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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The FSC has released its latest Money & You research

The Financial Services Council (FSC) has released their latest research report, Money & You: Managing Risk Through Challenging Times, which explores the attitudes of New Zealanders towards risk management. Some of the key findings are below.

  • Only 41% of respondents had life insurance, 39% had health/medical insurance, 23% had trauma/critical illness insurance, 18% had total and permanent disability insurance.

  • For the 12 months to 30 September 2024, FSC industry data showed 1,521,740 health insurance policies and 4,145,287 life insurance products (one person may have more than one policy e.g. life insurance, income protection insurance and total and permanent disability insurance policies).

  • The majority (66%) who have life and health insurance consider it value for money.

  • The biggest drivers of taking out life and health insurance policies are peace of mind and worry about financial consequences.

  • The most common reason given for not having life and health insurance was that insurance is too expensive (74%), followed by being healthy and not seeing the need for it (14%), and not trusting insurance companies (13%).

  • Cost of living meaning people can no longer afford insurance was the top reason given for no longer having insurance across life, trauma or critical illness, income protection, total and permanent disability and health/medical.

  • For those without insurance, 64% would consider taking out an insurance policy if they had more money, 25% would take out an insurance policy if their health started declining and 18% would take out an insurance policy if they started a family. There is a gap in understanding of how insurance works, with only 3% of those who would consider taking out an insurance policy if their health started declining knew that they might not be able to get cover for certain health issues or they might face higher premiums because of them.

  • The majority of health (61%) and life (77%) insurance policies are paid by individuals, with the remainder being partially or fully subsidised by employers.

  • When it comes to health/medical insurance or life insurance being provided by employers, 54% really want this and a further 35% might possibly want this.

  • 45% of respondents have a poor understanding of the relationship between risk and return.

2,002 online survey responses were collected during March 2024 and were representative of the NZ consumer population in terms of age, gender and income.

It is worth noting that as a low engagement product, life and health insurance is something that respondents find hard to recall accurately. That leads to interesting results - this survey contains a probable over-estimate of the number of people who own health insurance, and a probable under-estimate of the number of people who hold life insurance. But the recalled level of cover is, in itself, interesting. For example, if you think you do not have life, trauma, or income insurance, but in fact you do, you or your estate may fail to claim when you may be eligible to do so.

Readers interested in contrasting these survey results with data on the eligible population should contact us.

More news:

Partners Life has decided to stop using its Customer Outcome Matrix

Southern Cross Health Insurance appoints Grant McIvor as chief digital officer

MAS looking for a Head of Technology Strategy and Architecture

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Steve Wright talks about reducing advice risk

Steve Wright tackled the question of reducing advice risk recently in a Good Returns article.

Steve Wright tackled the question of reducing advice risk recently. He asserts that in light of the largely untested ‘principles-based’ requirements FAPs and advisers must stick to, he’s not surprised that some advisers are experiencing stress. Steve sets outs a range of steps advisers could take for reducing advice risk. A good read if this is something you want to tackle.

 
 
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Legal and regulatory update for the life and health insurance sector

ASIC issue update on licensing; AML/CFT reforms to come; FMA research on KiwiSaver providers; RBNZ publish Governor's speech on improving Māori access to capital; APRA release June 2024 quarter insurance statistical publications; Updated AML/CFT Programme Guideline released.

11 Oct 2024 - ASIC issues 2023-24 update on licensing and professional registration activities. https://asic.gov.au/about-asic/news-centre/news-items/asic-issues-2023-24-update-on-licensing-and-professional-registration-activities/?altTemplate=betanewsroom

13 Oct 2024 - The Government will reform New Zealand’s Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) system. https://www.beehive.govt.nz/release/government-provide-significant-regulatory-relief-business

14 Oct 2024 - Research from the FMA has found most KiwiSaver providers are well placed to manage their exposure to the commercial real estate market but more work can be done to mitigate and communicate the risks.  https://www.fma.govt.nz/news/all-releases/media-releases/research-on-cre-and-the-kiwisaver-industry/

14 Oct 2024 - RBNZ publish Governor Adrian Orr's keynote speech: Improving Māori Access to Capital. https://www.rbnz.govt.nz/hub/news/2024/10/improving-maori-access-to-capital

14 Oct 2024 - APRA has released its suite of quarterly industry aggregate insurance statistical publications for the June 2024 quarter.  https://www.apra.gov.au/news-and-publications/apra-releases-quarterly-insurance-statistics-for-june-2024

14 Oct 204 - The Department of Internal Affairs, the Financial Markets Authority and the Reserve Bank of New Zealand have released the updated Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Programme Guideline.  https://www.dia.govt.nz/Updated-AML-CFT-programme-guideline---October-2024

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New Active Benefits are now available to Accuro policyholders

Accuro Policyholders now have access to a range of Active Benefits, as part of their UniMed membership.

