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.
nib looks to improve services to Māori
nib is looking to improve services to Māori communities by learning from indigenous health providers in other countries.
nib is looking to improve services to Māori communities by learning from indigenous health providers in other countries. Leadership from nib and Iwi partners involved in the Toi Ora project have recently returned from a study tour to Canada. Those involved met with Canada’s First Nations Health Authority, Pacific Blue Cross, First Nations Tax Commission (FNTC) and Squamish Nation to get insights into how these organisations deliver services to First Nations people in Canada and how these lessons could be applied in New Zealand.
Sarah McBride, nib NZ’s Head of Iwi Initiatives, said learnings included better ways to use existing funding, the importance of using health-related statistics and relevant previous cases to support new projects, and co-creation with local partners.
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Financial Advice NZ publish Budget 2024 Summary - Adviser to Client Resource
Entries open for Insurance Business’ 5-Star Insurance Innovators awards
MAS is looking for a Head of Private Wealth
Budget 2024 includes new health investments
Professor Lester Levy has been appointed as a member and Chair of the Board of Health New Zealand
Asteron Life appoints new Chief Underwriter
Kathie Tutty has been named the new Chief Underwriter at Asteron Life.
Kathie Tutty has been named the new Chief Underwriter at Asteron Life. Tutty is currently the Underwriting Manager and Principal Underwriter at Asteron Life and will start her new role on May 31.
Grant Willis, Executive General Manager Life, said
“Kathie’s promotion to the role of chief underwriter and member of the life leadership team recognises her passion and ambition for our business and her desire to take our underwriting performance and strategy to the next level.”
More daily news:
Bronwyn Kirwan interviews Niall McConville, Fidelity Life's new Chief Insurance Officer
MAS reaches $2.5b investment funds under management
The Monetary Policy Committee keep the Official Cash Rate at 5.50%
Contracts of Insurance Bill
Commerce and Consumer Affairs Minister Andrew Bayly talks about his three focus points; ombudsman welcomes changes; and where to find more information on how the Bill could affect you.
Commerce and Consumer Affairs Minister Andrew Bayly has said that insurance law reforms are “long overdue”, with some laws over 100 years old. Bayly has said his three focus points for the new Contracts of Insurance Bill are to make it easier for consumers to get insurance, for consumers to better understand what they’ve signed up for and for consumers to get paid out more quickly. Bayly has said the government intend to pass the Bill before the end of 2024.
“… Many consumers don’t understand what information they are supposed to tell their insurer, and the consequences if they don’t disclose this information.
Forgetting to tell the insurer something regarded as being material to the risk of providing a consumer with insurance (i.e. whether the insurer would have provided cover or not, and on what terms) can be fatal.
I’m pleased that this law change will require insurers to ask clear and relevant questions, making it easier for consumers to know what information they have to provide.”
Submissions on the Bill are open until 3 June 2024. The Financial Services Council (FSC) is urging members to feedback and has circulated an industry submission process document.
We think that all the questions adviser-focused insurers ask are clear and relevant and that in a full underwriting environment it is clear to customers what they should be disclosing. But this is not the full scope of the changes that the law will bring in. Bell Gully’s comment covers this well:
“Most submitters welcomed the overall approach taken in the exposure draft, which proposed to consolidate, modernise and clarify a number of outdated statutes into one primary statute governing insurance policies generally, as well as the specific relationship between insurers and their customers. The Bill also proposed to bring about significant changes in the law of insurance in New Zealand – particularly relating to the duty of disclosure owed by insureds, the duty of utmost good faith, the remedies available to a party who has a claim against an insolvent insured, and the application of the unfair contract terms regime to insurance policies. The details of some of these substantive changes were met with resistance, including in our submission, primarily due to concerns that the reforms may create significant uncertainty for both insureds and insurers.”
For more details on the content of the Bill, we suggest that you check out their summary here. Steve Wright also outlines seven potential changes facing advisers and insurers here.
Fidelity Life offers new customers 3 months' premium-free
Fidelity Life is offering new customers their first 3 months’ premiums free.
