moneyblog

Woman cuts off own hand in brutal insurance scam

A 21-year-old Slovenian woman deliberately cut off her own hand with a circular saw in an attempt to cash in on an insurance claim. The Police say the woman had taken out five different insurance policies months prior and had only made a few payments on each of the contracts. The woman would have allegedly stood to gain 400,000 euros and is believed to have left the severed hand behind rather than bring it to the hospital to ensure the disability was permanent. Click here to read more. 

nib looking to strengthen adviser relationship

nib is looking to expand their adviser services. After announcing the conclusion of their current relationship with Fidelity Life, nib has been decided to increase the support they offer to advisers. This move works to simultaneously respond to the changing legislation. nib see the impending changes as an opportunity to enhance the way they support advisers and clients and “to help more New Zealanders get the benefit of insurance protection”.

Commencing July 1, nib will have adviser partner managers in place to work alongside advisers, adviser businesses and dealer groups. Adviser partner managers accountabilities include helping advisers to ensure clients have covers in place that protects them and their families.

Furthermore, nib is looking to develop and implement tools for advisers to create nib health insurance solutions. Evolving the current distribution model is set to expand nib’s competence in the adviser distribution channel, and ultimately their market share in the private healthcare sector.

Click here to read more.

FSC: Navigating Regulation part 11

Here is the eleventh message from the FSC 'FSLAB passes Third Reading and Royal Assent' about future changes coming to financial advice regulation. Click here and scroll down to access the first ten messages. 

Southern Cross invest in AI

Southern Cross has introduced a new ‘digital human’ which is powered by FaceMe. Although nameless, the adviser-bot is a novel product in the global health insurance industry. The introduction of the adviser-bot will allow it to answer basic questions which people may feel embarrassed to ask advisers. Southern Cross hope to potentially expand the role of the adviser-bot, so customers are able to better understand Southern Cross products. From InvestmentNew NZ, by David Chaplin.

Click here to read more.

OnePath Product Changes

OnePath has announced a number of product enhancements effective 9 April, they have also updated their application form making it easier and shorter for clients to fill out.

Here is a list of some of the changes:

Mortgage Repayment Cover

• Now include cover for rental obligations or income, which were previously unavailable with this product.
• We have changed the offset provision and have introduced a claim payment cap of $7,500 per month before offsets apply. 
• A 10% price increase associated with these enhancements for new policies is targeted for June 2019. However the enhancements will be effective immediately for new policies sold from today. Our pricing will still be competitive and provide your customers with great value for money.

Introductory inflation option on MRC

• We have introduced the inflation option to Mortgage Repayment Cover. And, as a special introductory offer there will be no additional cost for this benefit for new business sold in the next six months.
• New customers will have this benefit option included in their policy free of charge. After the first 12 months of the policy your client will be able to retain or remove this benefit at renewal. If they choose to retain it, they will pay a premium for this going forward.  
• Once Sonata is introduced (targeted for late September) this benefit will become optional for all customers.

Other product changes

Further changes include, but are not limited to: 

• improved guaranteed insurability option and life events within Assurance Extra. 
• increased bereavement support benefit to up to $25k.
• extended the period of premium suspensions under the Assurance Extra Parental Leave Loyalty Benefit.
• removed the three month exclusion from Complete Disablement Cover.
• updated some trauma definitions to reflect current medical practices.

Code Submissions Released

Submissions on the Code of Conduct have been released. Well worth a look through. 

“Pays to Read” hidden contest

An American travel insurance company ran a “Pays to Read” hidden contest in their policy document wording and one lucky lady who decided to read the entire policy document came out $10,000 richer. Click here to read more. 

It is fun that such a contest existed - a smart way to try and get a few more people to read the documents. However, it is also kind of a indictment of the sector. The challenge is that most people assume the contract is 'fair' and take their chances on it turning out to be the case when they think they could claim. The result is not pretty, as policies vary - some are much worse than expected when it is time to claim. 

Partners Life: New Adviser Training Course - Christchurch

Partners Life have announced a New Adviser Training Course to be held on the 27 - 29 May at the Crowne Plaza in Christchurch. For advisers in the South Island who are interested please click here. 

New FSC Navigating Regulation Advice Hub.

FSC has launched their new Navigating Regulation Advice Hub. The hub will offer up-to-date details on the upcoming changes for the financial advice industry. Written and video material will be available and will be updated as changes occur.

