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.
Southern Cross Healthcare integrate Te Ao Māori into operations
Southern Cross Healthcare is intensifying its efforts to incorporate Te Ao Māori principles.
Southern Cross Healthcare is intensifying its efforts to incorporate Te Ao Māori principles. Dean Cowles, nationa nursing advisor for Māori affairs is spearheading the effort to enhance Southern Cross staff’s understanding of and connection to Te Ao Māori. He says
“Our aim is to embed Te Ao Māori in all that we do at Southern Cross Healthcare. Our Te Ao Māori journey will strengthen our ability to improve Māori health outcomes and future-proof our Māori workforce.”
Initiatives include a Māori Navigation framework aimed at ensuring comprehensive and holistic care for Māori; setting up Hospital Hauora Māori Committees at local levels; rolling out Kaimahi roles across all locations; and conducting clinical tikanga workshops.
More daily news:
mySolutions webinar presented by Steve Maley, 9am 10 April
Financial Advice webinar 'Raising Awareness of the Value of Financial Advice' 10 April
The National Strategy for Financial Capability Partners Conference is on 8 & 9 May
Apex Advice are looking for a Data Specialist in Auckland
Katrina Shanks talks about the importance of mentoring in finance
Research points to the gender pay gap as the main cause for women contributing less to KiwiSaver
25% of roles at the Ministry of Health, about 180 jobs, proposed to be disestablished
Asteron Life updates personal and business insurance products
Asteron Life has unveiled a raft of updates to their personal and business insurance products.
Asteron Life has unveiled a raft of updates to their personal and business insurance products.
The changes include clarification of existing policy terms to ensure greater transparency and ease of understanding and a range of new and enhanced benefits.
The new benefits and enhancements include:
Repatriation benefit on personal and business life cover
Advancement benefit for terminal conditions on personal life cover
Shortened waiting periods for income protection and mortgage and living cover
Cover conversion benefit on business disability cover and farmers disability cover
Enhancements to the Funeral benefits on life cover, kids cover and business expenses
Enhancements to two definitions for trauma recovery and 11 definitions for major trauma
The requirement for 14 days total disability as part of the waiting period has been removed from business disability cover, farmers disability cover and business expenses cover
Introduction of a premium and cover suspension to the optional needlestick benefit
Removal of some restrictions from various benefits such as specific injury support – lump sum and monthly, trauma reinstatement option and the crisis benefit within the optional immediate assist package
Claire Sutton, Executive Manager Life Portfolio and New Business at Asteron Life said
“It's key that our range of covers continue to add value for our customers, policies and terms are easy to understand, and insurance remains as affordable and accessible as possible. We know that these things really matter for our customers and advisers. We also worked hard to ensure that these improvements have not increased customer premiums, given we know how tough it is for many New Zealanders right now.”
More daily news:
AIA extend one month’s premium free on qualifying new policies
mySolutions webinar 'Quotemonster Research' 9am 3 April
mySolutions roadshows are running in May
Partners Life sponsor Cheques and Balances podcast
Commerce Commission to meet with Financial Advice New Zealand after accused of being out of touch
Gail Costa talks about how the public need a better understanding of insurance
Gail Costa, chief executive of Chubb Life New Zealand, has spoken to Insurance Business Mag about how the public need to gain a better understanding of the industry during their schooling years to attract more people into the industry.
Gail Costa, chief executive of Chubb Life New Zealand, has spoken to Insurance Business Mag about how the public need to gain a better understanding of the industry during their schooling years to attract more people into the industry. Costa suggests that university courses should be offered around insurance. Costa said
“I’m sure that people don’t really understand insurance because we don’t teach it in school. We know from New Zealand being underinsured that there’s a financial literacy issue. Let’s talk about what the industry does and how it works.”
More daily news:
Toby Kelly named as the recipient of the 2023 ICNZ and ANZIIF Scholarship
The Westpac McDermott Miller Consumer Confidence Index rose 8.7 points in December to 88.9
The number of people hospitalised with Covid-19 and the average daily case count have jumped
Southern Cross hospitals are closed from Friday 22 December - Monday 15 January
A year in review
We look back at some of the big industry news, mergers, acquisitions, court cases and people changes in 2023.
