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.
Changes to KiwiSaver announced by Government
The Government has announced a raft of changes to the KiwiSaver scheme, effective from 1 July 2025. We’re updating our tools to reflect the new KiwiSaver rules—including contribution increases and reduced government top-ups—so you can continue to deliver great advice, confidently.
The Government has announced a raft of changes to the KiwiSaver scheme, effective from 1 July 2025.
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.
Government contribution has been halved. Currently, for every $1 a KiwiSaver member contributes (up to a maximum of $1046.86) in a year, the Government puts in 50c. The government contribution rate will be 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 will be 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 will be extended to 16- and 17-year-olds in the workforce.
The Financial Services Council (FSC) has come out in support of the changes to increase the default contribution rate, and extend contributions to 16- and 17-year-olds. However, they have cautioned that the Government’s decision to reduce its contribution could disincentivise participation in the scheme, particularly for the self-employed. With 40% of members not actively contributing (for example, those on contributions holidays or people in irregular work), halving the government contribution makes it even less appealing for these members to start investing in KiwiSaver again.
Kiwimonster is evolving with KiwiSaver
We’re updating our tools to reflect the new KiwiSaver rules—including contribution increases and reduced government top-ups—so you can continue to deliver great advice, confidently.
While the new rules aim to increase participation, they don’t do enough to support the 40% of KiwiSaver members who aren’t actively contributing. That’s where Kiwimonster can help.
Even for those not currently contributing, Kiwimonster enables advisers to project future retirement outcomes. For example:
Self-employed clients – whether or not they’re making regular contributions.
People on a break – such as those on parental leave or overseas on their OE.
Using existing balances, advisers can still create meaningful forecasts—giving clients clarity, even if they’re pressing pause on contributions.
If you would like to find out how, give us a call.
More news:
mySolutions webinar 'Living an intentional life and building a legacy business' is on 4 June
Pinnacle Life awarded Most Trusted Brand for Funeral Insurance
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)
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/
Fidelity Life welcomes record number of advisers to Career Connect programme
Fidelity Life has announced the fourth intake of its adviser programme, Career connect, for new advisers and the recipients of their eight scholarships.
Fidelity Life has announced the fourth intake of its adviser programme, Career connect, for new advisers. This year sees the programme expand to welcome its largest cohort to date - 30 emerging advisers. The company will also soon invite adviser businesses to join the Career connect registry; to signal their interest in offering work experience opportunities to newly qualified financial advisers.
Submissions this year attracted greater diversity, , with 56% of applicants under the age of 35, 62% coming from female applicants and just under 30 ethnicities represented across the more than 70 applicants.
The Career connect programme awarded eight scholarships this year, up from seven last year, with each valued at up to $5,000. The recipients of the 2025 Career connect scholarships are:
Grace Leaso, Auckland - Kōwhai scholarship (for an outstanding Pasifika applicant)
Grace Shearer, Hastings - Toe Toe scholarship (for an outstanding young applicant aged 21-25)
Jada Mandery, Auckland - Women in Finance scholarship (supported by Kaplan Professional)
Marcel Stenning, Auckland - Pāua scholarship (for outstanding applicant demonstrating excellence)
Michelle Andrews, Auckland - Women in Finance scholarship (supported by Kaplan Professional)
Milly Elworthy, Mosgiel – Rural scholarship (supported by FMG)
Olivera Vasic-Wooller, Auckland - Rāngi Po scholarship (for an underrepresented community in financial services)
TK Buchanan, Christchurch - Pounamu scholarship (for an outstanding Māori applicant)
Fidelity Life Head of Solutions Michelle Doyle said
“By taking part, advice businesses play a vital role in mentoring fresh talent… It helps new advisers gain industry experience and build confidence as they transition into the profession.”
The 2025 cohort of 30 will start their journey this week. Over the next six months, they’ll take on part-time study to earn their Level 5 qualification through Kaplan Professional. Fidelity Life will host a graduation ceremony early next year to celebrate their accomplishments.
