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.
Swiss Re on emerging risk insights
Swiss Re’s SONAR 2025: New emerging risk insights report identifies new or changed risks that could impact on insurers today and in the future.
Swiss Re’s SONAR 2025: New emerging risk insights report identifies new or changed risks that could impact on insurers today and in the future. The report highlights a range of emerging risks, with those most relevant to the life and health insurance sector being: declining consumer trust in institutions and the insurance industry; elevated levels of excess mortality; aging populations; extreme heat events; fungi-adaptations; harm caused by plastics; new technologies in healthcare delivery; rising consumption of ultra-processed foods; workforce gaps and skillset shortages. It’s an interesting read - we’ve picked out some things we think are particularly relevant to the New Zealand market.
With aging populations, fewer and later family formations could lead to less events (such as the birth of a child) that typically spur life insurance purchases.
While NZ is not subject to such extremes of temperature as in other parts of the world, a recent study estimated that 500 children under five are hospitalised for heat-related reasons each year in NZ . Currently 14 heat-related deaths occur in Auckland’s over-65 population annually – with climate change increasing the number of days exceeding 25C, we can expect the number of people dying from heat-related deaths to increase correspondingly.
With fungi adapting to warmer temperatures and the overuse of fungicides leading to more multi-drug-resistant fungal pathogens, there could be an increase in fungal infections and limited medical treatment options for those with fungal infections.
The potential health effects from micro- and nano-plastics and their additives are still being studied, but there is growing research on the negative impacts of plastics on human health.
Swiss Re highlight that innovations like GLP-1 weight-loss medications and the increasing uptake of these drugs should help reduce mortality in the future. Semaglutide (Wegovy/Ozempic) was approved for weight-loss use in New Zealand by Medsafe last month, though it is not Pharmac-funded.
The increasing availability and variety of AI and virtual health services should lead to healthier populations over time, by enabling early detection and preventative interventions. Personalised health monitoring and nudges towards healthier behaviour (a la AIA’s vitality product) will potentially reduce claim frequencies and lead to longer healthspans. Conversely, the digitalisation of medical records and other previously private health information, comes with greater data security and privacy risks.
Research has shown associations between high consumption of ultra-processed foods and elevated health risks, including obesity, type-2 diabetes, depression, cardiovascular disease and cancer.
An aging workforce will contribute to labour and skillset shortages in the healthcare field, which could lead to delays in medical treatment, under-diagnosis and sub-standard levels of care – leading to an increase in morbidity and mortality. Healthcare worker shortages have been in the news regularly in NZ and The Royal NZ College of General Practitioner’s 2022 workforce survey found 64% of specialist GP’s were intending to retire by 2032.
More news:
Fidelity Life roll out this year’s annual product re-accreditation
Financial Advice NZ community of Practice: Central District 17 July
Scheme of Arrangement between Foundation Life and policyholders approved
Russell Hutchinson writes of how insurers could improve awareness
Australian advisers change fee structure, higher revenue and profit
‘Therapy’ chatbots lead to FTC complaint over unlicensed mental health advice
In the US, the Federal Trade Commission has received a complaint about Artificial Intelligence (AI) chatbots allegedly engaging in the ‘unlicensed practice of medicine’.
In the US, the Federal Trade Commission has received a complaint about Artificial Intelligence (AI) chatbots allegedly engaging in the ‘unlicensed practice of medicine’. A coalition of digital rights, consumer protection and mental health groups have submitted the complaint about Meta and Character.AI chatbots that purport to be mental health professionals. The complaint has also been submitted to Attorneys General and Mental Health Licensing Boards of all 50 states.
The complaint has two premises. First, that therapy bots had falsely claim to be licensed therapists with training, education, and experience - despite Meta and Character.AI’s terms of service, which claim to prohibit the use of Characters that purport to give advice in medical, legal, or otherwise regulated industries.
“In its complaint to the FTC, the Consumer Federation of America (CFA) found that even when it made a custom chatbot on Meta’s platform and specifically designed it to not be licensed to practice therapy, the chatbot still asserted that it was. “I'm licenced (sic) in NC and I'm working on being licensed in FL. It's my first year licensure so I'm still working on building up my caseload. I'm glad to hear that you could benefit from speaking to a therapist. What is it that you're going through?” a chatbot CFA tested said, despite being instructed in the creation stage to not say it was licensed. It also provided a fake license number when asked.”
And secondly, questions of confidentiality. Users have had millions of interactions with these bots, often divulging deeply personal circumstances, and the complaint asserts that confidentiality is repeatedly asserted. However, the companies' Terms of Use and Privacy Policies explicitly state interactions with the bot are not confidential, and that anything users input can be used for training and advertising purposes and sold to other companies.
