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.
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
Partners Life release claims statistics
Partners Life have released historical and current claims statistics.
Some interesting statistics have been released by Partners Life around claims. Since Partners Life launched in 2011:
Partners Life have paid out more than 70,000 claims worth more than $1.25 billion.
Their biggest monthly disability claim paid was for $1,617,691
The longest running claim paid for monthly disability cover was 4,068 days and the average claim length was 293 days
Partners Life paid 13,379 monthly disability cover claims totalling $225,954,755
Their biggest life cover claim paid was for $2,964,706
Partners Life paid 1422 life cover claims totalling $334,281,111
Partners Life paid 51,827 private medical cover claims totalling $353,468,683
Their biggest private medical cover claim paid was for $982,800
Partners Life paid 3,948 trauma cover claims totalling $357,357,574
Their biggest trauma cover claim paid was for $3,218,899
For the year ended 31 March 2024, Partners Life
paid 93% of claims
paid $51,020,381 of monthly disability cover claims cost across 3,332 claims paid
paid $61,130,350 of life cover claims across 208 claims paid
paid $71,705,905 of private medical cover claims across 12,891 claims paid
paid $66,106,600 of trauma cover claims across 655 claims paid
More daily news:
ASB looks for Chief Investment Officer
BNZ survey finds 87% of New Zealanders were targeted by scams in the past 12 months
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.
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
AIA release 'Claims Compass' report analysing claims data
AIA have released a new report ‘Claims Compass’ analysing their claims data. Cancer was responsible for AIA’s highest number of claims across all insurance categories last year.
AIA have released a new report ‘Claims Compass’ analysing their claims data. Cancer was responsible for AIA’s highest number of claims across all insurance categories last year, with AIA paying out $133.9m for life insurance claims for cancer and $244.1m for cancer claims across all categories. AIA’s top cancer claims in 2023 were breast cancer (33.4%), melanoma and skin cancers (20.3%), bowel cancer (6.5%), prostate cancer (6%) and lung cancer (4.6%). Cancer is the leading cause of death and serious illness in New Zealand, with 71 people diagnosed with cancer every day in New Zealand.
Angela Busby, AIA NZ Chief Customer Officer, said
“Almost every New Zealander will have some experience with cancer throughout their lifetime – whether that’s personally or through a friend, neighbour or loved one…”
“The prevalence of these cancers highlights the critical importance of regular screening and taking preventative measures to manage your health and encouraging loved ones to do the same.”
“Because while developing cancer might appear to be something that is beyond our control, we know that early detection is the best form of protection. Many cancers can be successfully treated if diagnosed early, with an estimated one in three people recovering in New Zealand.”
AIA accepted 92% of all claims for the year ended 31 December 2023, paying out $734.8m. Of the total paid, $263.5m was paid out in life insurance claims and $143.1m was paid in health claims. The image below shows the reasons for claims across AIA’s life, health, trauma, income protection and total permanent disablement categories.
Advicemonster – library of appendices
Advicemonster has a range of information available, to help you further strengthen your advice to clients.
Advicemonster has a range of information there to help you further strengthen your advice to clients – there’s appendices on everything from considering splitting benefits across different insurers to choosing between the different types of TPD cover.
If you want to find out more about Advicemonster or would like access to a free trial, talk to our team today.
AIA launches new AIA vitality app
AIA NZ has launched a new AIA Vitality app with enhanced features and functionality. The refreshed app has a new look and feel and boasts several new features.
AIA NZ has launched a new AIA Vitality app with enhanced features and functionality. The refreshed app has a new look and feel and boasts several new features:
· increased security via multi-factor authentication during the login process
· a new voucher wallet to view and access rewards
· a streamlined AIA Vitality Age Assessment
· new Financial Wellbeing Assessment.
AIA NZ Chief Customer Officer Angela Busby says
“Throughout the first five years of AIA Vitality, we have worked hard to continually enhance and develop the programme for our members. The new app will take this a step further, making it even easier to engage with the programme, track their health journey, and earn rewards.”
Russell Hutchinson, one of our directors and also an AIA Vitality member says:
“The new app is a big step forward in usability - simple things like showing you which surveys and activities you have completed and which you still have to go make it much easier to get a sense of where you are at from a points perspective. I was also pleased that as soon as I logged in, it pointed out that I’d earned a reward, and claiming it involved about half the clicks previously required!”
More daily news:
Financial Advice NZ urges advisers to take part in its industry survey
FSC webinar 'The future of total permanent disability insurance' 21 May
FAMNZ request apology from Commerce Commission chair John Small
Chubb Life's eApp now automatically identifies if customers qualify for 10% Lifetime Reward discount
Westpac and NZFSG recognised at the 2024 New Zealand Mortgage Awards
nib Little Legends $10K Relay is back in 2024
AIA will soon launch a six-part TV and podcast content series called The Upside
Fidelity Life makes three key appointments in its Sales and Service team
Fidelity Life has made three key appointments in its Sales and Service Team. David Winspear (left) has been appointed to take on the newly created role of Head of Channel Strategy and Michelle Doyle (middle) has been appointed as the new Head of Solutions, both of whom will report to Fidelity Life’s Chief Sales and Service Officer Bronwyn Kirwan. Kylie Oldham (right) has been appointed as Senior Group Insurance Business Manager, and will report to Fidelity Life’s Head of Group Insurance, Anita Los’e.
