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.
FSC produce a Retirement Planning Guide
The Financial Services Council (FSC) have produced a Retirement Planning Guide which introduces people to some key retirement planning considerations.
The Financial Services Council (FSC) have produced a Retirement Planning Guide which introduces people to some key retirement planning considerations.
The guide has a retirement planning overview, a ‘how to’ guide for Sorted tools and explains how to use the NZ Society of Actuaries’ rules of thumb.
The key considerations in retirement planning are how much you should save for retirement and what you can reasonably spend in retirement. The guide gives examples of matters within your control and variables outside your control which will impact on both of these considerations.
The Sorted tools that are particularly relevant are the KiwiSaver calculator and the Retirement calculator and the guide gives some tips on how to adjust these to reflect your situation.
The guide also explains the different rules of thumb developed by The New Zealand Society of Actuaries: 6% rule, inflated 4% rule, fixed date rule and life expectancy rule.
We think that the most valuable step you can take towards securing a good retirement is to get some advice. Although the DIY tools suggested in this guide can be useful in getting you thinking, this is a complex area in which an adviser adds real value. We suggest talking to a financial adviser with the right skills, experience and qualifications to help you set up a plan, monitor it and revise the plan when circumstances change.
Public health systems globally are under pressure
We’re seeing more and more stories of people unable to get the treatment they need from the public health system in a timely manner resorting to fundraising through sites like Givealittle to try and raise money to go private. Whether that’s raising funds to travel overseas for treatment or more recently a family waiting more than 10 months so far for what most people would consider a fairly common childhood surgery. Tauranga Hospital has been unable to provide a timeline for Natália Ferguson’s tonsil and adenoid removal surgery, saying that workforce shortages in the ENT department have impacted on both the number of patients waiting for treatment and the time spent on the waitlist. With Natália’s quality of life deteriorating and health declining, the family are trying to raise the funds for treatment themselves. I wonder, if there was capacity elsewhere in the system, could the family have not travelled to another region to get the surgery, especially given it’s usually an outpatient procedure? The creation of Te Whatu Ora was premised in part on upon removing the post code lottery, but how much progress has been made on this in the 12 months since establishment?
New Zealand isn’t the only country whose health system is stressed. The Economist has a story investigating why healthcare services globally are creaking under pressure. The article cites an Ipsos survey that questioned respondents about the quality of local health care; in almost all of the wealthy countries surveyed, people were less likely to say the service was ‘good’ or ‘very good’ than in 2021. The article has statistics from a broad array of countries illustrating how dire health services provisions have become, from waiting times in Canada reaching an all-time high (median delay of half a year between referral and treatment) to patients in Singapore waiting 13 hours to be seen at the average polyclinic (up from 9 hours in 2021).
The flow-on effects of the decline in health care are easy to see with ‘excess deaths” (those above what would be expected in a normal year) rising in many countries, for example, Germany is running about 10% higher than normal.
OECD countries are spending more on health-care as a percentage of GDP than before, but productivity has fallen. Why? The Economist points to several things that could be impacting the quality of care – burned out health care workers; exploding demand for services partly due to the delay in diagnosis due to lockdowns; sicker patients needing additional care because they weren’t treated in a timely manner; skyrocketing cases of endemic pathogens such as respiratory syncytial virus; and, of course, the ongoing additional burden on services that Covid imposes.
More daily news:
Ticket sales for the FSC Building Consumer Confidence Conference close tomorrow
August is Sorted's Money Month, with a range of in-person and online events
Amazon releases AI offering for healthcare sector that automates note-taking during consultations
Legal and regulatory update for the life and health insurance sector
31 Jul 2023 - Standards for designated Financial Market Infrastructures (FMIs) have been issued by the Reserve Bank of New Zealand and the Financial Markets Authority, following two rounds of public consultation. FMIs are multilateral systems (such as payments systems and central counterparties) that enable electronic payments and financial market transactions and are therefore essential for the day-to-day operation of the financial system and economy. The FMI Standards come into effect from 1 March 2024. https://www.fma.govt.nz/news/all-releases/media-releases/financial-market-infrastructures-standards-issued/
31 Jul 2023 - The FMA have published the FMA Outlook 2023/24, a one-page summary with details of the FMA’s priority objectives and intended programme of work for the financial year. https://www.fma.govt.nz/library/corporate-publications/fma-outlook/
1 Aug 2023 - The FMA has released a consultation document on its proposal to introduce a new standard condition for certain financial market licence holders.
The new standard condition proposes that licensees must have and maintain a business continuity plan that is appropriate for the scale and scope of its service, to make sure that their critical technology systems are operationally resilient. https://www.fma.govt.nz/assets/Consultations/Consultation-paper-Proposed-standard-condition-on-business-continuity-and-technology-systems.pdf?utm_medium=email&utm_campaign=FMA%20Update%20July%202023&utm_content=FMA%20Update%20July%202023+CID_f5788080dc9c22eb111e58e857d39bd0&utm_source=FMA%20Campaign%20Monitor%20Emails&utm_term=Read%20the%20full%20consultation%20document%20here
1 Aug 2023 - The FMA is supporting Sorted Money Month, led by Te Ahunga Ora Retirement Commission, by raising awareness of investment scams. A key message is “Hit pause before you invest” which reminds people to take extra care when searching online for investing opportunities to avoid being scammed.
