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.
Fidelity Life announce product enhancements and digital, service, and retention initiatives
At Fidelity Life’s Engage 2024 conference, Fidelity Life announced a range of product enhancements, digital, service and retention initiatives and other news.
Trauma and Life covers: The entry eligibility for the Inbuilt Child’s Trauma benefit has been reduced from two years to three months, allowing more families to receive early protection. A new, separate benefit specifically for newborns facing trauma has also been introduced. Fidelity Life will also trail a premium discount for defined exclusions on trauma covers in the coming months.
Condition Definitions: Refinements have been made for clarity, and Terminal Illness has been introduced as a defined condition across the trauma range, including Child's Trauma.
Bereavement and Child’s Funeral Benefits: The Bereavement Benefit has been increased from $15,000 to $25,000, and the Child’s Funeral Benefit has been increased from $3,500 to $15,000 for children aged 10 to 20.
Grief Counselling Benefit: A new benefit offering an additional $2,500 to the sum insured.
Financial Planning Benefit: Easier access by removing thresholds and extending the claim period.
New Specific Injury Cover: A low-cost solution that pays a lump sum for any of 30 defined injuries.
Live Chat: Quick and easy access to New Business and Underwriting teams via Adviser Centre.
New-Look E-App: A modern and intuitive user experience launching in March 2025. The E-App’s latest upgrade goes live later this month, with the new ‘share’ feature enabling advisers to send a link to their customers, allowing customers to complete all or part of the application on their own.
Dedicated Adviser Service Team: A team committed to servicing all adviser needs.
Enhanced Retention Tools: Including renewal reminders and automated SMS reminders for customers. There will be additional roles created too.
Expanding adviser support roles: Fidelity Life are creating new roles, including a National Partnership Manager for mid-sized and corporate firms, as well as an Auckland Business Manager and a Desk-Based Business Manager, to provide more tailored support and drive closer engagement.
Adviser Edge Programme: New additions to the programme include an invitation-only overseas study tour and new practice manager masterclasses for admin staff.
Grow Together programme: Coming in early 2025, the invitation-only Grow Together programme will provide dedicated, prioritised support across key areas including new business, underwriting, and retention. Advisers in the programme can expect to benefit from dedicated support resources, exclusive benefits, and access to a wide range of support tools and professional development opportunities.
Adviser Council: Fidelity Life are inviting advisers to express their interest in joining their Adviser council, which meets quarterly with Fidelity Life’s leadership team to discuss industry updates, share market trends, and provides objective feedback on their initiatives.
Adviser relationship survey: To better understand market perceptions and Fidelity Life are launching a bi-annual Adviser relationship survey to provide key insights into advisers' experiences and expectations and where Fidelity Life need to improve.
Group Solutions enhancements: From early 2025, Fidelity Life will be launching a quarterly industry insight, Group IQ; holding an annual onsite Group HQ conference for the top 30 group advisers; and launching a new group solution designed for small businesses, providing enhanced tools and technology for a smoother experience and better outcomes.
Bronwyn Kirwan, Fidelity Life's Chief Commercial Officer, said
"We are thrilled to introduce these new product enhancements and initiatives. They are a testament to our ongoing commitment to providing our advisers and customers with the best possible support and value.
These enhancements deliver more value, greater accessibility, and increased choice."
More info:
Chubb Life change underwriting process for Mortgage Repayment Cover
Partners Life are holding Summer Roadshows in November & December
AIA has launched new Specified Accidental Injury Cover product
AIA survey advisers around the need for terminal illness cover
AIA Vitality members can get up to 40% off Garmin and New Balance
The FSC has recorded a small deficit of almost $46,000 before tax over the 12 months to June 30
ICNZ has welcomed the passage of the Contracts of Insurance Bill
Financial Advice NZ's national adviser conference is on 1 - 3 April 2025
mySolutions webinar 'Why Chubb?' 27 November
Lyka Burr & Vincent Zhang join TAP's compliance and governance team
Unimed offer psychologist led introductory sleep workshops
Ashleigh Buchanan from Southern Cross Health Insurance named Emerging Leader of the Year
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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AIA introduce new cover for prophylactic surgery following cancer
AIA have enhanced their on-sale health insurance products as well as eligible closed products to cover prophylactic or preventative surgery following an acceptable breast or ovarian cancer claim, subject to certain criteria.