2023 has been a difficult year for consumers and businesses alike. Conditions are similar to last year, with inflation remaining high, resulting in a continuing cost-of-living crisis, the OCR set at 5.5% and the RBNZ not ruling out a further hike next year, and housing prices only just starting to rise. How has that affected the insurance sector? Combined with an increase in regulatory red-tape tangling up banks, there has been a spike in lapse rates that very much looks like it is driven by the same forces.
NZ was badly affected by natural disasters this year, with insurers having to fork out $3.5 billion in general insurance claims for the Auckland Anniversary Weekend floods and Cyclone Gabrielle. Such heavy claims have impacted general insurers, perhaps part of the reason why Tower is looking to do a strategic review of its ownership structure.
It is this situation which greets the new National-Act-NZ First coalition government. They have outlined a 100-day plan that includes: stopping work on the Income Insurance Scheme; introducing legislation to narrow the Reserve Bank’s mandate to price stability (removing the mandate to ensure maximum sustainable employment); signing a memorandum of understanding with Waikato University to progress a third medical school; disestablishing the Māori Health Authority; taking the first steps to extend free breast cancer screening to those aged up to 74; repealing amendments to the Smokefree Environments and Regulated Products Act 1990 and regulations; and setting five major targets for the health system. National promised to roll back the Credit Contracts and Consumer Finance Act (CCCFA) and to make changes to allow kiwis to split their KiwiSaver savings between different providers during the election campaign, so we will be watching how this plays out next year. In August, then National Party Leader, Chris Luxon, told the Financial Services Council conference that it was also their intention to repeal the Financial Markets (Conduct of Institutions) Amendment Act 2022. That hasn’t explicitly made it into the coalition agreement, but may possibly be covered by the planned regulation sector reviews to which the coalition commits under the Act Policy Programme. Although regulatory relief is often welcomed by the sector, so is long-term stability, so we have found views split on the proposed changes to the conduct law.
As of March 2023, all financial advice providers needed to have obtained their level 5 certificates to continue operating this year. We wrote about the impact of this on the market and just how many financial advice providers and financial advisers there are in the September 2023 Quarterly Life and Health Sector Report.
Accuro and Unimed members voted in favour of combining operations. Approval from the Reserve Bank of New Zealand is likely to come early next year. The Lifetime Group acquired Protection Solutions. Fidelity Insurance, formerly known as Westpac Life, was integrated into the Fidelity Life Assurance Company. In March 2023 Cigna NZ changed its name to Chubb Life Insurance New Zealand Limited (Chubb Life NZ) and is now trading under the Chubb brand. nib have told customers they are planning to amalgamate, with their health insurance company ‘nib nz limited’ and their life and living insurance company ‘nib nz insurance limited’ combining to form one single company known as nib nz limited. The acquisition of Partners Life by Dai-Ichi has been made more real by the appointment of new personnel and the announcement of Naomi Ballantyne’s change of role to come in 2024. The Association of Financial Advisers (AFA) and the Financial Planning Association of Australia (FPA) have announced they will merge to form the Financial Advice Association of Australia. The Australian Competition & Consumer Commission (ACCC) denied the sale of Suncorp Bank to Australia and New Zealand Banking Group (ANZ).
There were some interesting court cases, with AMP settling with Australian advisers for A$100 million; MAS were penalised $2.1 million for making false and misleading representations to customers; Cigna was fined $3.575m for false and/or misleading representations.
There were lots of new faces joining the industry or changing roles this year.
AIA New Zealand appointed Michele Embling as an independent non-executive Director; Ben Lovelock as Chief Risk Officer; Shaun Baird as Chief Financial Officer; Maddie Sherlock as Head of Customer Operations; Andrew Anisi as Senior Manager Contact Centre & Business Solutions; Aaron Gilmore and Katie Hunter as AIA Vitality Coaches; Calvin Romeo to the role of head of ASB Partnership.
Asteron Life appointed Kirsten Young as the National Manager Adviser Distribution.
Chubb Life board chairman Steven Fyfe retired and Paul Brock took over his role as Chairman while Linley Wood joined as an Independent Director to the board. Chubb appointed Monique Ravening as its new Head of Underwriting and Erica Hamer as Chubb's new Wellington-based Business Partnership Manager. Adit Witjaksono was appointed as property manager for Australia and New Zealand.