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Asteron Life rating downgraded

S&P have lowered Asteron Life's financial strength and issuer credit ratings to 'A' from 'A+' and given them a stand-alone credit profile of 'a-'.

S&P have lowered Asteron Life's financial strength and issuer credit ratings to 'A' from 'A+'. After a review, S&P has given Asteron Life Ltd a stand-alone credit profile (SACP), which reflects the insurer's satisfactory business risk profile, of 'a-'.

The reason given for the downgrade is an expectation of reduced support from Suncorp Group Ltd in the leadup to the sale of Asteron Life, due to be completed at the end of January 2025. S&P have stated that the ratings on Asteron are on CreditWatch because they believe they will likely lower the ratings if the sale proceeds, with a likely outcome of a one notch ratings downgrade.

 

More news:

NZFSG introduce several changes within their distribution team, including appointing new Regional Manager Zane Low

Incentives for those advising consumer clients set to change on 31 March 2025

mySolutions webinar 'Asteron ConnectedCare' 4 September

UniMed Breakfast Series 'with Conrad Goodhew 8 October

Fidelity Life release details of their customer engagement forum

Fidelity Life announce Apollo enhancement

Financial Advice NZ Professional Ethics Workshop 26 September

Apex Advice looking for an experienced Marketing & Communications Specialist

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Life advisers reminded they need to actively review legacy policies

Compliance Refinery director Steve Burgess has reminded life insurance advisers they need to review legacy policies or risk opening themselves up to censure by the FMA.

Compliance Refinery director Steve Burgess has reminded life insurance advisers they need to review legacy policies or risk opening themselves up to censure by the Financial Markets Authority (FMA).

Speaking at a Quotemonster roadshow event in Lower Hutt, Burgess said of legacy products,

“If you don't look at it, the regulator could decide that's you saying that product is suitable for your client.”

Burgess also cautioned that some legacy products have features that are difficult or impossible to replicate with new policies, so as well as listing the advantages of replacement policies, advisers need to be recording any disadvantages clients may face if they change.

Steve Wright has also written of how the FMA have flagged ‘suitability of advice’ as something they will be focusing on in future. Wright has helpfully listed some steps advisers should be following to help ensure the suitability of their advice, including having a suitable fact find process; needs analysis and quantification of client risks; avoiding limiting or transferring risks to an insurer; assessment of insurance types required and sums insured; and giving appropriate product recommendations.

 

More news:

Financial Advice NZ's webinar on the Code of Professional Conduct is on 28 August

ASB's net profit after tax down 10% from previous year

Travis Hamilton named the New Zealand country Chair for the Million Dollar Round Table organisation

Patients across the country concerned at GP fee increases; GP’s say capitation funding insufficient

Most KiwiSaver providers have now submitted their KiwiSaver climate reports

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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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Momentum Life streamline quality assurance processes using AI

Momentum Life has adopted an AI-powered compliance and quality assurance tool, QBOT (Quality Bot). QBOT transcribes call recordings from Momentum Life’s contact centre, almost in real-time, saving on expensive and time-consuming call reviews. QBOT also identifies and flags calls for further review.  Employees can easily access results, monitor call compliance and focus efforts on calls and agents that need support.

 Implementation of the tool has allowed Momentum Life to handle increasing workloads without expanding its workforce and is freeing up staff to focus on other aspects of quality assurance and risk management.

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NZFSG announce new non-executive director

The NZ Financial Services Group (NZFSG) has appointed Thérèse Singleton as a non-executive director.

The NZ Financial Services Group (NZFSG) has appointed Thérèse Singleton as a non-executive director, with the aim of enhancing NZFSG’s support for advisers by improving compliance, risk management and strategic operations. Singleton is currently the chief operating officer at insurance company Ando and is a member of the NZ Financial Advice Code committee.

Brendon Smith, board chair of NZFSG said

“Thérèse's extensive knowledge and exceptional track record in both the financial and insurance sectors make her an invaluable addition to our board.

Her insights will be pivotal as we continue to navigate through evolving regulatory environments and strive to set new standards in adviser services.”

 

More daily news:

MAS looking for a Head of Growth Markets

Jon-Paul Hale discusses complexities of policy replacement and servicing commissions

RiskInfoNZ Poll finds 85% of respondents' clients are reducing or cancelling their insurance cover

Financial Advice NZ webinars Professional Ethics Workshop 20 June

Kumeu Rugby Club won the nib Little Legends $10K Relay

Southern Cross Healthcare introduces new operating theatre training programme, Periop 101

AIA NZ women won the AIA Global football champs in London

Kiwibank win at the 2024 Genesys Customer Innovation Awards

The FMA publish May's 'Money with Mary'

61% of advice practices in Australian are one-person bands

Interest.co.nz estimate mortgage broker earnings

 Access to life-changing MS drug delayed due to staff shortages

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