Fidelity Life is offering new customers their first 3 months’ premiums free. The offer applies to all eligible Platinum Plus, Platinum Plus Level Term, Mortgage Protector and NZHL Life policies that are:
illustrated between 1 May until 31 August 2024 and
applications are submitted within 30 days of the illustrations being generated and
a policy is issued within the 6 months of the offer period end date.
More daily news:
nib publish their top five medical claims
New Zealand Underwriting Agencies Council Expo 23 May
The Co-operative Bank win Consumer People's Choice Award
BNZ's net profit after tax for the six months to March 31 was $762 million
FSC reports 70% of Kiwis now frequently worry about their finances, the highest level since 2020
Gallagher Bassett’s 2024 Claims Insights
Gallagher Bassett surveyed 150 businesses across North America, United Kingdom, Australia and New Zealand to find out the biggest challenges and considerations for those in the insurance industry.
Gallagher Bassett surveyed 150 businesses across North America, United Kingdom, Australia and New Zealand to find out the biggest challenges and considerations for those in the insurance industry.
Gallagher Bassett say last year key business challenges were premium affordability (29%), market competition (22%) and keeping up with technology (20%).
Gallagher Bassett suggest that to gain advantages, carriers need to implement strategies that leverage external expertise, data-driven insights and generative AI.
Some other key findings include:
· 84% of global respondents emphasised offering competitive salaries to retain employees.
· 75% predict the biggest challenge in the compliance and regulation area will be around data privacy and security.
· 86% use climate data and analytics in risk assessments and underwriting processes.
· 67% of insurance carriers utilised generative AI chatbots in customer service.
· 95% of global carriers anticipate improved speeds and operational efficiency with AI integration.
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New surgical building in Auckland has opening delayed as it does not have required staff
Climate change and what it means for health and life insurance
The ‘Climate Change: What does the future hold for health and life insurance?’ report digs into the impact of climate on health and life insurance products and how availability, structure and pricing might be affected in future.
The Geneva Association and Wellcome have released ‘Climate Change: What does the future hold for health and life insurance?’ report. The report digs into the impact of climate on health and life insurance products and how availability, structure and pricing might be affected in future.
Estimates for those that live in climate-vulnerable locations across the world are approximately 3.3 – 3.6 billion people. Estimates for death directly attributable to climate change vary widely, from 250,000 to 3.4 million deaths annually.
While the short-term consequences for life and health insurers have so far been modest, the increasing frequency and severity of climate events may escalate the impact on insurers. Adverse health outcomes from climate change range from immediate to long-term and cover everything from injuries and fatalities resulting from extreme weather events to heat-related illnesses to disruption of ecosystems reducing crop yields and spreading vector-borne diseases to new regions. In addition, social unrest, displacement and economic hardship can all lead to negative health outcomes.
The report classifies climate-related risks into four categories:
Acute: risks that stem from the impacts of extreme heat, wildfires, floods and severe storms on mortality and morbidity.
Chronic: risks that emerge from prolonged exposure to adverse climate and environmental patterns.
Transitional: risks arising from transition to new technologies or climate transition policies.
Litigious: health-related legal challenges arising from the negative externalities of climate change.
The report calls out the lack of data that can be used to map climate events and patterns against incidences of mortality or morbidity and calls for insurers to resolve the actuarial gaps in understanding.
Those interviewed across 17 global health and life insurance companies agreed that prevention is key to preserving insurability – through things like underwriting that incentivises greener lifestyles and coordination on early warning systems.
“Most respondents do not perceive climate change as exerting any immediate impact on the liabilities associated with H&L insurance, nor do they anticipate short-term consequences for insurability and affordability. Nevertheless, there is consensus that this could change over the long term, although the level of impact may be tempered by multiple factors.”
The report has three key recommendations for insurers: assemble data prospectively to better understand areas of vulnerabilities; invest in innovation; play a bigger role in the policy environment and help strengthen public understanding.