1 Aug 2023 - The FMA will no longer be publishing the MIS and KiwiSaver quarterly fund update Excel sheets on their website.
1 Aug 2023 - The Australian Prudential Regulation Authority (APRA) has finalised new requirements for authorised deposit-taking institutions (ADIs), insurers and superannuation entities to publicly disclose information on aspects of their remuneration. Under the updates to Prudential Standard CPS 511 Remuneration, APRA-regulated entities will need to annually publish information on their remuneration frameworks, design, governance and outcomes. Larger and more complex entities must disclose additional quantitative information, including on payments to top executives and how they have placed a material weight on non-financial measures such as risk management. https://www.apra.gov.au/news-and-publications/apra-finalises-requirements-for-remuneration-disclosure
Financial Advice NZ will run ‘Maximise your money 5-day challenge’ for Sorted Money Month
Financial Advice NZ are running a 5-day maximise your money challenge this Sorted Money Month. The campaign is split by different age brackets and aims to help people learn tips and strategies for establishing good financial habits.
1 – 5 August – Maximise your Money in your 20s
7 – 11 August – Maximise your Money in your 30s
14 – 18 August – Maximise your Money in your 40s
21 – 25 August – Maximise your Money in your 50s and 60s
Sorted is running a series of webinars over Money Month
1 August – Sort your everyday money
1 August – Banqer: Virtual Economy Experience (supported by Partners Life)
8 August – Sort your debt
15 August – Sort your savings
22 August – Sort your KiwiSaver
22 August – Mint Asset Management: Making cents of your money
More daily news:
Fidelity Life paid out $30m in Trauma and Trauma multi claims last year
AIA’s latest claims stats show 93% of claims accepted
Partners Life’s latest claims stats show 89% of claims accepted
Financial Advice NZ webinar ‘Super Wednesday hosted by our Risk MAC' 9 August
Finalists for Financial Services Council 2023 Awards announced
Consumer NZ calls for NZ banks to match what UK & Australia banks do to combat cybercrime
Astrud Burgess appointed as ANZ Group Chief Marketing Officer
Scams on the rise in NZ
Scams have been taking prime place in the media recently, with everything from travellers being warned against connecting to Wi-Fi networks to police warning people what to look out for, police making significant arrests in term-deposit-style scams to the FMA warning about comparison websites.
Cert NZ recently reported that financial losses as a result of cyber crimes were up 66% in the first quarter of 2023 compared to the last quarter of 2022.
NZ banks and the Banking Ombudsman are working together to try and keep consumers safer from scammers. The latest initiatives is the 4 part documentary series ‘You’ve been scammed by Nigel Latta’, which starts tonight. Nigel explores the psychological tricks scammers use to exploit people and explains how better to protect yourself.
Miriam Dean KC, chair of the Banking Ombudsman scheme, said financial scams were rising exponentially and is urging banks to fast-track resolution of fraud complaints. Dean also called on other organisations oft impersonated by scammers, like NZ Post and Inland Revenue, to step up their activity in helping protect customers. Dean can see the benefits of setting up a dedicated anti-scam unit, the likes of Singapore’s Anti-Scam Command.
“Establishing an anti scam centre along these lines would have much to recommend it in my view, especially as a flood of scams grows day by day ... and scammers will turn to artificial intelligence to further their devious ends.”
More daily news:
Katrina Shanks writes of the importance of using simpler language
Sorted.org release new Money Personality Quiz
Swiss Re writes of restoring resilience: the need to reload shock-absorbing capacity
FinTechNZ: Importance of Data Quality for AML webinar July 25
Consumer Confidence Survey shows consumer confidence has improved but remains very subdued
Artificial sweetener Aspartame to be listed as “possibly carcinogenic to humans”
Financial Advice NZ’s Money Month Campaign needs your financial tips
This year’s Sorted Money Month is on the topic ‘Maximising Your Money’. Financial Advice NZ’s social media campaign will run across August 2023 and will comprise videos and fact sheets of top tips for different life stages.
Financial Advice NZ is calling for their members to make and submit videos sharing their top tips for maximising money for the following life stages:
• Top tips for when you’re young (20s-30s) – week 1
• Top tips for in your mid-life (40s) – week 2
• Top tips for pre-retirement (50-64) – week 3
• Top tips for retirement (65+) – week 4
Financial Advice NZ will credit all contributors in videos, fact sheets and social media posts, and will be promoting the importance of seeking professional financial advice. Find information on how to film and submit a video here.
More daily news:
Peter Fa’afiu appointed as an Independent Member Director on the Financial Advice NZ Board
The Retirement Commission launch De-jargoning Money initiative
Don Stewart, founder of the Stewart Group, retires