More news:
Financial Advice NZ Community of Practice: Christchurch 12 June
Introduction to Quotemonster webinar 9am, 27 May
Demystifying Advicemonster webinar 11am, 27 May
Business Risk Research and SOAs with Quotemonster webinar 12pm 29 May
Introduction to Kiwimonster webinar 12pm 26 May
Katrina Shanks and Kris Faafoi recognised on the Hot List 2025
Link Financial Group NZ appoints Anton Wicken new compliance manager
The banking industry welcomes the first reading of CCCFA amendment bill
New Zealanders will soon be able to receive 12-month prescriptions for their medicines
Legal and regulatory update for the life and health insurance sector
Amendments to Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) regime take effect on 1 June 2025; FMA to pilot a Financial Advice Regulatory Panel; RBNZ to launch Tara-ā-Umanga Business Expectations Survey on 21 May; the Credit Contracts and Consumer Finance Amendment Bill and the Financial Markets Conduct Amendment Bill had first readings in Parliament; RBNZ publish bulletin which discusses barriers Māori face in accessing capital.
8 May 2025 - A number of amendments to New Zealand's Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) regime are set to take effect on 1 June 2025. 3 Key Changes Impacting FAPs
Mandatory Customer Risk Rating
Enhanced Due Diligence for Low-Risk Trusts
Extended Reporting Timeframes
12 May 2025 - The FMA are to pilot a Financial Advice Regulatory Panel. The purpose of the Panel is to provide industry perspectives to the FMA on issues related to financial advice in New Zealand. The Panel will serve as a sounding board for how the FMA regulates the industry, including supporting good practice and ensure the FMA continue to regulate financial advice in a fit-for-purpose way. The FMA have approached key industry associations for nominations. https://www.linkedin.com/posts/financial-markets-authority-new-zealand_financialadvice-regulation-fma-activity-7327528052719083520-BD0y?utm_source=share&utm_medium=member_desktop&rcm=ACoAAAwmg70BxdkhEtiDz1U0ui17rIBWTv3T_Es
14 May 2025 - On 21 May 2025 the RBNZ will be launching the Tara-ā-Umanga Business Expectations Survey (BES), publishing results for the June quarter.
14 May 2025 - The Credit Contracts and Consumer Finance Amendment Bill had its first reading in Parliament. https://bills.parliament.nz/v/6/6193a33c-40d6-4354-0d5a-08dd6ff875cc?Tab=history
14 May 2025 - The Financial Markets Conduct Amendment Bill had its first reading in Parliament. https://bills.parliament.nz/v/6/8c9fe069-724a-4200-0d58-08dd6ff875cc?Tab=history
15 May 2025 - The RBNZ has published a Bulletin article which discusses the barriers Māori face in accessing capital that may be associated with market failures or imperfections. https://www.rbnz.govt.nz/hub/news/2025/05/examining-maori-access-to-capital-market-failures
Munich Re look at improving Cancer outcomes
As part of Munich Re’s Life Science Report 2025, they have investigated the projected impact of advances in cancer treatment and research. These advances will change how cancers are defined, prevented, diagnosed and treated and are expected to significantly improve cancer mortality.
As part of Munich Re’s Life Science Report 2025, they have investigated the projected impact of advances in cancer treatment and research. These advances will change how cancers are defined, prevented, diagnosed and treated and are expected to significantly improve cancer mortality.
Cancer is the leading cause of death among policyholders for most insurers worldwide, as such it demands investigation. Much progress has been made in the past couple of decades to improve cancer mortality, through both reducing cancer risk factors (such as the dramatic downturn in tobacco use) and better diagnosis and treatment. Mortality improvement trends are expected to accelerate as our understanding of cancer genetics are combined with artificial intelligence (AI).
AI will be used to both improve cancer risk prevention and diagnostics. AI analysis of an individual’s personal information such as health data, family history, genetic and epigenetic profiles, microbiome, living environment and exposure history, sometimes called a statistical biopsy, will give a better understanding of risk for a wide range of cancers. This could potentially allow for a personalised approach to risks, behaviours, and identification of which strategies may be most effective in addressing these factors.
Being able to diagnose cancer more accurately, and at earlier stages, should improve cancer mortality. AI has already led to refinements in imaging studies, and in blood, urine and tissue samples. AI can also be used to analyse the tumour’s genetic pattern, other associated biomarkers and an individual’s risk profile to allow for better prognosis and management approach. AI’s ability to recognise patters not apparent to humans will help with diagnostic tools such as imaging studies, pathologic specimen interpretation and photograph analysis.
