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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Apex Advice Group and OPM Insurance merge

Apex Advice Group and OPM Insurance have announced their strategic merger.

Apex Advice Group and OPM Insurance have announced their strategic merger. OPM Insurance was founded by Oliver Pereira 17 years ago.

Craig Mulholland, Chief Executive of Apex Advice Group, said

“We are delighted to welcome OPM Insurance into the Apex Advice Group family. This partnership strengthens our position as a leading financial advisory firm and allows us to expand our reach and offerings. We are confident this will benefit our clients and drive continued growth.”

 

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Deepfake scams on the rise

Research commissioned by MasterCard has found that 29% of New Zealanders and 18% of NZ businesses have been targeted by deepfake scams in the past year.

Research commissioned by MasterCard has found that 29% of New Zealanders and 18% of NZ businesses have been targeted by deepfake scams in the past year. Deepfake scams use generative artificial intelligence (AI) to impersonate individuals, with the aim of stealing their targets’ money or personal information.

Deepfakes scams can utilise video, images and audio and can look increasingly convincing. Confidence levels in the ability to correctly identify deepfakes are low, with only 12% of respondents confident they would be able to detect a deepfake scam. Deepfakes are eroding trust in public figures and digital platforms, with 41% of individuals being more sceptical towards celebrities and influencers; 61% of kiwis being less trusting of social media platforms; 40% of New Zealanders being less trusting of emails and 37% of respondents being less trusting of phone calls compared to the previous year.

Some steps businesses are taking to address these risks include employing identification verification for accessing sensitive information, offering cybersecurity training and conducting training on financial transactions.

 

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IFINZ publish report on diversity

The Institute for Finance Professionals New Zealand Inc (INFINZ) has published a report on diversity, Insights Research in Support of a Diversity, Equity & Inclusion Action Plan for INFINZ, 2024. In particular, the report focuses on Māori representation and inclusion across the finance sector, and women’s representation in senior roles.

The Institute for Finance Professionals New Zealand Inc (INFINZ) has published a report on diversity, Insights Research in Support of a Diversity, Equity & Inclusion Action Plan for INFINZ, 2024. In particular, the report focuses on Māori representation and inclusion across the finance sector, and women’s representation in senior roles.

Barriers to Māori representation and inclusion included: lack of representation at senior levels to drive change; a lack of representation at all levels; Māori values not being understood or embraced. Barriers identified for women’s representation in senior roles included: recruitment practices and networking practices not favouring women; an unwelcoming finance sector public image; needing flexible working and strong paid parental leave policies in place; current leaders being resistant to change; career breaks for childcare/caregiving roles.

Stakeholders came up with a range of ideas for how to implement change. For Māori representation and inclusion, ideas included: showcasing Māori role models; connecting with iwi and Māori community networks; inclusive recruitment, including targeting and investing in young people; quotas and targets; embracing te ao Māori; recognising and remunerating for cultural practices; having a Māori network in the finance sector; building a charter or accord, supported by training and resources.

For women’s representation in senior roles, ideas for change included: inclusive recruitment; showing women role models in the sector; having quotas and targets; have coaching, mentoring and sponsorship programmes; offering flexible promotion pathways and roles/support for those returning to the workforce; strong paid parental leave policies; building a charter or accord, supported by training and resources.

Of the ideas for change, INFINZ have narrowed these down to a list of actions areas to consider as part of its future DEI activity. The areas for consideration include: a communications and awareness campaign; te ao Māori training and education; supporting the development of a Māori finance network; a Tūakana Tēina network and a DEI organisational network; scholarships; male allyship programmes; training and development for parents returning to work; advocacy and support. They also consider supporting a charter or accord covering recruitment practices; gender and ethnic pay gap reporting; cultural safety programmes; remuneration for cultural services; having women on recruitment panels and shortlists; paid parental leave top-ups and the ability to be promoted while on leave; paid parental leave targeting men; increasing the availability of high-quality part-time roles; implementing returner programmes and policies.

We’d be interested in hearing your views – what does your organisation currently do well? What initiatives would you like to see implemented?

 

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Graeme Lindsay has died

Graeme Lindsay, a life insurance industry stalwart, has died of cancer. Adviser and pioneer insurance product researcher, his presence will be remembered and missed.

Graeme Lindsay, a life insurance industry stalwart, has lost his battle with cancer. Throughout his career Lindsay worked as an adviser, was involved in an industry association, was a member of Million Dollar Round Table, and founded Strategy Financial Services, a business that provides analysis to life and health insurance agents. He was a competitor of ours and yet we will miss his presence in the industry. Whether he was writing about products or insurers he was always keen to highlight the value of good insurance coverage and identify issues that needed to be addressed. He was a pioneer in our sector.

Last December, Lindsay posted on LinkedIn explaining his situation and advocating for everyone to review their insurance cover and make sure they had the right policies and cover in place.

