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.
Chubb Life increase their Lifetime Reward discount and enhance commission offering
Chubb Life have increased their current 10% Lifetime Reward discount to 15% for all new business issued from 16 April to 30 June 2024.
Chubb Life have increased their current 10% Lifetime Reward discount to 15% for all new business issued from 16 April to 30 June 2024. The discount is available on Life and Trauma covers on Chubb Life’s Assurance Extra and Assurance Extra Business policies for customers who have a BMI measurement of between 18.5 and 24.9 and who have been a non-smoker for at least 12 months. Clients can combine this offer with the current 2 months’ free and multi-benefit discount offers.
Chubb have updated their scenario videos to help you explain how different customers can make the most of the offers.
From 30 April, Chubb Life are increasing their pendulum commission offering for new business, providing an up-front component when you choose either the 15%, 20% or 30% renewal option. They will pay renewal commission from Month 2. Chubb Life have also increased their Disability Income upfront rate and pendulum options.
More daily news:
nib Group's Brendan Mills talks about the challenges in migrating to the cloud
Steve Wright gives his views on statements of advice
Financial Advice NZ webinar 'When Clients Claim' 1 May
Jon-Paul Hale talks through the problem of digital document insecurity
The Finance and Mortgage Advisers Association of New Zealand (FAMNZ) opens up membership
The FSC release report on insights and trends in healthcare
The Financial Services Council (FSC) have released their Insights and Trends report “Health trends: Accessible and affordable healthcare”.
The Financial Services Council (FSC) have released their Insights and Trends report “Health trends: Accessible and affordable healthcare”. Some key insights and trends include:
A looming social healthcare crisis, as aging populations live longer, but not healthier. As life expectancy lengthens, there needs to be a global focus on increasing health span, the time that people live in good health.
Kiwis with health insurance has increased by 1.2%, to 1.45 million in 2023.
37% of kiwis reported having health insurance in 2023, up from 32% in 2022.
Mental health is the most concerning health issue, especially for younger generations (with 42% of 18-28 year old respondents and 39% of 29-43 year old respondents highlighting it as their main concern).
The top reason for taking out health or medical insurance was peace of mind, followed by reducing stress if myself/my family were going through a difficult time and it seeming like a financially responsible thing to do.
The main reason given for cancelling health cover was cost of living pressures meaning people can no longer afford it (55%).
More daily news:
Russell Hutchinson discusses assessing clients' financial needs for their entire lifetime
Financial Advice NZ to hold regional town hall meetings in April and May, with members in those regions to be contacted directly
Bill could modernise insurance law
On March 21st, a Member’s Bill was drawn that, if passed, could modernise insurance law. Labour Party MP Duncan Webb, a former insurance lawyer, says his Insurance Contracts Bill will require “…insurance contract terms to be both clear and fair”.
If the Bill is passed, it would introduce penalties for insurers who failed to act in good faith, such as not completing a claim in a timely manner. The Bill requires polices be clearer and in plain language, to better help consumers understand the terms of the insurance they’re signing up for.
We’ll keep an eye on this and report back as the situation progresses.
More daily news:
Clive Fernandes talks about Generative and Customer-Facing AI impact on financial advisers
Steve Wright talks about how advisers need to be wary of the Dunning Kruger effect
Jeff Royle says banks have been slow to disclose to customers about clawbacks
The Financial Services Council has launched Empower Women
TSB receive three Canstar awards for their credit cards
Jon-Paul Hale talks of how identity fraud and paper document security concerns are on the rise
Gallagher Bassett publish annual insurer survey report The Carrier Perspective: 2024 Claims Insights
Chubb Life has partnered with Kiwi charity Keep New Zealand Beautiful
The latest ANZ Business Outlook Survey shows business confidence levels fell 12 points
Survey finds 44% of insurance advisers in Australia are charging clients for advice
Southern Cross cautioned by FMA for neglecting to apply advertised discounts
The Financial Markets Authority (FMA) has issued warnings to Southern Cross Medical Care Society and Southern Cross pet Insurance for failing to apply advertised discounts to their insurance products.
Both entities have accepted they had breached the fair dealing provisions of the Financial Markets Conduct Act by making false or misleading representations. The FMA determined the cause of each issue was due to poor controls and/or technical errors. The FMA found no evidence of deliberate misconduct.
Southern Cross Pet Insurance initially reported to the FMA in November 2022 some of the contraventions. Further enquiries from the FMA and an internal review in the wider Southern Cross Group established the extant of the contraventions.
SCPI failed to correctly apply the following discounts:
· Additional pet discount
· Direct debit discount
· Southern Cross membership discount.