David’s role will be leading the design and delivery of Fidelity Life’s channel strategy, delivering sustainable growth across its advisers and strategic alliance partners.
Michelle will be accountable for Fidelity Life’s adviser channel solutions, professional development programmes and their in-house adviser team.
Kylie will be responsible for developing Fidelity Life’s group insurance portfolio and expanding its market presence with new propositions, technology, sustainable pricing and commercial terms.
More daily news:
Partners Life is introducing a TPD option with its trauma cover products
FSC looking for an Event Project Lead and Marketing and Events Coordinator
nib partner with Revolutionaries of Wellbeing
Expressions of interest for the Gallagher Talent Programme 2024 are now open
Kiwibank agrees to pay an $812,500 penalty after it overcharged customers bank fees
Kiwibank recognised as a Gold, Silver and Bronze winner in the 2023 Best Awards
Fidelity Life share insights from key speakers at Engage Conference
Partners Life: Total and Permanent Disability (TPD) within Trauma
Over the weekend, Partners Life announced a product change to their built in TPD cover within Trauma, for more information on this please click here.
Effective 6 October 2023, TPD will be an optional benefit within Trauma Cover Accelerated or Trauma Cover Standalone and premiums will change accordingly. This applies to both Partners Protection Plan (PPP) and Business Protection Plan (BPP) policies.
We have now updated Quotemonster to reflect this change as detailed below:
Partners Life quote software updates:
Opt TPD Benefit is ‘on’ by default, simply de-select the option when it is not required.
What you’ll see on Quotemonster:
TPD is ‘off’ by default and simply select ‘TPD Add-on’ to include pricing and research for this option.
If you have any questions or feedback on the changes above, please send us an email on info@quotemonster.co.nz
Happy Crunching!
FSC release Money & You: Young People and the Cost of Living report
The Financial Services Council (FSC) have released ‘Money & You: Young People and the Cost of Living’ report. The report found that Gen Z and millennials had lower levels of financial wellbeing, financial literacy and financial confidence than older respondents. Some of the key findings from the report include:
Mental health and wellbeing is the number one health concern for both Gen Z (78%) and millennials (52%), with nutrition coming in second place and oral/dental health coming in third place.
61% of Gen Z and 52% of millennials worry about money daily or weekly, compared to only 29% of baby boomers.
Buy now, pay later (BNPL) and personal loans are more likely to cause Gen Z and millennials issues than other age ranges.
Only 42% of Gen Z and 51% of millennials would be able to access $5,000 in a time of emergency without going into debt.
41% of Gen Z and 58% of millennials feel very or somewhat confident about planning for their retirement despite 74% of Gen Z and 61% of millennials not having calculated how much money they need in retirement. 45% are contributing the minimum 3% to their KiwiSaver.
52% of Gen Z and 72% of millennials feel very or somewhat confident about choosing an insurance policy. 28% have life insurance, 13% have income protection insurance, 31% have health insurance, 7% have total and permanent disablement insurance and 11% have trauma or critical illness insurance.
More daily news:
Tim Grafton has announced his intention to step down from his position of chief of ICNZ next year
ANZIIF has announced the list of finalists for the New Zealand Insurance Industry Awards.
This week is World Investor Week and NZ's theme is ethical investing
MinterEllisonRuddWatts share legal tips for FinTech start-ups
Wotton + Kearney release 2023 NZ Insurance Market Trends Update
Wotton + Kearney have released their 2023 NZ Insurance Market Trends Update. Of note, it includes updates on:
· increase in director accountability for ESG issues and climate-related financial disclosures;
· how organisations will need to consider how applicable tikanga values should inform their conduct when dealing with employment relationship issues;
· how organisations need rigorous processes in place for restructures and redundancies;
· extensions to Schedule 2 Occupational Diseases;
· changes to the regulation of medicines, medical devices and natural health products;
· the passing of the Therapeutic Products Bill 2023;
· cyber, privacy and data security.
More daily news:
Cost of living crisis is changing conversations advisers are having with clients
Katrina Shanks writes of the importance of quality financial advice
mySolutions webinar 'Are you maximising your marketing potential' 9am 27 September
27% of 4,120 claims received by IFSO were related to health, life and disability insurance
Lifetime webinar 'Your Homeownership Adventure Begins Here' 7pm 27 September
Man trying to claim pregnancy care on his health insurance policy has complaint turned down by IFSO
Alzheimer’s Society recommends regular exercise to cut dementia risk