More news:
Claire McArthur is moving to SHARE
Financial Advice NZ webinar 'CoFi Incentives Regulations- A FAP Perspective' 6 August
Financial Advice NZ 'Microbusiness Risk Management Course' 14 - 15 August
Financial Advice NZ session 'Wellington Women in Financial Advice' 24 July
Fidelity Life offers premium relief for severe weather-affected customers
Psilocybin being researched as treatment for clinical depression brain health and longevity
The Government announces the reestablishment of the Health New Zealand Board
Legal and regulatory update for the life and health insurance sector
Commerce Commission Chair reappointed and Associate Member cross-appointment renewed; FMA seeks litigation funding boost; FMA hold series of FAP forums; FMA confirm terms of reference on review of access to financial advice; FMA case study leads to reminder that only advisers meeting competency requirements are permitted to give advice.
4 Jul 2025 - Dr John Small has been reappointed as Chair of the Commerce Commission. Associate member Stephen Ridgeway’s cross-appointment to the Commission has been renewed. https://www.mbie.govt.nz/about/news/commerce-commission-chair-reappointed
6 July 2025 - The FMA is requesting a litigation funding boost from MBIE, with forecast litigation expenditure for 2025/26 expected to exceed the annual litigation funding appropriation of $5 million. https://investmentnews.co.nz/investment-news/fma-pleads-with-mbie-for-more-legal-aid/
8 July 2025 - The FMA is holding a series of Financial Advice Provider forums. https://www.eventbrite.com/cc/fap-forum-series-4328483
8 July 2025 - The FMA has confirmed the terms of reference that they first published in April on their review of access to financial advice. https://www.fma.govt.nz/business/focus-areas/consultation/review-of-access-to-financial-advice-for-nz-proposed-terms-of-reference/
8 July 2025 - In a FMA case study, the FMA observed a small Class 2 financial advice provider using client relationship managers in the advice process for insurance conversations, where the relationship manager – who is not an adviser – completed the majority of the advice process steps. The FMA reminds advisers that only those meeting the competency requirements set out in the Code of Professional Conduct for Financial Advice Services are permitted to give regulated financial advice. https://financialmarketsauthority.cmail19.com/t/r-e-thkhtull-udkykjihyu-s/
FMA cancel FAP licence – advice process, record-keeping, disclosures, and evidence of suitability all factors
The Financial Markets Authority has cancelled Filcare Services Limited’s Financial Advice Provider licence, at its request.
Filcare held a full financial advice provider licence, and they provided financial advice to approximately 1,800 retail clients, many of whom were migrant workers from the Filipino community. Its cancellation follows the termination of its distribution agreement with Fidelity Life Assurance Company Limited and AIA New Zealand Limited and the FMA’s inquiry into its affairs.
Filcare were found to have contravened its licence obligations by failing to:
keep adequate records in relation to advice given to its clients,
ensure its clients understood the financial advice they received,
exercise care diligence and skill when providing financial advice to its clients,
provide adequate disclosures relating to advice, and
demonstrate that recommendations made to clients were suitable.
From our perspective, that appears to indicate failures in a wide range of areas of the advice process. As a comparison business we are particularly concerned with the areas of care, diligence, and skill, and demonstrating suitability – which we help more than 1,100 advisers with.
FMA’s Head of Perimeter and Response Helena Lewis said
“…we observed that clients did not receive adequate nature and scope disclosures and were therefore unable to make an informed decision about whether to seek, obtain, or act on the advice.
We also found that Filcare advisers failed to demonstrate that the recommendations made to clients were suitable. As an example, for a vast majority of clients, the documentation on file lacked the requisite detail to clearly show how the selected levels of cover were determined, and that the recommendation matched the risk tolerance, financial situation, and needs and goals of the client.
In files concerning replacement advice, there was no evidence that clients were informed of the potential risks of replacing existing policies, such as losing benefits they might have otherwise received under original policies, or the likelihood of exclusions or limitations associated with changes in health, lifestyle, or occupation that have occurred since the original policy has been taken out.”
Filcare clients with concerns are able to complain to Financial Services Complaints Limited.
More news:
Insurers see 'unprecedented' claims levels
Financial Advice NZ webinar '4S Framework for Effective Client Communication' 25 July
Westpac announce strategic agreement with POLi to bring secure open banking payments to NZers
ASB offer assistance to customers affected by severe weather
Pharmac and Medsafe to explore the utilisation of AI to speed up their processes
KiwiSaver changes are now in place
Changes to KiwiSaver have come into effect from 1 July. These changes are now live on Kiwimonster, and will be reflected in all the numbers you crunch.