AIA have enhanced their on-sale health insurance products as well as eligible closed products to cover prophylactic or preventative surgery following an acceptable breast or ovarian cancer claim, subject to certain criteria.
Previously AIA’s health insurance products specifically excluded preventative treatment including those related to cancer. The changes came about after a need was identified through customer feedback. Details of the changes are available here.
Insurers have been getting increased requests for preventative treatment to be available. One example of the media coverage is available at One News here.
Comments like this one sum up the media view: “If you had a very high cancer risk, but there was surgery available to cut that risk by up to 90% - that would be amazing, a no-brainer, right?” – well, it depends on what you mean by a ‘very high rate of cancer’. That risk must outweigh the risks associated with a preventative surgery. It will not be the same for all clients – and may vary depending on each person’s circumstances.
These trade-offs make it a much more difficult decision to make than funding cancer treatment itself. Insurers are conservative and usually wait many years to assess data to decide whether to cover different treatment types. That’s bad news for individual customers who have an expensive and difficult choice to make, but it helps protect the interests of hundreds of thousands of other customers, who need affordable cover.
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Financial Advice NZ webinar 'Te Ara Ahunga Ora/Retirement Commission' 27 March
Peter Mensah appointed to Regional Manager – North Island at Chubb Life
Chubb's new advertising campaign features Phil Thompson
Southern Cross announce winners of the Wayfinder Awards
The Retirement Commission asks for feedback on a shared measurement tool for financial wellbeing
Capgemini’s World Life Insurance Report 2023
Capgemini have published their World Life Insurance Report 2023, ‘The aging well opportunity: how trust and engagement can unlock growth for insurers’.
Capgemini have published their World Life Insurance Report 2023, ‘The aging well opportunity: how trust and engagement can unlock growth for insurers’.
This report looks at how people are living longer and healthier lives and the implications for individuals and organisations who will be impacted including life insurers, retirement advisers, pension providers, brokers and agents.
By 2050 3.2 billion people, 33% of the world’s total population, will be 50 years or older. The dependency ratio – the ratio of the dependent population (aged 65 and above) to the working-age population (aged 15 – 64) – of 15% today is predicted to increase to 26% by 2050. Currently 40% of the top 40 global life insurers’ assets under management are held by those 65 years or older – by 2040 most of these assets will be transferred to their beneficiaries aged 50+.
At a time of declining governmental support and increasing healthcare costs, individuals will need to shoulder more of the financial responsibility for aging well. The World Economic Forum predict the retirement protection gap (the difference between desired retirement income and actual income from pensions, savings and social security) will quadruple by 2050, to a staggering 400 trillion USD in markets with the largest and most established pension systems. In some cases, this will lead to those aged 65 and older having to work longer.
Worryingly, Capgemini’s 2023 Voice of the Customer survey of policyholders across 20 markets found that 60% of those 65 or older have not sought professional financial advice to prepare for retirement or to transfer their wealth. With demand for life insurance, long-term care services and financial advice predicted to skyrocket between now and 2030, there are plenty of opportunities for advisers to make their mark.
Consumers have called out product complexity (39%), limited awareness (39%) and lack of trust (28%) as their biggest obstacles to life insurance product adoption.
Capgemini have identified current gaps between what policyholders want and insurers can deliver, and steps insurers can take to foster deeper partnerships and enhance customer lifetime value. The steps include creating personalised and bundled aging-well propositions; streamlining the purchase experience; accelerating risk assessment; engaging more widely and frequently; and elevating the claims experience.
Capgemini call out the need for more advanced technology and more robust data analytics to help engage more effectively and productively with clients, delivering better recommendations and more personalised plans. They highlight the importance of delivering comprehensive and innovative aging-well value propositions that meet a broader range of customer needs. After all, strengthening relationships with aging policyholders and their beneficiaries is critical to safeguard assets under management.