Man caught on video faking ice cube slip-and-fall for insurance money

A New Jersey man has been arrested after filing two insurance claims, stemming from alleged injuries he sustained after taking a fall in a cafeteria at a business he was subcontracted to work for. However, the whole incident was caught on camera. The man was charged with one count of insurance fraud in the third degree and one count of theft by deception in the third degree for fraudulently filing an insurance claim in a fake slip and fall. Although the insurance environment differs in New Zealand, humans are similar the world over - and its a reminder that incentives can sometimes act in interesting ways on people. 

Towards Wellbeing conference

The Towards Wellbeing conference will be conjointly held by the Financial Services Council and Workplace Savings NZ 11^th-12^th September at the Pullham Hotel.

Confirmed speakers are Minister Grant Robertson, Minister Kris Faafoi, Amy Adams MP Spokesperson for Finance, National Party, Rob Everett CEO, FMA, Kendall Flutey Young New Zealander of the Year 2019, Angela Mentis CEO, BNZ, Rob Flannagan Chair, FSC and Richard Klipin CEO, FSC.

The main platforms will revolve around Wellbeing in Aotearoa, Conduct and Culture, - Diversity, Leadership & Change and Towards Prosperity.

Tech Alley will return to the FSC and Workplace Savings NZ Towards Wellbeing Conference in 2019. It will allow the Financial Services Market to meet with for Fintech, Insuretech, Healthtech, Edutech and Regtech companies.

 

 

AMP Go-forward Policy approach

AMP recently did a number of workshops around the country presenting product enhancements in the Wealth Protection product suite.

BNZ dismisses Australian media report it's negotiating a sale of its life insurance business to Partners Life

BNZ has rejected an Australia media post that they are in discussion with Partners Life about buying their Life Insurance business. 

A BNZ spokesperson told interest.co.nz: “We are not considering selling our insurance business and we’re not in a process with Partners Life.” While a Partners Life spokesperson said: “We don’t have anything to add to this story. You are best to check in with BNZ for comment.”

Click here to read more. 

Cancer-stricken business owner struggling to sell Auckland restaurant for third of purchase price

Breast cancer patient Kingna Yu tells her story of struggling financially as she loses money on her Auckland business due to City Rail works taking place in front of her store. She has put breast reconstruction surgery on hold while she waits to see if there is a chance to get compensation for the decline in business. Click here to read more.

This is a desperately sad situation which shows the value of having a buffer against events - and if that buffer cannot be cash, it could be insurance. Of course, there is no way of knowing exactly what this person's situation was - so just to acknowledge that may not have been possible for them. 

Acknowledging the Hippo in the Room

A Rotterdam School of Management report found that "projects led by junior managers were more likely to be successful than those that had a senior boss in charge”. They explored the reasons why, here are their top three:

“Staff were likely to fear "the possible consequences of criticising the work of high-status employees"”

"It can be challenging to give feedback if there is a culture of fear around the office" - Sarah Biggerstaff, a lecturer in leadership at Yale School of Management

“Senior figures should "never ridicule or push back strongly in large groups, so that people feel safe voicing their views"” - James Farrow, founding director of UK management consultancy Curium Solutions

They even proposed a highly novel approach to the effect of all initiative being overawed by the highest paid person in the room:

“Solution to the problem is for the leader of any new project to be kept secret, thereby encouraging junior managers to be more willing to put across their honest opinions”

Click here to read more 

What is a severity based trauma product?

It is clear that, say, Sovereign's Progressive Care product is a severity-based trauma product. But is the Major Trauma product offered by Asteron Life? Or Sever Trauma cover from Partners Life? These offer tougher definitions allowing larger sums of cover to be bought. In conjunction with the more generous definitions of comprehensive trauma products also in both ranges they offer a modular approach to a severity-based trauma, but individually, neither component is a 'severity-based' trauma product. Or is that being pedantic, and all forms of trauma that offer more (dollar value) cover based on tighter definitions, should be considered severity-based?

Losing money because of bias?

Giving up bias helps us reach more people, serve them better, and ultimately, make better returns.

If we believe that people with Chinese cultural background don't buy insurance, when in fact they do, we tend not to try and offer our products and services to them - and so we leave out a big section of our market.

If we believe that women don't buy income protection insurance, and so we don't recommend it, then likewise, we miss out - and so do they.

Untested preconceptions about the market confound us all the time. The essence of the science of management is measurement. What we measure we can manage. The opposite of that is the tyranny of 'gut feel', which is little more than the accumulation of past experience - not all bad, just a lagging indicator which tends towards self-reinforcing views of the data. That's because if we don't try and sell women income protection we continue to experience a market in which few of our female clients buy income protection. It happens to all of us. Take this research, for example, reported by The Economist as evidence of bias in Facebook advertising algorithms. Perhaps an example of how you have to watch for bias in every stage of the marketing channel right through to the customer.