Changes to KiwiSaver have come into effect from 1 July. These changes are now live on Kiwimonster, and will be reflected in all the numbers you crunch.
Government contribution has been halved. Previously, for every $1 a KiwiSaver member contributes (up to a maximum of $1046.86) in a year, the Government put in 50c. The government contribution rate has now been halved to 25c for every $1 contributed, up to a maximum of $260.72 annually.
High income earners no longer qualify for Government contribution. The Government contribution has been removed for KiwiSaver members with a taxable income over $180,000 per annum.
KiwiSaver eligibility extended to 16- and 17-year-olds. The Government contribution and employer matching is now available to 16- and 17-year-olds in the workforce.
From next year, default contribution rates increasing. The default KiwiSaver employee and employer contribution rate will be moving from 3% of salary and wages to 3.5% on 1 April 2026, then to 4% on 1 April 2028. Employees will be able to opt to contribute at a lower 3% rate and have that lower rate matched by their employer. Contributions will be reset to the default rate after 12 months, but employees can choose to reselect the lower rate again.
More news:
FSC appoint Aimie Hines as General Manager Advocacy
Hon. Heather Roy leaves role as Financial Advice NZ’s Independent Chair
DLA Piper oppose warrantless without-notice FMA inspections
May was one of Fidelity Life's busiest months on record
Ramp Up FinTech Expo 2025 is on 25 July in Auckland
BNZ offer financial assistance to customers affected by severe weather events
TSB Bank delivered a $57.6 million profit in the year ended 31 March 2025
New digital platform to help women detect breast cancer earlier launches
Munich Re assess the potential of anti-obesity medications to reverse upwards obesity trends and improve health outcomes
With obesity expected to continue to trend upwards worldwide, Munich Re’s Life Science Report 2025 looks the impact of anti-obesity medications on mortality and morbidity.
Munich Re’s Life Science Report 2025 looks at obesity and the impact of anti-obesity medications on mortality and morbidity. Obesity is expected to continue to trend upward worldwide, with projections that more than half of the global population will be overweight or obese by 2035. Obesity is associated with a range of adverse health risks, and corresponding higher mortality and morbidity.
In the past decade, a range of injectable glucagon-like peptide-1 (GLP-1) receptor agonists drugs (such as Ozempic or Wegovy), initially approved for type 2 diabetes mellitus management, have been shown to be effective in weight loss and approved for use to manage obesity. Given their popularity (and profitability), many more medications in this class are being researched and aim to be bought to market, including an oral version and a longer-acting monthly injectable. If these weight-loss drugs can stop or reverse increasing obesity rates, the ramifications to mortality and morbidity could be huge, with corresponding impacts on life, disability and critical illness insurance products.
Medical literature continues to highlight added benefits the new generation of weight loss drugs may have on many other medical conditions, from cardiovascular disease to obstructive sleep apnoea and certain neurological diseases.
Key to weight loss effectiveness is anti-obesity medications being taken in conjunction with lifestyle counselling about nutrition and exercise. Products like AIA’s Vitality programme could be key to help steer users of these medications towards better health outcomes.
Munich Re analyse a hypothetical US scenario to quantify the potential impact these medications could have on insurance portfolios. They make several assumptions, and choose a long-term horizon. Their final projection is a 21% mortality reduction for non-severely obese individuals, and a 40% morality reduction for severely obese individuals over the next 10 – 20 years. Munich Re highlight that insurers need dedicated, knowledgeable medical teams to address these findings with regards to potential insurance impacts.
More news:
Katie Wesney excited by opportunities AI offers advisers
Financial Advice NZ are looking for an Independent Director
Financial Advice NZ webinar 'New Zealand Long Term Equity Returns And Their Determinants' 30 July
Westpac have partnered with local open banking intermediary Akahu
New Head of Strategic Accounts at AIA
AIA has appointed Jonathan Beale as Head of Strategic Accounts, a newly established role within its Distribution leadership team.
AIA has appointed Jonathan Beale as Head of Strategic Accounts, a newly established role within its Distribution leadership team. Beale will lead the Strategic Accounts channel, driving innovation, growth and alignment with AIA’s broader distribution strategy.
Angela Busby, AIA NZ Chief Distribution Officer, said
“Jonathan’s appointment reflects our commitment to advisers and to the growth and value of our strategic partnerships. I’m confident that Jonathan’s proven track record and innovative mindset will make him a fantastic addition to the team.”
Jonathan Beale, Head of Strategic Accounts