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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IFSO reminds kiwis to review their insurance policies

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Kiwibank report $202 million after-tax profit

Kiwibank posted a record $202 million after-tax profit for the year to June 30 2024, up 15% from the previous year.

Kiwibank has featured in the news a lot recently, from the Commerce Commission’s recommendation that the Government should consider what is necessary to make Kiwibank a disruptive competitor, to the release of Kiwibank’s latest financial results.

Kiwibank posted a record $202 million after-tax profit for the year to June 30 2024, up 15% from the previous year. Kiwibank were able to grow their lending book by 9.3% to $32.4 billion. Impressively, home lending grew 2.7 times faster than the market and business lending grew 3 times faster than the market. Deposits increased by $2.4 billion, growing the deposit book by 9.4% to $28.2 billion

Steve Jurkovich, Kiwibank CEO, has said a $500 million capital infusion would

“give us a lot of runway to keep growing as fast as we are now, which is 9.5%, 10% [per annum], which is pretty large gains. That sort of investment over the next three, four years would give good runway.”

"With the right support and delivery of the right business plan and right initiatives, I think we could double our size in five years.”

Jurkovich has also said it may not be essential for the bank to remain 100% NZ owned, pointing to other examples of successful majority owned businesses like Air New Zealand. Jurkovich cautions that any requirement to pay sizeable dividends could impact their ability to grow, given that capital growth to date has mainly been via retained earnings.

Mortgage advisers now account for around 35% of Kiwibank’s total mortgage book, having originated 71% of Kiwibank home loans this year. Kiwibank’s accredited advisers have grown to about 1,000 now, up from 250 at June 30, 2022.

 

More news:

Report on the MAS 2024 Annual General Meeting released

Antonia Watson says the big banks can't afford to be NZ owned

TSB respond to the Commerce Commission’s banking study

FinTechNZ Hui Taumata 2025 is on 11 March 2025

Investment News release their KiwiSaver annual report

Study finds a majority of New Zealanders feel financially uncomfortable

Tips on what to eat to beat high blood pressure

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Commerce Commission release banking competitiveness study

The Commerce Commission have released the Final Report on personal banking competitiveness.

The Commerce Commission have released the Final Report on personal banking competitiveness. The 14-month market study found

“a stable, highly profitable, two-tier oligopoly with no disruptive maverick and a lack of obvious or aggressive price competition.”

The study found little strategic differentiation between the major banks and found their growth targets focus on maintaining market share and protecting margins and profitability, limiting competitiveness and innovation.

The Commission’s recommendations to Government can be grouped into four key areas and broadly speaking involve making Kiwibank a more disruptive competitor, accelerating progress on open banking, ensuring the regulatory environment better supports competition and empowering consumers.

While both the Finance and Mortgage Advisers Association of New Zealand (FAMNZ) and Financial Advice New Zealand (FANZ) have welcomed the report, after criticising the draft report which was released in March.  Since then, the Commerce Commission has engaged with both associations as well as other representatives from the mortgage industry to better understand the role advisers work.

Leigh Hodgetts, country manager of FAMNZ, has called out the Commerce Commission’s statement that advisers should put more emphasis on price, saying that there are many factors around individual circumstances that must be considered when a consumer takes a loan.

Financial Advice New Zealand said it would be seeking clarity on the recommendations, in an effort to determine any unintended consequences.

 

More news:

Tony Vidler recommends advisers can evidence why their advice was suitable at the time

mySolutions webinar 'The meeting before the meeting' 28 August

Asteron Life sale should be completed by the end of January 2025

Asteron Life profit after tax fell by 27% to $19m

Financial Advice NZ Central Branch Meeting 27 August

Financial Advice NZ webinar 'Financial advice is moving from product to people and from money to meaning' 4 September

Southern Cross Health Insurance opens nominations for Wayfinder Awards

ASB CEO Vittoria Shortt would like to see KiwiSaver policy changes

The FMA publish the latest 'Money with Mary'

IFSO needs to incorporate as a limited liability company for merger

Suncorp Group net profits after tax are up by nearly 12%

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AIA celebrate 5 years of AIA Vitality

AIA have released some statistics about AIA Vitality to celebrate five years of AIA Vitality being in the market

AIA have released some statistics about AIA Vitality to celebrate five years of AIA Vitality being in the market.

  • To date, over 60,000 people have joined AIA Vitality.

  • On average, an AIA Vitality member in New Zealand completes a health and wellbeing assessment available in the app every 15 minutes.

  • AIA Vitality members have completed over 18,500 free Vitality Health Checks.

  • Since becoming AIA Vitality members:

    • 79% have moved to a healthy glucose range from an unhealthy glucose range.

    • 64% have moved to a healthy cholesterol level from an unhealthy level.

    • 49% have moved to a healthy blood pressure range from an unhealthy range.

  • Less than 50% of New Zealanders meet the recommended guidelines of 2.5 hours of weekly physical activity but 95% of AIA Vitality Silver+ members meet this target.