SCMCS failed to correctly apply the following discounts:
· Free child discount
· Healthy lifestyle rewards discount
· Low claims discount.
The total amount of Southern Cross Pet Insurance premiums overcharged was $424,508, affecting 7,542 customers. Southern Cross Medical Care Society overcharged $161,547 across 1,957 customers.
More daily news:
Changes to Chubb’s eApp requirement for non-residents to provide a copy of their visa
The Insurance Council to reveal the number of complaints lodged against individual companies
Kevin Smee suggests health insurance premiums should be tax deductible
Tony Vidler spells out the risks of marketing a service as 'free'
FAMNZ will be taking membership applications from next month
In 2023, four out of five New Zealand businesses embraced flexible working hours
Commerce Commission says mortgage advisers at risk of being ‘unduly influenced’ by commissions
Controversy has arisen based on the back of some comments John Small, Commerce Commission chair has made around the mortgage advice sector, on the back of the Commerce Commission releasing a draft report from the market study on the banking sector that has recently been released.
Controversy has arisen based on the back of some comments John Small, Commerce Commission chair has made around the mortgage advice sector, on the back of the Commerce Commission releasing a draft report from the market study on the banking sector that has recently been released.
Small told journalists that he’s ‘not sure if you went to a mortgage broker that they would tell you’ about how they only work with certain banks and the different commissions advisers can receive, stating,
“From the broker's point of view, they will get different amounts of money from different banks. I'm not sure when you go to a mortgage broker that they would declare that to you.”
There has been a lot of feedback from mortgage advisers on the article posted on Good Returns, qualifying that they both state which banks they work with and the fees they receive from each bank in their disclosure statements all clients receive.
We study disclosure documents and note that they are all good at disclosing the range of lenders that the mortgage adviser offers to clients. The information is in the public disclosure document and is clear. The range that most mortgage advisers have access to through their aggregator is usually extensive as well - they are subject to commercial pressures and operate under strong incentives to ensure that they have relationships with at least the main lenders. Most have longer lists. Although we cannot access robust statistical information on disclosure on specific fees and commissions once a preferred lender is established, we note that there is clear guidance on how to make effective commission disclosure. So it would be interesting to hear more details on the experiences are leading the Commerce Commission to this viewpoint. On the other hand, the comments about AML/CFT limiting access to even basic banking services ring true to many of us in the sector.
More daily news:
Financial Advice NZ central branch meeting 26 March, Palmerston North
Fidelity Life and Kaplan Professional join together to deliver Career Connect training
Fidelity Life has partnered with Kaplan Professional to deliver their Career Connect financial adviser training programme. Kaplan Professional will join as the programme’s education provider, in conjunction with Massey University.
Fidelity Life has partnered with Kaplan Professional to deliver their Career Connect financial adviser training programme. Kaplan Professional will join as the programme’s education provider, in conjunction with Massey University. Kaplan Professional will fund a new Women in Finance Scholarship, to join Fidelity Life’s existing six scholarships.
Applications are open for Career Connect’s 2024 intake, with 30 places, including 7 scholarships, available. The programme runs from May until December 2024.
The scholarships available are:
Women in Finance scholarship brought to you by Kaplan Professional, designed to assist female applicants to become financial advisers
Rural scholarship brought to you by FMG, designed for applicants with a rural connection
Pounamu scholarship, designed to assist Māori applicants
Kōwhai scholarship, designed to assist Pasifika applicants
Rāngi Po scholarship, designed to support underrepresented identities in our industry.
Toe Toe scholarship, designed to recognise outstanding young applicants.
Pāua scholarship, designed to recognise outstanding applicants who demonstrate excellence.
Kaplan Professional CEO Brian Knight said
“Programs like Career connect provide the ideal launchpad for a bright future in financial advice, so we are delighted to collaborate with Fidelity Life on what we believe is a terrific initiative to strengthen New Zealand’s talent pipeline.”
“We also remain steadfast in our commitment to encouraging and promoting diversity within the industry, so we are thrilled to be able to provide a scholarship for women in every intake of the program.”
There is a free online career evening on March 19 where those interested can find out more about becoming a financial adviser, what being a financial adviser is really like and how Career Connect can support you to gain the qualifications and skills necessary to become a successful financial adviser.
More daily news:
Westpac introduces the LanguageLoop interpreting service
ANZ discloses slight improvement in its gender pay gap for 2023
Survey finds 62% of kiwis feel KiwiSaver contributions should be compulsory
The Co-operative bank is hosting a webinar on 12 March about proposed governance changes
The New Zealand Health Survey found roughly a million New Zealanders missing out on seeing their GP
New campaign tries to lure NZ health workers to Australia
Kordia study highlights toll cyberattacks take on New Zealand's large businesses
The role of financial advice in New Zealand
Take a look at the consumer case study and adviser case study videos Fidelity Life have produced to get another perspective on how kiwis view the financial advice industry.
