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.

Kelly O Kelly O

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.

 

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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

OCR remains unchanged at 3.25%

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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. 

The Financial Markets Authority (FMA) has cancelled Filcare Services Limited’s (Filcare) 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

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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

 

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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:

AIA enhance their Optional Critical Conditions Buyback and Life Buyback benefits for existing and future customers

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

This week is Men’s Health Week

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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

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Munich Re look at how insurers can develop prevention strategies

Prevention is all about intervening before a disease or condition occurs – trying to extend the health span of peoples’ lives and prevent claims from arising in the first place. Munich Re’s Life Science Report looks at prevention strategies insurers can implement.

Munich Re’s Life Science Report 2025 has insights on global trends and risks that will shape the insurance industry over the next decade. We’ve written about their in-depth looks at AI in Healthcare and Improving Cancer Outcomes sections, and now we’re looking at their Prevention chapter. 

Prevention is all about intervening before a disease or condition occurs – trying to extend the health span of peoples’ lives and prevent claims from arising in the first place. 

In order to develop effective preventative strategies, insurers need a deep understanding of each of their clients’ unique characteristics, risk factors and health trends. Insurers should focus on areas where they’ll get the most bang for their buck, addressing lifestyle factors that contribute to the most significant preventable health risks and claims drivers – namely cardiovascular disease, cancer and mental health conditions. The key preventable causes for these are obesity, unhealthy diet, physical inactivity, smoking, excessive drinking and poor sleep patterns. Munich Re have a range of tables showing the impact of preventive measures on mortality, disability, critical illness and health care costs.

Munich Re categorise preventative health measures based on the stages of disease they are intended to prevent:

  • Primordial prevention - preventing development of risk factors for the entire population

  • Primary prevention - prevent onset of disease e.g. through lifestyle adjustments and medications

  • Secondary prevention - early diagnosis (e.g. through screening programmes) and prompt treatment

  • Tertiary prevention - manage existing disease to minimise complications and improve outcomes to prevent further morbidity and mortality

  • Quaternary prevention - protect from medical interventions that are likely to cause more harm than good.

To be effective, targeted interventions need to address an individual’s unique needs. By using personalised risk profiling, digital risk scores and advanced analytics, insurers can tailor interventions to maximise impact. To be efficient, insurers need to be able to amplify their prevention efforts to reach a wide audience and use digital systems to automate processes and incorporate real-time feedback. One of the most effective means of prevention is improving health literacy, the ability to navigate health information and make informed decisions. Munich Re suggest that informing policyholders about prevention benefits, enhancing health literacy, making things easy and incentivising members will all help drive positive health outcomes.

As we’ve already seen starting to occur here in NZ, insurers are positioning themselves as active participants in the well-being of their policyholders (with AIA’s Vitality programme perhaps the most notable example of this). We’d love to hear from you instances where your clients health insurance has led to them taking proactive steps to improve their health.

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AIA employees return to newly renovated office space at AIA House in Smales Farm

AIA launch the third edition of Hikitia Mai, their Women in Leadership programme

Private hospitals may be asked to help pay for surgical trainees they take on during outsourced elective treatments

 

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Legal and regulatory update for the life and health insurance sector

FMA operational budget increases; Minister of Commerce and Consumer Affairs April diary released; FMA release Good Cents: Kiwis on savings and debt research.

25 May 2025 - The FMA operational allocation rose from about $71.3 million in the previous fiscal year to almost $78 million for the 2025/26 budget period. https://investmentnews.co.nz/investment-news/fma-wins-6-7m-pay-rise-on-compliance-enforcement-upgrades/

28 May 2025 - Minister of Commerce and Consumer Affairs, Hon Scott Simpson, April 2025 diary released with the following potential financial services sector related meetings noted:

  • 2 Apr 2025 – MEET: Kiwibank (Steve Juravich)

  • 3 Apr 2025 – MEET: Financial Ombudsman (Susan Taylor, Jane Meares)

  • 3 Apr 2025 – MEET: Commerce Commission Review Panel (Paula Rebstock,Allan Fels, David Hunt)

  • 3 Apr 2025 – MEET: Chair of ACC Board (Dr Tracey Batten)

  • 7 Apr 2025 - ATTEND: Financial Services Council Roundtable (invited guests)

  • 8 Apr 2025 – MEET: ACC Board (ACC Board)

  • 10 Apr 2025 – MEET: FMA (Samantha Barrass)

  • 14 Apr 2025 -MEET: Commerce Commission (Commerce Commission)

  • 15 Apr 2025 – MEET: ACC Officials (ACC, MBIE, Treasury Officials)

  • 15 Apr 2025 – MEET: MBIE Officials (MBIE Officials)

  • 17 Apr 2025 – MEET: Chair & CE of ACC (Dr Tracey Batten & Megan Main)

  • 23 Apr 2025 -MEET: MBIE Officials (MBIE Officials)

  • 29 Apr 2025 – SPEAK: Financial Services Leaders Roundtable (Invited Guests)

  • 29 Apr 2025 – MEET: ACC Board Chair (Dr Tracey Batten)

  • 30 Apr 2025 – MEET: AIA (Nick Stanhope)

https://www.beehive.govt.nz/sites/default/files/2025-05/Proactive%20Diary%20Release%20Simpson%20Apr%202025.pdf

29 May 2025 - The FMA releases Good Cents: Kiwis on savings and debt research, which looks into New Zealanders' attitudes and behaviours towards savings, debt reduction, and financial guidance. https://www.fma.govt.nz/news/all-releases/media-releases/good-cents-kiwis-on-savings-and-debt-research/

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AIA announce four new national sales manager appointments

AIA has made four new appointments within their Distribution team.