  • AIA Vitality members combined have walked the length of New Zealand 1,295 times.

  • Members have achieved over 86,800 Status Reward vouchers and 976,500 Active Rewards vouchers – a combined worth of $9.1 million in rewards.

To celebrate the anniversary, AIA is giving customers who activate their AIA Vitality membership by 31 October the chance to win one of 20 Woolworths Gift Cards, each worth $500. Existing AIA Vitality members who hit their $5 weekly physical activity target anytime between 5 August and 1 September, go in the draw to win 1 of 5 Apple Store Gift Cards worth $729.

AIA have recently made some improvements to AIA Vitality, with a new AIA Vitality app with enhanced features and functionality being launched in April this year.

 

More news:

AIA offer clients a chance to win a year's insurance

The FSC runs a Money Month campaign on Money and You website

Partners Life and Banqer launch free financial literacy course

AIA appoint Bianca Bettini as new AIA Vitality Coach

Andrew Bayly says the CCCFA’s director and senior management liability provisions to stay

Westpac connect Volley to their Open Banking platform

Bell Gully put together an overview of the Customer Data Right bill and the CDR framework

Finance Minister says she wants external investors for outside capital for Kiwibank

GP’s having to raise fees after insufficient government funding increase

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Partners Life appoints new Chief Risk Officer

Partners Life has appointed James Greig as Chief Risk Officer.

Partners Life has appointed James Greig as Chief Risk Officer. Greig joins from Southern Cross Health Society, where he is the Head of Risk. Greig has more than 20 years’ experience across insurance and business roles in both New Zealand and Australia. He has held senior positions across strategy, operations, technology and risk roles, including six years as Director of Supervision at the Financial Markets Authority.

 

More news:

Nominations open for Kiwibank New Zealander of the Year Awards

NZUAC's 2024 Auckland Expo is on August 27

ANZ is being investigated by ASIC over allegations it manipulated Australian government bond sales

The Government hints they’re open to selling Kiwibank to enable it to grow

Lending and investment company Squirrel has been the target of a cyber attack

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Michael Weston talks about how he wants to take Partners Life forward

In an interview on Good Returns TV, Michael Weston, new CEO at Partners Life, talks about how he wants to move Partners Life forward.

Good Returns TV has an interview with Michael Weston, Partners Life CEO. Weston says in the four months he’s been in the role, he’s been spending a lot of time with our advisers, getting to know the regulators and key business partners.

Weston talks about how he’s working to continue the values and the culture of the brand and as he goes forward he’s concentrating on what the next stage of growth for the company will look like, looking to spot unserved needs and ensure Partners Life has the right capabilities in place. He wants to keep focusing on innovation and in terms of the business environment currently, looking at making their solutions simpler and more accessible to a wider range of New Zealanders.

 

More news:

mySolutions webinar 'New mySolutions Member Benefit - myGrowth Platform' 31 July

Fidelity Life roll out enhanced GP lookup feature for their new E-App

Last week for Fidelity Life's customer engagement initiative

nib offer customers 3 months free on Easy Health, Ultimate Health or Ultimate Health Max policies

Partners Life partner with Banqer for annual Money Month Challenge

David Carney talks about the role of AI in financial advice

Centrix’s latest ‘Credit Indicator Report' shows the number of people behind on payments has increased to 474,000

The Financial Services Federation signs up mortgage advisers as affiliate members

Kiwibank creates content series focusing on first homeownership

Apex Advice is looking for a Financial Adviser – Home Loans

Health Minister replaces Heath NZ’s board of directors with a commissioner in effort to address overspending

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AIA release 'Claims Compass' report analysing claims data

AIA have released a new report ‘Claims Compass’ analysing their claims data. Cancer was responsible for AIA’s highest number of claims across all insurance categories last year.

AIA have released a new report ‘Claims Compass’ analysing their claims data. Cancer was responsible for AIA’s highest number of claims across all insurance categories last year, with AIA paying out $133.9m for life insurance claims for cancer and $244.1m for cancer claims across all categories. AIA’s top cancer claims in 2023 were breast cancer (33.4%), melanoma and skin cancers (20.3%), bowel cancer (6.5%), prostate cancer (6%) and lung cancer (4.6%). Cancer is the leading cause of death and serious illness in New Zealand, with 71 people diagnosed with cancer every day in New Zealand.

Angela Busby, AIA NZ Chief Customer Officer, said

“Almost every New Zealander will have some experience with cancer throughout their lifetime – whether that’s personally or through a friend, neighbour or loved one…”

“The prevalence of these cancers highlights the critical importance of regular screening and taking preventative measures to manage your health and encouraging loved ones to do the same.”

“Because while developing cancer might appear to be something that is beyond our control, we know that early detection is the best form of protection. Many cancers can be successfully treated if diagnosed early, with an estimated one in three people recovering in New Zealand.”

AIA accepted 92% of all claims for the year ended 31 December 2023, paying out $734.8m. Of the total paid, $263.5m was paid out in life insurance claims and $143.1m was paid in health claims. The image below shows the reasons for claims across AIA’s life, health, trauma, income protection and total permanent disablement categories.