We wrote about Fidelity Life’s Advice for good: Rethinking New Zealand’s relationship with financial advice report, here. Take a look at the consumer case study and adviser case study videos they have produced to get another perspective on how kiwis view the financial advice industry.
We’d love to hear your ideas on how to help shift the public’s perception of our industry and convey the value we offer.
More daily news:
Rob Flannagan will extend his term as independent Chair of the FSC Board
Unimed looking for Chief Corporate Services Officer and Chief Risk Officer
Andrew Bayly says government are reviewing a number of pieces of financial markets legislation
mySolutions webinar 'Commercial Insurances - What do FAPs need to know?' 9am 13 March
Kiwis unsure of whether annual general health screening is necessary
Research by nib new Zealand has found that 47% of New Zealanders are behind on their general health checks.
Research by nib New Zealand has found that 47% of New Zealanders are behind on their general health checks. Worryingly, some people had never received important health screenings like dental checks (63%) and eye checks (55%). Despite New Zealand having one of the highest rates of melanoma in the world, 84% of kiwis surveyed were either not up to date with or had never received a skin check. Low rates of participation in national screening programs were also seen, with 60% behind on prostate cancer checks, 44% behind on cervical smears, 37% behind on bowel cancer screenings and 28% behind on breast cancer screenings. 43% of parents weren’t clear what health checks are appropriate for their children.
The biggest barriers to getting screened were uncertainty about which screening checks they need (38%), cost (36%), not experiencing any current health issues of concern (30%) and being anxious about what it could reveal (19%).
Despite the high numbers of respondents who were behind on proactive health screenings, 62% considered their health to be good, very good or excellent.
Rob Hennin, nib Chief Executive said
“At nib we believe that taking a proactive approach to your health is critical to achieving better health outcomes and, in turn, living healthier and happier lives.”
“Our survey found that six in ten people were worried about their future health prospects, so there’s a clear disconnect between Kiwi’s perceptions of their own health and their willingness to address it. Health screenings are the key to catching potential illnesses early, which means you can get treatment, begin recovery, and return to normal life faster.”
nib are offering free general health checks to the Kiwi public with its Check-Up clinic stationed at Blues home games at Eden Park and around Auckland city. Locations can be found on nib New Zealand social channels.
The survey was conducted in December 2023 and questioned 1,000 people.
More daily news:
Clive Fernandes talks about AI's impact on financial advice
Jon-Paul Hale talks about the implications of passbacks and policy swaps
Expressions of interest open for Partners Life new adviser training course
nib Ultimate Health plans will cover many pre-existing conditions
nib Life and Living Insurance has $200 off
Entries for Insurance Business' Top Insurance Employers are open
AIA make AML document requirements easier
AIA health enhancements webinar 14 March
AIA put together resources for The Big Heart Appeal
Westpac Smarts webinar 28 March 'Attracting and Retaining Good Employees'
Fidelity Life report digs into the role of financial advice in New Zealand
Fidelity Life’s ‘Advice for good: Rethinking New Zealand’s relationship with financial advice’ report highlights some worrying findings in New Zealander’s feelings towards their financial situation.
Fidelity Life’s ‘Advice for good: Rethinking New Zealand’s relationship with financial advice’ report highlights some worrying findings in New Zealander’s feelings towards their financial situation. The report found that:
28% of kiwis feel their financial situation is out of their control.
47% of kiwis often or always worry about money, and 53% of under-35s saying they always worry about money.
The majority of New Zealanders don’t feel confident making financial decisions until after age 55 – once this age is reached 63% feel confident in their money decisions.
Only 28% of women feel confident about their financial outlook, compared to 44% of men.
While 88% of kiwis agree financial advisers are the most trustworthy source of financial information, only 22% have consulted one – though 36% have sought help from family.
Many New Zealanders don’t know where to get trusted financial advice, with 41% of those under-35 unable to say where to find good advice.
There are different emotions towards money depending on ethnicity, with 30% of Māori and 38% of Middle Eastern, Latin American and African (MELAA) respondents said their financial situation made them feel overwhelmed. Meanwhile, 27% of Pacific Islanders were ashamed, and 58% viewed their financial situation negatively overall. 74% of Pacific Islanders, 59% of Asians and 56% of Māori respondents feel unconfident or unsure making financial decisions.
There was some good news about New Zealanders’ finances too.
88% of New Zealanders feel like they typically have enough to pay the bills.
