovation-network/505407
16 Sep 2024 - The Reserve Bank of New Zealand has published an Analytical Note which shows monetary policy decisions that are not fully anticipated by financial markets lead to changes in interest rates and the New Zealand dollar exchange rate. https://www.rbnz.govt.nz/hub/news/2024/09/financial-market-reaction-to-monetary-policy-surprises
16 Sep 2024 - The Financial Markets Authority is consulting on regulatory returns for financial institution licensees. https://www.fma.govt.nz/business/focus-areas/consultation/consultation-regulatory-returns-for-financial-institution-licensees/
17 Sep 2024 - ASIC has released a letter to market participants outlining technological and operational resilience guidance, clarifying how to identify critical business services and notification of a major event. The guidance relates to the technological and operational resilience requirements detailed in Chapters 8A and 8B of the ASIC Market Integrity Rules (Securities Markets) 2017 and ASIC Market Integrity Rules (Futures Markets) 2017. https://asic.gov.au/about-asic/news-centre/news-items/asic-expands-operational-resilience-guidance-for-market-participants/?altTemplate=betanewsroom
17 Sep 2024 - The Office of the Privacy Commissioner has had privacy concerns raised from members of the public about IRD’s use of taxpayers’ personal information and hashing. OPC has contacted IRD for information so they can assess if this practice raises issues under the Privacy Act. https://privacy.org.nz/publications/statements-media-releases/care-is-needed-with-data-anonymisation/
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
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
Legal and regulatory update for the life and health insurance sector
ASIC expands strategic priorities; IRD seek feedback on long-term insights briefing; APRA release enhanced quarterly insurance statistics; the FSC publish the Aug 2024 Regulatory Forecast; Privacy Commissioner releases privacy week webinar recordings.
22 Aug 2024 - Australia’s public and private markets and emerging financial products will form a new pillar of ASIC’s expanded strategic priorities. https://asic.gov.au/about-asic/news-centre/find-a-media-release/2024-releases/24-184mr-asic-expands-strategic-priorities-for-coming-12-months/?altTemplate=betanewsroom
22 Aug 2024 - Inland Revenue is seeking feedback on the scope of its next long-term insights briefing.
Inland Revenue is proposing that its next long-term insights briefing explores what broad structure of the tax system would be suitable for the future, given long-term fiscal pressures and current tensions in our system. The briefing would approach this topic by focusing on two elements of the tax system: the regimes through which we tax income and consumption, and our mix of tax bases. The closing date for feedback is 4 October 2024. https://www.taxpolicy.ird.govt.nz/consultation/2024/2024-long-term-insights-briefing
22 Aug 2024 - The Australian Prudential Regulation Authority (APRA) has released its suite of quarterly industry aggregate insurance statistical publications with enhanced content and presentation. The first edition of the enhanced quarterly publications includes data for the September 2023, December 2023 and March 2024 reporting periods. https://www.apra.gov.au/news-and-publications/apra-releases-enhanced-quarterly-insurance-statistics
23 Aug 2024 - The Financial Services Council NZ publish the August 2024 edition of Regulatory Forecast, a member-only document https://members.fsc.org.nz/fsc-corporate-members/regulatory-forecast-august-2024
26 Aug 2024 - The Office of the Privacy Commissioner has released recordings of presentations shown during Privacy Week 2024. https://privacy.org.nz/news/forums-and-seminars/privacy-week/privacy-week-2024/
Legal and regulatory update for the life and health insurance sector
27 Nov 2023 - APRA embarked on a multi-year pilot study with a selection of banks to gain insights into the status of data risk management. They have outlined their findings and highlight multiple areas where all APRA-regulated entities can improve their data management practices. https://www.apra.gov.au/news-and-publications/quality-data-as-an-asset-for-boards-management-and-business
28 Nov 2023 - The Financial Markets Authority (FMA) has cancelled Foundation Advice Limited (FAL)’s Financial Advice Provider (FAP) licence. FAL was an Auckland-based FAP offering advice on life and health insurance as well as KiwiSaver. The High Court put FAL into liquidation on 26 October 2023 following an application filed by the Inland Revenue Department. https://www.fma.govt.nz/news/all-releases/media-releases/fma-cancels-foundation-advice-limiteds-licence/
28 Nov 2023 - ASIC has issued guidance to financial advisers and Australian financial services (AFS) licensees about the new requirement for financial advisers to be registered. From 1 February 2024, financial advisers who provide personal advice to retail clients on relevant financial products must be registered with ASIC. https://asic.gov.au/about-asic/news-centre/news-items/asic-releases-guidance-on-the-registration-of-financial-advisers/
28 Nov 2023 - The FMA has agreed in principle to grant a class exemption for five years for each Climate Reporting Entity (CRE) which is in liquidation, receivership or voluntary administration from the duties in Part 7A of the FMC Act, comprising:
full relief for a CRE which is in liquidation (solvent or insolvent) and for managers that are CREs in respect of a registered scheme (or fund within a scheme) that is in wind-up.
deferral relief for up to two years for CREs in receivership or voluntary administration.
The effect of full relief is that the climate reporting duties are cancelled. The effect of deferral relief is that climate reporting duties are deferred but must still be complied with at a later date.
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