Reasons for claims across AIA’s life, health, trauma, income protection and total permanent disablement categories
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Poll finds expectation of higher growth in health insurance advice than life insurance advice

A riskinfoNZ poll has found that advisers are expecting to see more growth in health insurance advice than life insurance advice in the near future.

A riskinfoNZ poll has found that advisers are expecting to see more growth in health insurance advice than life insurance advice in the near future. Currently, 41% of respondents expect health insurance to generate the most business, compared to only 23% expecting life insurance to generate the most business. 30% of respondents expect a 50/50 split between health and life insurance advice.

We’d love to hear your thoughts, what do you see the split as being in your organisation over the next 6 – 12 months?

 

More news:

MAS looking for a Life and Investment Centre Manager

Kiwibank has pleaded guilty to systemic breaches of the Fair Trading Act

Workers are choosing work-life balance over a better salary

NZ’s CPI showed annual inflation fell to 3.3 per cent in the June quarter

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Legal and regulatory update for the life and health insurance sector

Office of the Privacy Commissioner asks for submissions on guidance; RBNZ activates DTI restrictions; FMA holds webinars on how to apply for a COFI licence and how to submit FAP regulatory returns; FMA publish findings from monitoring FAPs; The Accident Compensation (Interest on Instalment Plans) Amendment Bill was introduced to Parliament; APRA emphasise importance of data backups; CEO of the External Reporting Board resigns; COFR release latest Quarterly Statement; RBNZ releases dates for Monetary Policy Statement publication; Commerce Commission files criminal charges against Kiwibank

22 May 2024 -  The Office of the Privacy Commissioner asks for submissions on new guidance, Poupou Matatapu – doing privacy well. https://privacy.org.nz/news/consultations/poupou-matatapu/

28 May 2024 - The Reserve Bank of New Zealand - has confirmed the activation of Debt-to-Income (DTI) restrictions and loosening of Loan-to-Value Ratio (LVR) restrictions. https://www.rbnz.govt.nz/hub/news/2024/05/reserve-bank-activates-debt-to-income-restrictions

30 May 2024 - The Financial Markets Authority is holding a webinar on how to apply for a CoFI licence at 11am on 5 June. To attend, email cofi@fma.govt.nz

30 May 2024 - The Financial Markets Authority publish findings from the FMA’s supervision activities and monitoring of Class 1 and 2 licensed financial advice providers.  https://www.fma.govt.nz/news/all-releases/media-releases/fap-monitoring-insights-report/

30 May 2024 - The Financial Markets Authority is holding a series of online sessions to help Financial Advice Providers submit their FAP regulatory returns.

Session 1 - Friday 14 June 2024 at 9am
Session 2 - Monday 24 June at 2pm
Session 3 - Monday 08 July at 10am
Session 4 - Tuesday 16 July at 10am

30 May 2024 - The Accident Compensation (Interest on Instalment Plans) Amendment Bill was introduced to Parliament https://bills.parliament.nz/v/6/00103c69-0b28-4ad1-a702-08dc80370942?Tab=history

3 Jun 2024 - The Australian Prudential Regulation Authority (APRA) has written to all APRA-regulated entities emphasising the critical role of data backups in cyber resilience. The letter details the common issues observed in backup practices that could hinder system restoration during an incident. APRA expects regulated entities to review their backup arrangements and address any identified gaps promptly. https://www.apra.gov.au/news-and-publications/apra-clarifies-expectations-on-cyber-security-and-adequacy-of-backups

4 Jun 2024 - The Chief Executive of the External Reporting Board (XRB), April Mackenzie, has resigned. https://www.xrb.govt.nz/news/latest-news/

7 Jun 2024 - The Council of Financial Regulators release their Quarterly Statement for June 2024. Kris Faafoi joined the meeting to discuss the insurance sector’s priorities, risks, and challenges. The conversation covered three priority areas: 1) insurance affordability; 2) resilience; and 3) the regulatory environment. https://www.cofr.govt.nz/news-and-publications/quarterly-statement-by-cofr-june-2024.html

11 Jun 2024 - The Reserve Bank of New Zealand has released the dates for publication of its quarterly Monetary Policy Statement, Monetary Policy Review decisions and the 6-monthly Financial Stability Report. The new dates cover the period from August 2025 to July 2026. https://www.rbnz.govt.nz/hub/news/2024/06/monetary-policy-announcement-and-financial-stability-report-dates-for-late-2025-and-2026

11 Jun 2024 - The Commerce Commission has filed criminal charges against Kiwibank Limited (Kiwibank), alleging systemic breaches of the Fair Trading Act. The breaches relate to issues that resulted in more than $7 million being incorrectly charged to over 36,000 customers for fees and interest rates in relation to home loans, credit cards and overdrafts, over a period of several years. https://comcom.govt.nz/news-and-media/media-releases/2024/kiwibank-faces-criminal-charges-following-issues-that-caused-over-$7m-in-overcharges

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