34% feel financially comfortable, especially older New Zealanders – with 81% of those aged 65+ feeling positive about their financial situation.
Attitudes towards the future seem to be optimistic, with 41% feeling their financial situation will improve in the next 12 months, compared to 28% expecting things to worsen.
Kiwis are generally focusing on short-term horizons, with 89% of people prioritising day to day spending, 65% focusing on saving and 57% concentrating on paying off debt. Only 13% put growing their wealth and 4% put protecting their finances as their highest priority. 34% of those surveyed didn’t have any form of insurance and only 11% had consulted an insurance adviser.
This short-term focus is highlighted again with only 3% of those under 35 mentioning setting themselves up for a comfortable retirement as an aspiration, with home ownership being the number one goal in this age bracket. While retirement seems a long way away when young, only 23% of those in the 55+ age group mentioned a comfortable retirement as one of their aspirations, despite being less than a decade away from receiving the pension. 79% of those surveyed had KiwiSaver, 30% have stocks and shares and 17% have managed funds.
There seems to be a lack of understanding of the benefits financial advice can bring to people at all ages and stages of life. 31% of respondents said they don’t see the relevance of professional advice, and 10% listed being embarrassed or scared or consider their financial position to be private as a barrier to seeking advice. Only 5% of people stated they don’t know how to/who to talk to as a reason. Part of the lack of understanding on the benefits on advice might be due to a lack of familiarity on the role advisers perform, with only 13% being able to describe it with any confidence. Borrowing money was the most common catalyst for seeking out advice (48%) compared to 36% looking to invest to grow wealth. Just 28% have sought advice on products like income protection insurance or mortgage insurance. For those who consulted a professional financial adviser, 81% said getting financial advice provided peace of mind and 70% said it helped them achieve their goals.
Campbell Mitchell, Chief Executive of Fidelity Life said
“…the evidence shows most New Zealanders aren’t seeking financial help, either through regular financial health checks or at key life stages, until they’re nearing retirement – when it may be too late,”
“As a result of seeking amateur advice, we get stuck in the same old ways of doing things and can’t see a way forward – especially when the people we most often turn to for advice, our parents, have experienced different conditions. Baby Boomers who have achieved financial success via the traditional route of buying a home and an investment property may consider themselves financially savvy without taking into account the fact they’ve lived through one of the greatest property booms in our history, and that as the world changes, a different approach might work better today”.
The report was commissioned to explore attitudes towards financial advice and how to overcome the barriers to seeking professional guidance. The report surveyed more than 1,100 New Zealander’s aged 18 – 69, representative across age, gender, ethnicity and income level and consisted of a mix of quantitative and qualitative interviews.
More daily news:
mySolutions webinar 9am 6 March 'Lessons and experiences from FMA monitoring visit'
Survey finds NZers want stricter penalties for companies suffering cyber breaches
FSC CEO resigns
Richard Klipin has announced his resignation as CEO of the Financial Services Council of NZ (FSC).
Richard Klipin has announced his resignation as CEO of the Financial Services Council of NZ (FSC).
Klipin has led the FSC for the past seven years and he will remain in the role whilst the Board starts the search process to find a replacement.
Rob Flannagan, Chair of the FSC, says
“Under Richard’s leadership over the past seven years we’ve developed from a small organisation of 29 members to one that is now has 119, and living its purpose as the clear voice of the financial services sector and growing the financial confidence and wellbeing of New Zealanders.
Richard has led this renewal in vision, strategy and purpose; and his strength as a community builder is evidenced by the active involvement of over 540 members across the many FSC Commitees, forums and working groups.
Richard is leaving the FSC in great shape, with a new strategic plan and a ‘Blueprint for Growth’ policy platform that unites the sector, and has support and backing from government and regulators.”
More daily news:
Fidelity life to launch improved e-App
46% of new Chubb Life customers have received the 10% Lifetime Reward discount
Chubb Adviser Resources Site has had a refresh
Women in Insurance Summit 2024 in Auckland on 27 February
UniMed partners with Snap Fitness 24/7 to give members a free gym trial
Nick Hakes reflects on the financial advice industry in Asia-Pacific
FSC webinar 'Will big data & AI change everything?' 27 February
The IFSO Scheme will partner with Banqer
FSC's CEO Richard Klipin to speak at FinTechNZ's Hui Taumata
The Reserve Bank is in the early stages of planning for the next five-year funding agreement
KiwiSaver providers sceptical potential changes KiwiSaver scheme will benefit members
Southern Cross Healthcare appoints Dr Erica Whineray Kelly as Chief Medical Officer
Te Ara Ahunga Ora Retirement Commission says political parties need to reach cross-party agreement