Fidelity Life made some new appointments to key roles. David Winspear was appointed as Head of Channel Strategy, Michelle Doyle appointed as the new Head of Solutions and Kylie Oldham appointed as Senior Group Insurance Business Manager. Leigh Bennett was promoted internally to the role of Head of Underwriting and Mat Bark was appointed as Head of Channel Enablement. Giselle Baker was appointed as Head of Data and Analytics. In October, Ian Clancy acted as the Acting CEO until Campbell Mitchell was bought on board as the new CEO after Melissa Cantell resigned. Sam Kelly was appointed as Head of Regulatory Affairs.
MAS appointed Matt Harvey as Chief Distribution and Marketing Officer, Craig Ward as Chief Innovation and Digital Officer, Dan Mead as an Investment Manager.
nib appointed Stu Crowther as new National Manager – Adviser Distribution; Ian Sargeant as National Manager – Group, Partnerships & Strategy; Chris Carnall as Head of Distribution; Stan Bennetto as Group Health Business Development Manager.
Partners Life appointed Gemma Vivian as GM Adviser Engagement; Gareth Allen as Senior Manager Adviser Partnerships. Naomi Ballantyne announced her retirement from Partners Life in March 2024.
Southern Cross Healthcare appointed Mark Phillips as Chief Digital Officer; Dr Erica Whineray Kelly as Transformation Lead for Women’s Health; Jo Fair as Chief of People & Culture; Monica Goldwater as Chief Nursing Officer.
Suncorp New Zealand appointed Suraiya Phillimore-Smith as its new Chief Customer Officer. Lindsay Tanner was appointed as an independent director of the firm’s three boards.
Justine Gilliland was appointed to Unimed's board.
ASB appointed Carl Ferguson Chief Financial Officer and Rebecca James as its new Executive General Manager of Business Banking.
Westpac welcomed a new GM of Consumer Banking and Wealth, Michael Norfolk.
Kiwibank appointed Julia Jack as chief purpose and brand officer.
TSB appointed Kerry Boielle as new CEO after Donna Cooper resigned. Penny Burgess was appointed General Manager Customer Delivery; Molly Auva'a-O'Brien as General Manager Operational Excellence.
AMP appointed Blair Vernon as CFO.
Tim Grafton announced he’s stepping down as chief of the Insurance Council of New Zealand next year.
Tony Dench started as Financial Advice NZ’s interim CEO following Katrina Shanks’ departure to head up The Australian and New Zealand Institute of Insurance and Finance (ANZIIF). Sonja Barrett was appointed as Financial Advice New Zealand’s Board Member Director (Risk) and Peter Fa’afiu was appointed as an Independent Member Director on the Financial Advice NZ Board. Stefanos Boulieris joined Financial Advice NZ, communicating online webinars and the upcoming conference in 2024 and Sarah Maxwell joined as Communications and Social Media Manager.
Tim Tez and Sarah Phillips joined ANZIIF’s Board of Directors.
Anna Scott, Ana-Marie Lockyer and Campbell Mitchell all joined the board of the Financial Services Council (FSC). David Bishop was appointed to the Chief Marketing Officer role.
The FMA appointed Daniel Trinder as Executive Director – Strategy and Design; Michael Hewes as Director for Deposit Taking, Insurance and Advice; John Horner as Director of Markets, Investors and Reporting; Peter Taylor as Director Specialist Supervision and Response; Stuart Johnson as Chief Economist; Sharon Thompson as Executive Director – Transformation and Operational Delivery.
Graeme Edwards took on the role of Lifetime Group director and chairman and David Haintz was appointed as an independent chairman of Lifetime Group Holdings and its subsidiaries.
Craig Wagstaff joined New Zealand Home Loans (NZHL) as its new general manager for franchise, distribution, and marketing.
The Adviser Platform (TAP) appointed Pooja Shetty as Senior Operations Specialist and Naz Mistry as a Compliance Specialist and Adviser Support.
Some big names in the industry have retired, with David Haak, Tony Arthur, and our very own Rob Dowler retiring
Here’s to another exciting year in 2024!
Asteron Life and AIA awarded at the ANZIIF NZ Insurance Industry Awards
The Australian and New Zealand Institute of Insurance and Finance (ANZIIF) held the 11th New Zealand Insurance Industry Awards on 22 November. Asteron Life were awarded the Life Insurance Company of the Year award. AIA were recognised as winners of the Excellence in Workplace Diversity and Inclusion (D&I) and Excellence in Environmental, Social and Governance Change categories.
