New Chair of Southern Cross Medical Care Society appointed

Chris Black has been appointed Chair of Southern Cross Medical Care Society (Health Society). Black joined the Health Society Board in 2021. Black has held a range of leadership positions over the course of his career, including Chief Executive of Farmers Mutual Group, ICNZ President and Commissioner of the Insurance & Financial Services Ombudsman Scheme. He is currently a Trustee of the Southern Cross Health Trust, Chair of the Natural Hazards Commission and Rabobank New Zealand, and a Trustee of the Mental Health Foundation.

Outgoing Chair Murray Jordan retired at the organisation’s Annual General Meeting (AGM) last week.

More news:

Reminder advisors must take note of supervisor guidelines on AML/CFT

Empower Women Networking Events 6 & 11 March

FSC seek feedback on FMA's proposed exemption for Climate Reporting Entities

Surgeons at Southern Cross North Harbour Hospital win research award

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

Recent rate changes on Quotemonster

Dear Quotemonster users,

We are pleased to confirm that the following rate changes are live on Quotemonster effective 1 December 2024.

• Southern Cross Wellbeing One and Two (no changes were made to the GP and Prescriptions or Dental and Optical Options)

If you have any questions or comments on these changes please reach out to us on info@quotemonster.co.nz

Happy Crunching!

Southern Cross creates new role to oversee hospital network

Southern Cross Healthcare has announced Roger Cronin as the new chief operating officer responsible for the organisation’s 10 wholly owned hospitals. The new role’s focus is on overseeing the operational performance of the hospitals and acting as a strategic link between the hospitals and the national support office.

Cronin was recently CEO of PresMed Australia, a private healthcare provider specialising in surgical day-stay procedures for ophthalmology and ENT patients. Cronin has held a variety of leadership roles in major public hospitals and has worked with the New South Wales Ministry of Health. Cronin will commence his new role in late November.

More news:

Westpac campaign highlights dangers of impulse buying and debt accumulation

mySolutions webinar 'Panel Discussion' 4 December

The IFSO Scheme welcomes changes introduced by the Contracts of Insurance Act 2024

Government announces funding for 50 new senior doctors, plus nurses and other health professionals

The RBNZ has cut the Official Cash Rate, taking it from 4.75% to 4.25%

FSCL reminds advisers policies need to continue to meet client needs

The Financial Services Complaints Ltd (FSCL) has stated that advisers must ensure insurance policies continue to meet the needs of each client, each time it is renewed. This comes in the wake of a complaint where a customer paid out $37,000 in funeral insurance over the course of 17 years, for a policy that had a maximum payout of $10,000. The customer raised a complaint with the insurer and the FSCL and following a dispute process the customer was paid out compensation.

 More news:

Southern Cross Health Society Annual General Meeting is on 4 December

Financial Advice NZ End of Year Celebration Canterbury Community of Practice 5 Dec

FSC Life Insurance Special Interest Group Networking Event 10 December

FSC Outlook 2025 is on 4 February 2025

The 2025 Women in Insurance Summit NZ is on 25 February 2025

FSC’s Regulatory Forecast for November, available to FSC members here

Early KiwiSaver withdrawals during October ticked over $200 million for the first month ever

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

Susan Taylor says a fresh solution to liability gaps needed

Southern Cross covers cochlear implants

Southern Cross Health Insurance (SCHI) has become the first New Zealand insurer to cover cochlear implant surgery for eligible adult members. SCHI will cover one internal cochlear implant (excluding the external sound processor) for members who meet specific criteria which include:

·         being at least 18 years old

·         having severe to profound sensorineural hearing loss in one ear

·         having moderate or worse hearing loss in the other ear

·         having a hearing aid fitted for the ear scheduled for the implant

Those an audiologist deems likely to develop this level of hearing loss within 24 months may also qualify.

More news:

Fidelity Life release average turnaround times for September 2024

Fidelity Life share key takeaways from customer engagement forum

Westpac and nib called out for poor customer satisfaction scores at the Consumer NZ Yeah, Nah awards

NZFSG launch ‘MyInduction’ Programme

FSC webinar 'Connecting with Kiwis: Strategies for reaching New Zealand's diverse consumer groups' 28 November

mySolutions webinar 'Premium structures' 30 October

TAP launch myTAPapp

The Co-operative Bank is a finalist in the 2024 LearnX Awards

AMP webinar 'Financially Independent Kids: Plan Today, Protect Tomorrow with Hannah McQueen' 24 October 12:30pm

What does a business version of the healthy futures report mean?

We took a look at Southern Cross’s business edition of the 2024 Healthy Futures Report, which focuses on employee health and wellbeing. There are clear links between wealth and health, as the old saying has it. Whether one causes the other and in which direction the arrow of causality points is unexplored. We think it’s probably more complicated than this simple pairing of factors, although if someone becomes wealthy, they often become healthier. Likewise, if someone has the misfortune to become chronically ill, they usually get poorer. But these two are probably joined by other factors which may also have some power to affect outcomes – like education while young, health while a child, and current environment.

What employers can do to help is limited – but is appreciated by staff. At Quality Product Research Limited we offer seven of the eleven key suggestions made (soon to be expanded to eight) – we like that we can do that – but people use or do not use them pretty much as they please.

Key takeaways for us from the survey results:

• 89% of respondents said it was important to them to work for a company that supports the health and wellbeing of their staff.

• 55% of respondents’ employers were doing well in supporting their employees.

• The top ten initiatives employers could invest in were wellbeing leave (36%), lunch or break room (29%), flu vaccinations (26%), healthy food options (25%), activities promoting good mental health (23%), workplace massage (23%), Employee Assistance Programme (22%), health assessments (21%), subsidised membership to off-site facilities (21%) and stress management programmes (20%).