AIA celebrates its Centennial by partnering with the Mental Health Foundation

Press release from AIA below: 

Life and health insurer AIA celebrates its Centennial by partnering with the Mental Health Foundation

Significant donation to be used to support the provision of important mental health and wellbeing services in Christchurch as well as suicide prevention resources throughout New Zealand

Auckland, 5 April 2019.

AIA is celebrating its Centennial by joining forces with the Mental Health Foundation.  The partnership is aimed at raising awareness of mental wellbeing and the need for greater support across New Zealand. 

On Friday, around 1000 New Zealand-based AIA staff will take part in a 100km baton relay at their offices at Smales Farm in Auckland.  The charity relay is the first of a number of activities in AIA’s partnership with the Mental Health Foundation this year.

Having recently merged with Sovereign, one of New Zealand’s leading life and health insurers, AIA is actively focused on improving the health and wellbeing of its employees, customers, partners and all New Zealanders. 

AIA New Zealand CEO, Nick Stanhope said:

“We know that nearly half of New Zealanders will live with a mental illness at some point during their lifetime.  We also know that one-in-five New Zealanders life with mental illness each year.”

“They are shocking statistics, and by any standards, demonstrate the need for better mental health support services across New Zealand.”

“What’s more, despite the incredible progress in improving life expectancy and physical health, we still have high levels of mental illness across New Zealand.  Thankfully we have organisations such as the Mental Health Foundation. We’re thrilled to be working with them and to help bring important support services to those in need,” Mr Stanhope said.   

CEO of the Mental Health Foundation, Shaun Robinson said:

“We are delighted to be partnering with the team from AIA. Our organisations are both in the business of wellbeing and we have been impressed by the level of commitment shown by the staff at AIA – a 100km baton relay is quite an achievement.”

“Right now the focus of the Foundation is on the people of Christchurch.  AIA’s donation will allow us to continue to offer our ‘All Right?’ resources to people in need in Canterbury as well as the provision of suicide prevention services throughout New Zealand.”

“We are very grateful for our partnership with AIA and I know our people in Christchurch and throughout the country will be very grateful too,” Mr Robinson said.   

At the end of the relay, with the help of their staff who have been fundraising throughout March, AIA will donate $100,000 to the Mental Health Foundation.      

For more details, for images or videos from the relay, or to arrange for an interview, please contact Craig Glover, Head of Corporate Affairs and External Communications, on 027 275 3405.

-Ends-

Insurer's compliance challenges and the effect on advisers

Those insurers that distribute primarily through advisers are being challenged to ensure that their products are suitable for their clients. While suitability is not intended to mean everything financial advice means, any requirement to assess suitability is going to affect advisers in one way, or another. One aspect of suitability is eligibility - and we're not just talking about a client being old enough to purchase the contract. While 'hard' rules such as age of entry requirements are enforced by insurers, 'soft' rules such as whether a client would be eligible to claim under certain circumstances (such as some income protection scenarios for self-employed clients) have usually been left with the adviser to work out with the client, with the occasional intrusion of the underwriter. Other issues, such as assessing whether an applicant can afford the product, or is vulnerable to pressure, and may therefore require additional help, add complexity.

If one outcome of conduct review work is that enhanced management of these issues is required, then insurers must decide whether the work can be carried out by advisers, or if they must make all the assessments themselves. Either way, advisers will feel the effects. Additional information may need to be collected. Further checks - calls perhaps from the insurer to the client - may be required. The requirement to consider suitability throughout the life of the contract could place the insurer in the position of flagging up the issue of suitability problems. The extent to which the adviser is involved in these tasks may vary - but like it or not, there will be an effect on the relationship. 

 

 

Fascinating, but not thrilling

I cannot figure out how the passage of FSLAB requires urgent flashing headlines. We knew it would pass, and frankly, whether it passed last week, or next week, or for that matter next month, is of little importance. I am glad it has passed, and it is a significant improvement on the Financial Advisers Act which it replaces. I suppose completion is something to be quietly glad about. I reckon it is a bit like watching curling, which is an interesting sport, but hardly thrilling. Chess is likewise engrossing, and as a child with plenty of time on my hands and a clutch of nerdy mates, it became an excellent pass-time - but we were never breathless with excitement. I find our industry similarly engaging. Constantly shifting, a social as well as an intellectual challenge. Leadership is vital, but so is good data. Yet large change comes slowly - as it should - because we are custodians of a promise that requires a conservative approach to risks and investments.