The Australian and New Zealand Institute of Insurance and Finance (ANZIIF) held the 11th New Zealand Insurance Industry Awards on 22 November.
Asteron Life were awarded the Life Insurance Company of the Year award. It is the fourth time they have won this award, having also won it in 2013, 2014 and 2021. Judges were impressed by Asteron Life’s Voice of Customer program, which provides insights into the customer experience; their high customer satisfaction scores overall; their policy wordings being accredited with the WriteMark standard; and attention to helping customers with affordable levels of cover. In particular the judging panel praised the variety of customer and people initiatives Asteron Life have implemented, ranging from Connected Care to Kids Cover to a Professional Supervision Programme.
AIA were recognised as winners of the Excellence in Workplace Diversity and Inclusion (D&I) and for Excellence in Environmental, Social and Governance Change. At AIA all leaders are expected to take responsibility for DE&I measures in recruitment, development, remuneration and the overall workplace environment. AIA recently achieved the Accessibility Tick and implemented a Menopause Tookit initiative. AIA has a five-pillar ESG strategy that incorporates sustainable operations, investment, health and wellbeing, people and culture and effective governance. They have committed to being net zero by 2050 and have already put in place many actions to work towards that goal, including new buildings aligning with green standards. They are committed to ethical investment and have a co-created employee wellbeing strategy in place.
More daily news:
Fidelity Life are holding three Adviser practice manager and admin summits across NZ in February
Fidelity Life are accepting registrations of interest for Adviser Edge 2024
Fidelity Life's last commission run for 2023 is 28 December
Southern Cross announce winners of the 2023 Southern Cross Health Insurance Wayfinder Awards
ASB launch two new Aggressive Funds
Pinnacle Life voted Most Trusted Online Life Insurance Company
Graeme Edwards takes on role of Lifetime Group director and chairman
FSC circulate submission template for feedback on FMA's approach to outcomes focused regulation
Chubb Life remove medical loading conditions on their 10% Lifetime Reward benefit
Chubb life have removed the medical loading conditions from their 10%…
Chubb Life have removed the medical loading conditions from their 10% Lifetime Reward benefit from 25 October 2023. This means all new Life, Life Income and Trauma insurance customers who, at the time of taking out an Assurance Extra or Assurance Extra Business policy have a healthy BMI measurement of between 18.5 and 24.99 and are non-smokers, qualify for the benefit. The 10% discount is guaranteed for the life of the customers policy and will be applied to the risk premium for the eligible covers. FAQ’s around the 10% Lifetime Reward benefit can be found here.
More daily news:
nib launches national adviser seminar series
Katrina Shanks named as new chief executive for ANZIIF
Katrina Shanks writes how people can apply the drawdown rules of thumb for retirement
Southern Cross Health Insurance announces panel of judges for Wayfarer awards
Southern Cross Healthcare recycles 10,000 disposal lens delivery systems
Financial Advice NZ webinar 'The business of merger and acquisition' 8 Nov
FSC announce group discounts for FSC24: Trans Tasman Strategic Leaders Summit
FSC's Workplace Savings End of Year Networking Function 7 November
FDRS Members' Forum and Annual General Meeting 31 Oct
Westpac suggests allowing mutual recognition of AML/CFT due diligence across banks
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
Southern Cross financial results released
Southern Cross Health Society have released their financial results for the year ended 30 June 2023.
$1.466 billion premium revenue
$1.295 billion paid out in claims – equal to paying 88.4 cents in claims out of every dollar received in premiums (compared to an industry average of 65.9 cents)
Premium prices were up approximately 5.1% compared to the previous year
Southern Cross Health Society had a $5.4 million deficit, while the wider Southern Cross Health Society Group had a deficit of $16.5 million
Group reserves (net assets) of $597.3 million
Paid $3.4 million claims
99% of claims are now being submitted electronically
Membership grew by 31,929 to reach 940,105 members
223 businesses buying health insurance on behalf of their employees joined this year
Southern Cross makes up 60% of NZ’s health insurance market
More than 20,000 members accessed virtual appointments via CareHQ, more than double the year prior
Members accessed 6,912 online mental health sessions with Raise, 6,324 annual health checks with MedPro and 20,663 virtual GP consultations delivered via CareHQ
Employee engagement score of 82%
Nick Astwick, Chief Executive, commented on Southern Cross’ goals around keeping premiums affordable and helping members lead healthier lives.