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Tony Ryall has retired from the board of nib NZ and is being replaced by Hanne Janes
nib publish their top five health claims for January 2024
nib launch Competency Corner- product information
Rob Hennin talks about 2024 priorities for nib
Te Whatu Ora approves funding that will allow for 1,000 more PET-CT scans a year
Southern Cross Health Insurance appoints Cath Lomax to Chief People and Strategy Officer
Southern Cross Health Insurance has appointed Cath Lomax as its Chief People and Strategy Officer. Lomax joins from Fisher Funds, where she was the Chief Client Officer.
Nick Astwick, CEO of Southern Cross Health Insurance said
“As well as being in the business of health, we're also in the business of people – be it serving our members or our people. Cath brings to this role a wealth of experience which will undoubtedly allow us to build on our reputation for being a great employer.”
Lomax was recently awarded the Auckland Emerging Director Award from the Institute of Directors Auckland branch for her work at Surfing NZ.
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FMA proposes to run pilot on 'outcomes' style regulation with industry
Financial Advice NZ Masterclass - The psychology of financial planning on 4 March
Southern Cross Health Insurance appoints Cath Lomax to Chief People and Strategy Officer
Finance and Mortgage Advisers Association of New Zealand (FAMNZ) sets up in NZ
Australia’s Federal Government seeks feedback on the use of genetic test results by insurers
Australia’s Federal Government has opened consultation on the impacts of life insurers utilising genetic test results in underwriting.
Under the Insurance Contracts Act 1984 consumers have a responsibility to provide information requested by life insurers, including any genetic testing results. In 2018, a report by the Parliamentary Joint Committee on Corporations and Financial Services identified concerns that life insurers using genetic tests in underwriting was negatively impacting participation in health research projects involving genetic testing.
In 2019, Australia’s life insurance industry introduced a partial Moratorium on the requirement to disclose genetic testing results. Life insurers could only request or use the results of a genetic test if the total amount of cover a person has exceeded set thresholds. The Moratorium also stated that life insurers would not require or encourage applicants to take a genetic test as part of the application. The Moratorium was introduced due to concerns that people would not undergo genetic testing for personal health reasons or participate in medical research that involved genetic testing because they feared that it could negatively impact their ability to obtain affordable life insurance.
A report by researchers at Monash University investigating the impact of the Moratorium found it is discouraging consumers from participating in clinical genetic testing and in medical research which involves genetic testing. The report also found that life insurers were not complying with the Moratorium, and were asking applicants about genetic test results when the applications fell below the financial thresholds. The report also deemed the financial limits were too low. The report’s recommendations include the Government amending legislation to prohibit insurers from using genetic or genomic test results to discriminate between applicants for risk-rated insurance and that the Government consider ensuring insurers are subject to a positive duty to not discriminate. Consultation is open until 31 January 2024.
We spoke to Russell Hutchinson to get a New Zealand perspective on this issue:
Currently New Zealand has no legislated approach to genetic testing. There are similar consumer movements to that in Australia, which highlight the risks to consumers and their families when they delay obtaining genetic tests because they are concerned about the impact on their ability to obtain insurance coverage. A good synopsis of this from the medical viewpoint is given in this Radio New Zealand piece. It does not discuss the value of having a functioning insurance sector or examine how this relies on the ability to charge different premiums for different risks or in some cases, decline to insure a person. Naomi Ballantyne offers a succinct summary of an underwriter’s perspective in this article at Good Returns.
Occasionally, consumer fears may drive choices which are also damaging to the insurance market – for example, delaying a test to take out coverage and then lapsing the coverage if the test results show no increased likelihood of developing the condition. There may be value in offering some form of reassurance to consumers to limit the impact of genetic testing on insurance. Personally, right now, I would encourage anyone contemplating a genetic test to place their health first and obtain the test.
The Financial Services Council (FSC) regularly reviews its stance and industry guidelines on genetic testing to ensure they reflect best practice globally; they have reiterated that it is important insurers understand a customer's risk profile as part of the underwriting process.
"Some insurers may ask customers to disclose known information about the results of their genetic tests. This is consistent with asking customers other questions about their risk profile - for example, their family history.”
"Genetic testing is not something that any of our members ask their customers to carry out. Overall, FSC believes a fair position is one that balances the interests of consumers and the medical community to advance genetic science, and which manages financial risks to insurers and all policyholders."