AI and Machine Learning are driving benefits and reducing headcount in the insurance sector
A survey of insurers by Rackspace has found that the implementation of Artificial Intelligence (AI) and machine learning (ML) technologies are driving benefits and enabling the reduction of headcounts.
A survey of insurers by Rackspace has found that the implementation of Artificial Intelligence (AI) and machine learning (ML) technologies are driving benefits and enabling the reduction of headcounts.
The survey found over the past 12 months 62% of insurers had cut staff numbers due to the implementation of AI and ML. They found that the new technology enabled low-level analyst work to be completed by AI and ML. 52% of respondents said they had already realised substantial benefits from AI/ML, with a further 23% seeing modest benefits. 25% of respondents said it was too early to tell.
The benefits insurers listed from implementing AI/ML were
81% risk reduction, increased understanding of business/customers
79% increased sales
77% personalised marketing
75% increased productivity
73% increased revenue streams, operation cost reduction
69% improved customer satisfaction
67% faster time to profitability, reduced cost of new product development, ability to hire/recruit new talent
65% increased innovation
There are still some issues with AI, with 42% only ‘slightly trusting’ AI/ML results compared to 28% ‘strongly trusting’ results.
Talent and skill shortages were seen by 67% as the greatest challenge to further adoption of the technology; however 90% of insurers had grown their AI and ML workforce in the past 12 months.
Although this survey lumps AI and ML together there are some fundamental differences. Machine learning can be disconnected from the large volumes of training data that are used in generative AI such as Chat GPT. Although that may sound like a disadvantage, narrower pools of training data can make results from machine learning applications much more accurate for highly specific tasks. It also means that data does not have to be shared with generative AI engines – its can remain in confidential silos within the business.
ChatGPT recently put forward it’s arguments for how it can positively impact the insurance industry. While there are still plenty of cons to using ChatGPT right now, ranging from inbuilt biases and prejudices to its failure to comprehend nuance such as sarcasm, some insurance executives believe the underlying technology could be used as a starting point to build on and to jumpstart innovations in the sector.
At Quality Product Research Limited we agree that there are some great opportunities for implementation of AI and ML initiatives. With more than 15 million quotes and over 1.25million data points of data in our research databases we are well positioned to employ these tools to greater effect over the coming years.
nib announce product refresh
nib have announced changes to most of their legacy and on-sale retail and group health products.
nib have announced changes to most of their legacy and on-sale retail and group health products. One of the reasons for the move was to better align the benefits of their legacy and on-sale products, to make it easier and quicker to process claims, and in doing so, reduce costs and help contain premium increases. Changes to client’s cover will take place on their next policy anniversary, commencing from 1 February 2024 and then over the following 12 months.
Changes include:
· aligning many of the benefit terms of the retail and group health cover benefits to those of Ultimate Health
· aligning benefit maximums of the legacy products to those of the comparable on-sale product
· Group cover benefit terms will also be refreshed
· small enhancements to Ultimate Health Max and Ultimate Health benefit terms.
Adviser FAQ’s are here and more details about the changes are included in the supporting collateral available on nib’s adviser portal, in the Public Documents tab under Product Refresh Documents.
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New assessment tool could transform the diagnosis of dementia in Māori kaumātua
2023 at Quality Product Research Limited
As always, we’ve had the chance to investigate some topical themes in our quarterly reports, highlights this year being: a discussion on using AI in financial advice, particularly ChatGPT and its challenges, limitations and factual errors; an analysis identifying how many financial advisers are connected to each financial advice provider and another on how many financial advice providers and financial advisers there are; just how much an adviser tech stack can cost; and exploration of causes for lapses in the NZ insurance market.
We haven’t been resting on our laurels here, with loads of product enhancements delivered this year including our shiny new website and branding. Quotemonster have made a series of upgrades including completing our two-factor authentication (2FA) process, adding a Remote Assistance function, improved the Advicemonster Quote Wizard, added a beta Upload Insurance Quote function that will automatically input in your Quotemonster Client and Benefit Details, established the Quotemonster Advisory Board, held a Nationwide Quotemonster roadshow across 15 towns (and online too!) with over 1100 people registering to attend (see some pics below), made legacy research live on Quotemonster and added business insurance to Advicemonster. Phew!