“…the affordability of their premiums is critical. So, we’re going to do a little bit more in prevention rather than just treatment. You’re going to see us be a lot more active with our members and our healthcare providers to prevent high-cost things from happening earlier in the cycle and actually have more affordability options.”
“Also one thing we are going to focus a lot more on in the coming years is making our members aware of how they can live healthier lives and not just be there when they’re sick. So, you’ll see a lot more from Southern Cross around trying to increase the health span – the number of years you have that are healthy – and making our members aware of that.”
More daily news:
Katrina Shanks to leave Financial Advice NZ
Chubb extend 2 months’ FREE and Multi-benefit discount campaigns until the end of the year
Lyla Dang awarded 2023 Chubb Life Actuarial Scholarship
ANZIIF announces Tim Tez and Sarah Phillips have joined ANZIIF’s Board of Directors.
Changes to direct debit processing may affect people’s payment of insurance policies
Back in May, banks changed to 7-day payment processing to align with the Responsible Lending Code, under the Credit Contracts and Consumer Finance Act (CCCFA).
Prior to this change, if a customer had insufficient funds to complete a direct debit payment, the bank may have put the customer into overdraft to complete the transaction, based on an assessment of funds expected to arrive in the customers account at a later time or based on funds available elsewhere. This will no longer happen under the Responsible Lending Code. Instead, the bank will attempt to make the payment multiple times during the day, and if none of the direct debit payment attempts are successful, the payment will be dishonoured.
Where this gets tricky, is customers may not realise they have insufficient funds. An example would be when a customer has filled up at a pay-at-pump petrol station and a merchant hold has been applied to their debit card. Due to these merchant holds being in place for up to 48 hours, this can reduce the balance available for payments, despite the balance on the customers account showing as being sufficient.
In cases like this, customers could get caught out with direct debit payments not being processed, leading to premium dishonours and policies lapsing.
Financial Advice NZ suggests that advisers check with customers that their:
wage payment date lines up with their direct debit date and/or that the customer’s insurance premium frequency lines up with their wage payment frequency and amend if necessary by emailing instructions to the relevant provider.
More daily news:
Financial Advice NZ Taranaki Regional Meeting 10 August in New Plymouth
Financial Advice NZ Hawke's Bay Regional Meeting 17 August in Napier
National propose allowing people under 30 to draw down on KiwiSaver savings for bond payments
Submissions for ANZIIF Making a Difference Awards for 2023 now open
Second quarter inflation falls to 6%, from 6.7% in first quarter
More people expected to delay retirement due to costs of living
The New Zealand Seniors Series: Working Seniors Report has found that a substantial number of New Zealanders may need to delay retirement due to their financial situation.
While the most commonly cited reason to keep working beyond 65 years of age was enjoying working (65%), 61% selected the rising cost of living and 57% chose financial needs as reasons for working past retirement age.
Only 43% of people surveyed felt on track to retire at the age they preferred, with 37% believing they may have to keep working past their preferred retirement age to fund their retirement (up from 23% in 2021) and 20% believing they would not having full control over the age they retire.
74% of people agreed that their home ownership and mortgage status had a great impact on their retirement decisions and 78% thought that being fully retired with mortgage debt was a key concern.
The implications of the pandemic, rising cost of living and looming global recession have meant that 21% of respondents will need to delay their full retirement age slightly and 17% will need to delay their full retirement age considerably.
In December we examined how the market for insurance has changed due to patterns of longer living and longer working. Between 2002 and 2022 the share of 65 to 69 year-olds who are in work rose from just over 20% to 46.5% - a group of nearly 120,000 people. It seems plain that if life is extending, so will working life, and probably the need for cover will continue longer than previously thought.
More daily news:
Enquiries to the Insurance & Financial Services Ombudsman Scheme break records three months in a row
MBIE planning a new consumer rights and harm prevention campaign
Registrations for Financial Advice NZ’s August Out of the Box tour are now open
Submissions for the ANZIIF New Zealand Insurance Industry Awards are now open
Investment Leaders Forum will be held 30 July - 1 August in Queenstown
Study finds moving for an hour a day can lower the risk of developing diabetes by 74 per cent