 
 

Aaron Gilmore has been appointed National Sales Manager, Retail. Gilmore has been with AIA since 2023 and has been an AIA Vitality Coach and Northern Region Manger, Business Development.

 

Carley Ellis has been appointed National Sales Manager, Aligned Advice. Ellis has 20 years of experience in New Zealand’s financial services industry and has a proven track record in business development, financial advice, and leadership.

Sarah Hepper has been appointed National Sales Manager, Corporate Solutions. Hepper has over 25 years of experience in the insurance industry, and has spent the past 15 years contributing to the growth of Corporate Solutions at AIA NZ

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AIA release Claims Compass Report

AIA have released their second Claims Compass Report, covering data for the year ended 31 December 2024.

AIA have released their second Claims Compass Report, covering data for the year ended 31 December 2024. AIA have over 797,000 Kiwi protected and accept 92% of all claims received.

In 2024, AIA paid out $829.6 million in claims, up $95 million on the previous year. Life accounted for 41% of all claims paid ($298.1 million), followed by Health ($167 million), Trauma ($139.5 million), Income Protection ($97.2 million) and Total Permanent Disablement ($23.9 million).

Life claims were up $34.6 million, Health claims were up $23.9 million and Trauma claims were up $22.4 million on the previous year. Increases in claims were put down to the combined impact of insurance levels increasing alongside inflation, more innovative treatment options with higher costs than established treatments, and growing demand for health services due to an aging population and growth in chronic diseases.

AIA NZ Chief Customer Officer, Maddie Sherlock said

“In New Zealand, we have observed increased rates of heart disease, cancer, diabetes, and poor mental health, brought about by worsening lifestyle factors such as diet and lack of exercise. These worsening public health trends lead to a higher demand for health services, which puts upward pressure on private health claims.”  

AIA have shone a spotlight on mental health. In 2024 $25.7 million was paid out towards mental health related claims, and $8.1 million for suicide claims. Mental health claims were highest for men aged 40 and 49 ($6.4 million), followed by men aged 50 – 59 (5.6 million). Sherlock said

“This big jump in claims for this age group reflects their life stage which is likely to be impacted by the weight of increased family, financial and professional responsibility and high demands upon their time.”

“This is the age where your overall health starts to be impacted by your nutrition, sleep and activity levels versus when you were younger. And your risk of lifestyle diseases increases. These changes can of course impact your confidence and overall mental wellbeing.”

The top AIA NZ mental health claims in 2024 were:

  1. Depressive disorders 44%

  2. Anxiety / panic disorders              14%

  3. Post Traumatic Stress Disorder      4%

  4. Chronic Fatigue Syndrome           3%

  5. Chronic Pain Syndrome                2%

 

More news:

Fidelity Life offers premium relief for severe weather-affected customers

FSC Empower Women event for Wellington Women in Insurance 27 May 

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AIA announce new leadership appointments

AIA have announced two new appointments to their Distribution team. Hannah Anderson has been appointed as Head of Retail Distribution, and Ben McQuay as Head of Corporate Solutions, effective from 28 April 2025.

AIA have announced two new appointments to their Distribution team. Hannah Anderson has been appointed as Head of Retail Distribution, and Ben McQuay as Head of Corporate Solutions, effective from 28 April 2025.

Anderson has been with AIA since 2021, most recently as Regional Sales Manager for the Southern Region. As Head of Retail Distribution, Anderson leads a team of business development managers providing support and strengthening relationships with advisers across New Zealand, within AIA’s IFA, Aligned Advice, and Home Loans distribution channels.

Hannah Anderson, Head of Retail Distribution

 

 Ben McQuay has been with AIA for the last 13 years, most recently as National Sales Manager – Strategic Accounts. As Head of Corporate Solutions, Ben leads AIA’s Group insurance distribution team, supporting long-standing relationships with organisations across New Zealand, while identifying and establishing new opportunities for growth within this important distribution channel.

Ben McQuay, Head of Corporate Solutions

 

AIA NZ Chief Distribution Officer Angela Busby said

“Hannah and Ben are valued existing members of our AIA NZ team, and I’m very proud to be able to promote some great internal talent with these appointments.”

“They are both highly experienced in business development and relationship management and have a strong track record of delivering great results for our advisers and distribution partners. I know their passion for our industry and their focus on growth will serve them well as they step into these roles.”

In other changes, AIA farewells Head of IFA and Group Distribution, Anna Schubert, and Head of Aligned Advice, Jack Newman.

 

More news:

Foundation Life policyholders can choose to take cash, swap for new policies with greater benefits or a combination in the firms’ windup

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MAS announce appointment of new CEO

Jo McCauley has been appointed new Chief Executive Officer of MAS, starting 4 August 2025.

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