• 88% of employees think having a good work-life balance is important, with a third considering taking steps to improve their work-life balance.

• Making use of flexible working hours (43%) and switching off from work when finished for the day (43%) were the most common means of managing work-life balance. Conversely, having a high work load (60%), financial pressures (40%) and not having flexible working hours (40%) were cited as most commonly as reasons for poor work-life balance.

• 51% of workplaces offer flexible working arrangements, down from 54% in 2022; 60% of employees make use of flexible working hours most weeks and an additional 26% utilise it sometimes.

• Only 45% of kiwis rate themselves as happy with their financial situation; 91% cite cost of living as one of their top concerns and 58% worry about not having enough money to support themselves or their families.

• 84% of New Zealanders are concerned about not having good, affordable access to healthcare, up 8% from 2022.

• Kiwis don’t feel they are getting enough sleep (60%) or exercise (62%).

• New Zealanders without health insurance were more likely to be less happy with their health, financial situation, mental wellbeing, fitness levels, weight of themselves and their children, exercised less on average and were more likely to be stressed.

Southern Cross highlight a series of initiatives workplaces could take to improve employee wellbeing, including:

• offering education on stress management and financial management;

• offering free fruit or healthy food in breakrooms;

• encouraging employees to make use of flexible working if it’s offered;

• offering health assessments;

• educating employees on the importance of flu vaccinations;

• offer opportunities for physical exercise, through work place team sports, sports day or subsidies for gyms or exercise equipment;

• encouraging employees to take their annual leave;

• training leaders to identify those at risk of burn-out;

• offering wellbeing leave;

• providing employee assistance programmes and educating employees on what it is and hot to use it;

• offering subsidised health insurance.

1,463 employees were surveyed for this report in March 2024.

More news:

Changes to Partners Life’s My Underwriting Manager platform

Jon-Paul Hale talks about CPI & income protection claims

Resonate 2024: Navigating Innovation event 7 November

Amanda Bridge has joined Apex Advice as Adviser Manager

NZ banks begin rollout of the confirmation of payments service from November 2024

Centrix’s latest ‘Credit Indicator Report' finds 461,000 people are behind on their payments

The Monetary Policy Committee cut the Official Cash Rate to 4.75%

BNZ has launched a new security feature aimed at combating online scams

October is International Breast Cancer Awareness Month

Southern Cross has new Chief Communications & Brand Officer

Tony Reid has joined Southern Cross as its new chief communications & brand officer. Reid started the role in September and his remit is to enhance the organisation’s communications strategy and brand presence across health insurance and healthcare services. Reid has previously held leadership positions at Kiwibank, Suncorp New Zealand and the Financial Markets Authority.

More news:

Advisers can update client contact details through a new self-service request form in AIAHub

RiskInfoNZ poll finds 60% agree that life insurance is too expensive for the average Kiwi

Health NZ’s Mental Health and Addiction Workforce Plan increases training places for mental health and addiction professionals

Southern Cross Health Society Group annual results released

Southern Medical Care Society Group has shared their annual results for the year ended 30 June 2024. By the numbers:

• Group deficit of $88.2 million after tax. $43.1 million of the deficit is attributable to a change in international financial reporting standards introduced this financial year. The balance of the deficit is driven by higher claims costs from a high inflationary environment combined with high member demand for private health services, particularly in the second half of the financial year.

• Group reserves of $470.7 million.

• Claims paid at a rate of $6 million per business day (up from $5.2 million in FY23).

• 15,196 net new members, with total membership now at 955,301.

• This represents 60% of the New Zealand health insurance market by customer numbers but 71% per cent of the value of all health insurance claims paid.

• 99% of claims were submitted electronically.

Southern Cross Health Insurance

• Reported a deficit of $99.1 million.

• Paid $1.498 billion in claims from $1.605 billion received in premiums.

• Claims costs increased 15% on FY23 (up 13.9% when adjusted for member growth).

• Premiums increased 9% on FY23 (up 6.6% when adjusted for member growth).

• 93.4 cents paid in claims from every dollar received in premiums (compared to an industry average excluding Southern Cross) of 73 cents.

• Operating costs grew by 4%, less than inflation.

• 3.2 million claims in FY24

• 50% of members claimed over the financial year.

• 39,326 virtual GP consultations with Care HQ.

• 4,635 annual health check-ups with MedPro.

• 4,016 online mental health sessions with Raise.

• Net promoter score of 53.7%.

 Nick Astwick, Chief Executive for Southern Cross Health Society said

“We have never been in more demand by our members as they prioritise their health needs, largely in the private system. In 2019 33% of our membership claimed, last year it was 50%.”

“The cost of claims in 2024 was steep and rapid, driven by a combination of price, volume, and the mix of claims. The growth in the volume of claims results from an increase in the number of members claiming, the frequency, and claims being made for more expensive procedures.”

More news:

Asteron Life announce MDRT Grant Programme recipients

NZFSG named as one of the Most Innovative Insurance Companies

Fidelity Life working to implement a data governance strategy

ANZ add BlinkPay to their approved third party payment providers

2024 Haven award winners announced

Committee recommended changes to the Contracts of Insurance Bill

Travis Hamilton says Total and permanent disability (TPD) cover is being underestimated

Jon-Paul Hale suggests ways insurers can improve systems for advisers

Tony Vidler recommends how advisers can value themselves appropriately

The Government has completed a cost-benefit analysis for potential third medical school

Wayne Langford appointed to the Board of the Mental Health and Wellbeing Commission