Recently the FSC has held a discussion group with representatives from the insurance industry and the medical community to discuss the challenges that genetic testing present. A working group has been established to improve outcomes from genetic testing. Currently, RiskInfoNZ is running a poll to find out if people will see a time when genetic tests will play a part in clients applying for life insurance.
More daily news:
Gold Band Finance is the first non-bank deposit taker to get an FMA Financial Institution Licence
Proposed changes to the NZCFS Level 5 will be published on the Ringa Hora website early next year
Fidelity Life updates
Fidelity Life have been busy.
They have launched a live chat function for advisers to be able to interact with new business and underwriting teams.
Fidelity Life will launch product enhancements in November including
increasing maximum monthly benefit percentages from 110% to 115% of mortgage repayments;
new trigger to increase cover as a result of buying an investment property, holiday home, residential block of land, or co-signing a child’s mortgage;
new trigger for when financially supporting a child through first course of full-time tertiary education;
special events - removing the exclusion for customers with loading >100%
future events & insurability - removing the exclusion for customers with non-standard terms;
increasing the maximum monthly benefit for Key person new to business from $4,000 to $6,500 and for Key person for farmers from $5,000 to $9,000;
rolling out new repatriation benefit to all inforce and new on-sale life covers (except Survivor’s income cover), which reimburses up to the lesser of either 10% of the life cover sum insured or $20,000, helping to cover the cost of repatriating a body home;
changing our Trauma Stand-down start date to when the customer submits their completed application instead of when they finish underwriting.
In coming months Fidelity Life will publish turnaround times for new business and call centre interactions.
Fidelity Life are offering special relief to weather impacted customers in Queenstown, Gore and Southland who are facing financial hardship. They have offered a waiver of premiums for up to 3 months while keeping cover in place.
Fidelity Life will roll out annual product re-accreditation training models in November, mandatory for all advisers working with Fidelity Life customers
Fidelity Life have published a ‘Working together guide’
More daily news:
Russell Hutchinson talks about how advisers can help their clients in tough financial times
Jenny Ruth criticises Southern Cross for pulling out of planned interview
Mark Banicevich, Industry Engagement Manager at Partners Life, provides views on governance
Policyholders to vote on Accuro and Unimed merger at special meetings
Financial Advice NZ webinar 'How to best advise and manage forestry assets' 15 November
Cyber Smart Week runs from 30 October – 5 November
FinTechNZ Roundtable – Competition for Personal Banking Services on 27 November
AIA updates the benefits of its living products
AIA has released a raft of changes updating the benefits that apply to its living products covering critical conditions, progressive care, life cover, and family protection, including changes to selected closed Sovereign, TotalCareMax, AIA Trauma and AIA Life Cover products.
Some of the key changes, which are applicable to new claim events on or after 10 October 2023, include:
· The minimum coverage age for standalone children’s trauma has been lowered from two years to three months.
· Extension of the life buyback reinstatement period from 30 to 60 days.
· Removed the benefit for new business that pays on the diagnosis of medically or occupationally acquired HIV, and introduced a new benefit that pays on the diagnosis of advanced AIDS – regardless of transmission method.
· Changed the terminal illness definition to clarify that life expectancy is less than 12 months, despite all reasonable medical treatment.
· Increased bereavement support benefit from $15,000 to $25,000 in cases where there is joint policy ownership.
· Removed the 5% limit to pay up to $20,000 as an early payment if the life assured dies overseas to return their body to either New Zealand or their home country.
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Partners Life has updated its underwriting guide
Southern Cross new naming rights sponsor of Wellington Round the Bays
nib says insurance can help families navigate increasing mental health concerns
MAS appoints Matt Harvey as Chief Distribution and Marketing Officer and Craig Ward as Chief Innovation and Digital Officer
FSC webinar 'Leading Lawyers Australia' 31 October
Jon-Paul Hale believes some providers are asking advisers for too much
ACC fund slips from ‘responsible investment leaders’ to ‘responsible investors’
New AI tool diagnoses brain tumours on the operating table and helps surgeons decide how to operate