We’ve welcomed Kim Oliver and Aneel Ravji to the QPR team. Kim is our new Research and Customer Service superstar and helps keep the research database up to date and supports advisers with their queries. Aneel is our AdviceTech lead and his role is assisting advisers with their advice process – if you have any questions about what Advice Monster can do for you and your business, contact Aneel today.
We’ve loved exploring wider industry news on the blog, with some favourites this year being AI’s disruptive influence on the global economy; opportunities for advisers and how Australia’s Federal Government is seeking feedback on the use of genetic test results by insurers.
We want to say a huge thank you from the Chatswood and QPR teams. We have thoroughly enjoyed working with you over the past year and look forward to another exciting year in 2024. A reminder that our office will be closed from the 22 December 2023 – 8 January 2024.
We hope you all have a wonderful break, and we look forward to working with you in 2023.
Best wishes, from all the team at Chatswood and Quality Product Research.
Asteron Life sees uptick in lapse rates
Asteron Life’s executive general manager Grant Willis spoke to Good Returns about increasing lapse rates, levels offerings and changing adviser profiles.
Asteron Life’s executive general manager Grant Willis spoke to Good Returns about increasing lapse rates, levels offerings and changing adviser profiles.
Anecdotally, advisers are starting to see more household budgets under financial pressure. Willis said Asteron Life is seeing more cancellations and alterations to policies to reduce premiums and/or scale the sum insured back, despite having one of the best lapse rates in the industry. Willis highlights the importance of product flexibility during times such as these, with Asteron Life customers being able to pick different levels of cover, level of yearly renewable term and even the availability of inbuilt premium holidays that customers can take under specific pressure.
Willis talks about how he’s seeing a lot of new advisers coming though, younger people and perhaps people in second careers, plus children following their parents into financial advice.
More daily news:
FMA release the results of its annual Ease of Doing Business survey
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Graeme Lindsay talks about the best health insurance to have
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Next week is Fraud Awareness Week and the SFO is running a webinar series
The Serious Fraud Office (SFO) is running a series of webinars for Fraud Awareness Week, which runs from 12 – 18 November 2023.
We have written about how scams are on the rise in NZ and how the NZ banking sector has announced new measures in the fight against fraud. Now a recent Grant Thornton New Zealand survey has found only 41% of business owners, leaders and decision makers undertake specific planning for fraud risk, so there’s no better time than now to increase your knowledge in this area. The Serious Fraud Office (SFO) is running a series of webinars for Fraud Awareness Week, which runs from 12 – 18 November 2023.
Monday 13 November 12.00-1.00pm
Cyber-enabled fraud - this session will explore what cyber-enabled fraud is and some of the ways you can lock your digital door to fraud.
Wednesday 15 November 12.00-1.00pm
Fraud and Artificial Intelligence - hear from two AI specialists about how fraudsters can use AI to commit their crime as well as how AI can be used to help prevent and detect fraud.
Friday 17 November 12.00-1.00pm
True Crime: SFO case study - hear from two of the SFO team about cases they have worked on and how the lessons they learned can help prevent similar financial crimes occurring again.
To register to attend the webinars, contact the SFO at counterfraud@sfo.govt.nz.
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FBAA say lifting the number of mortgages written by independent advisers is top priority
TSB appoints Kerry Boielle as new CEO
Westpac chief executive Catherine McGrath says principles-based legislation is a good thing
Chubb Life remove medical loading conditions on their 10% Lifetime Reward benefit
Chubb life have removed the medical loading conditions from their 10%…
Chubb Life have removed the medical loading conditions from their 10% Lifetime Reward benefit from 25 October 2023. This means all new Life, Life Income and Trauma insurance customers who, at the time of taking out an Assurance Extra or Assurance Extra Business policy have a healthy BMI measurement of between 18.5 and 24.99 and are non-smokers, qualify for the benefit. The 10% discount is guaranteed for the life of the customers policy and will be applied to the risk premium for the eligible covers. FAQ’s around the 10% Lifetime Reward benefit can be found here.
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