The funeral for Lindsay is scheduled to be held on Monday.

We will miss his voice in our sector.

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Fidelity Life announce mortgage cover enhancements

Fidelity Life has announced enhancements to their Monthly mortgage repayment cover and Mortgage Protection Cover.

Fidelity Life has enhanced their Monthly mortgage repayment cover and Mortgage Protection Cover. From 20 June, the insurer is lifting the offsets thresholds for these covers from $5,000 to $7,500, providing greater certainty at claim time for customers with high incomes or large mortgages.

In addition, customers can choose to base their cover on 115% of their rent payments.

Chief Commercial Officer Bronwyn Kirwan says

“These enhancements deliver more support and security for customers, whether that’s through keeping more money in their pockets before offsets start to apply, or offering greater support for renters. By providing more options, we aim to help more New Zealanders get the cover that works for them.”

 

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AIA appoints Chief Product and Strategy Officer

AIA NZ has appointed Alex Kühnast as Chief Product & Strategy Officer.

AIA NZ has appointed Alex Kühnast as Chief Product & Strategy Officer. Kühnast  joins AIA from KPMG New Zealand, where we was Principal – Head of Insurance Consulting & Actuarial Services. In his newly created role, Kühnast will look after Product, Pricing, Investments and Strategy.

AIA NZ CEO Nick Stanhope said

"Alex’s appointment is exciting for us. He is a natural fit at AIA NZ with his passion for health and wellbeing, and he has a wealth of international experience, having lived and worked in his home country of South Africa, the Netherlands, United Kingdom and of course now New Zealand.”

 

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Government has repealed parts of the Credit Contracts and Consumer Finance Act

The government has repealed some parts of the Credit Contracts and Consumer Finance Act (CCCFA).  Commerce Minister Andrew Bayly said of the affordability regulations introduced to the CCCFA in December 2021

“These regulations created unnecessary compliance costs and are an excessive barrier for lending. And worse, the regulations failed to protect the most vulnerable Kiwis – the very people they were intended to safeguard”

The time to process loans increased substantially, with Minister Bayly saying some lenders had told him small loans that used to take two hours to process took up to eight hours to process under the new regulations.

Additional reforms to the act include:

  • Improving dispute resolution to better protect consumers.

  • Exempting councils from the CCCFA so they are able to offer low-risk financial products to help households improve their energy efficiency by installing heat pumps and insulation.

  • Removing duplicate reporting requirements.

We hope that the relaxation on small loans flows through to banks being able to offer more flexibility to people with what amounts to a timing issue, rather than a lending issue. But we know that lending rules are notoriously difficult to manage. This is one of the reasons why aspects of the wider programme are of more interest.

Minter Ellison puts the changes into context within a program of changes to financial law and regulation which the government has planned.

Of particular interest are the changes in supervisions structures with the responsibility for administering the CCCFA moving from the Commerce Commission to the Financial Markets Authority. Lending is a financial product, and we think the Financial Markets Authority, with conduct supervision responsibilities and, essentially, all the other financial products, is probably a good home for this law from an ongoing regulation perspective.

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UniMed gets approval from RBNZ to take on Accuro’s portfolio

UniMed has received approval from the Reserve Bank of New Zealand to take on the portfolio of insurance co-operative Accuro.

UniMed has received approval from the Reserve Bank of New Zealand (RBNZ) to take on the portfolio of insurance co-operative Accuro.

Once Accuro’s 30,000 members have been transferred to UniMed, UniMed will be the third largest health insurance provider in New Zealand, with combined membership of 140,000.

Once the transfer is finalised, members will transition to being part of the UniMed society, though the Accuro brand will remain. Accuro members will continue to have the same policies and healthcare benefits as they do now. Once the transer is complete Accuro will cancel its insurance licence and take steps to dissolve the Accuro Health Insurance Society.

UniMed Chair Peter Tynan says

“The additional scale will ensure UniMed is in the best possible position to create efficiencies, develop new services and products and meet the challenges of increasing member expectations all at a time when the cost of health services is rising, and the regulatory environment continues to evolve.”

 

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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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Nick Astwick explains how Southern Cross Health Society remains economically sustainable     

Nick Astwick, chief executive at Southern Cross, has spoken about how Southern Cross Health Society remains economically sustainable. He details the three key things that the not-for-profit friendly society relies on to keep it sustainable.

Nick Astwick, chief executive at Southern Cross, has spoken about how Southern Cross Health Society remains economically sustainable. He details the three key things that the not-for-profit friendly society relies on to keep it sustainable:

·         Young and healthy members - Astwick talks about how having younger, healthier members keeps claims down.

·         Prevention – a focus on preventing sickness from happening, like a pilot programme the Health Society is running that offers bowel cancer screening.

·         Membership growth and retention – ensuring affordable coverage and accessible benefits to help maintain tenure.

 

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