More effective screening approaches will lead to earlier cancer diagnosis and improved cancer mortality. An important technology, ‘liquid biopsy’, is currently used to analyse fluids to look for markers indicating the presence of a cancer, typically used to detect residual cancer after treatment or recurrence. If a liquid biopsy test that can screen for multiple cancers in asymptomatic individuals could be brought to market at a price point where it is accessible to the masses, it would be a game changer. Though it would also raise concerns about over-diagnosis and surveillance bias, as some identified cancers may never post a significant mortality risk.
The combination of AI and genomic analysis of tumour cells and immune cells has led to the development of targeted treatments that exploit specific genetic patterns. These treatments are more precise and safer than chemotherapy, with the four key categories of therapies emerging being targeted monoclonal antibodies, immune checkpoint inhibitors, cancer vaccines and adoptive cell immunotherapy.
With potential changes in how cancers are classified, product definitions will need to be modified. Instead of being classified based on their tissue of origin, it’s expected new cancer tests will be able to categorise cancers based on their underlying genetic causes – potentially leading to thousands of cancer subtypes.
Where previously terminal cancers become able to be managed and instead turn into chronic disease, there may be implications for living benefits products. Reduced mortality should be favourable for life insurances businesses, though the costs of more sophisticated, individualised cancer treatments may have a negative cost impact on health insurance businesses. Munich Re predict that advances in diagnosis and changes in diagnostic criteria are going to increase cancer incidence rates in the short term, but may decrease critical illness rates if major advances in cancer prevention are realised.
AI will also have implications for underwriting. AI-based diagnosis is likely to be more accurate and predictive than current methods, with fewer false positive and false negative results, enabling risk to be better assessed. Better monitoring post-cancer treatment will mean recurrence risk can be more accurately assessed too.
More news:
Southern Cross Health Trust to fund salaries of nursing positions at City Missions
Kiwi advisers believe AI could help improve advice delivery
Pharmac to fund or widen access to three treatments, including for skin cancer, from 1 June 2025
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:
Depressive disorders 44%
Anxiety / panic disorders 14%
Post Traumatic Stress Disorder 4%
Chronic Fatigue Syndrome 3%
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
FSC release Financial Resilience Index 2025
The Financial Services Council (FSC) have released their latest Financial Resilience Index 2025. Results find that Kiwi are still feeling the financial pinch.
The Financial Services Council (FSC) have released their latest Financial Resilience Index 2025. Results find that Kiwi are still feeling the financial pinch.
Key findings include:
55% of New Zealanders worry about money daily or weekly
Job security is more of a concern, with 80% of respondents feel secure in their current roles, down from 85% in 2024 and 89% in 2023
Only 44% feel financially prepared for retirement, down from 50% in 2024. 20% feel not at all prepared.
Concerns around inflation, housing prices and interest rates have eased slightly across the board
KiwiSaver remains the top investment New Zealanders have, with 81% of Kiwis enrolled. The next most common investments are cash, including term deposits (40%), NZ shares (23%) and managed funds (17%)
Only 44% feel financially prepared for retirement (down 6%)
Self-reported financial literacy continues its downward trend, with only 43% of respondents considering themselves financially literate
More news:
ICNZ publish their annual report for 2024
New research shows 75% of Kiwi want their money invested according to their values
Bigger not necessarily best when it comes to KiwiSaver
Big banks, with their brand recognition and big budgets, have long been an almost default choice for people deciding who to invest their KiwiSaver funds with. That looks like it’s starting to change.
Consumer NZ has taken a look at how KiwiSaver is going. Big banks, with their brand recognition and big budgets, have long been an almost default choice for people deciding who to invest their KiwiSaver funds with. That looks like it’s starting to change. Encouragingly, 29% of new members chose their KiwiSaver scheme independently, and 8% consulted a financial adviser about what their best option would be, though 14% were automatically allocated a default scheme. There is still some reluctance to change providers, with 12% of people feeling it’s too much hassle to change provider, 8% having thought about switching but haven’t gotten around to it and 5% not knowing where to start.
With more than 3.3 million members and more than $111 billion of total funds under management, it’s worth putting in a little effort to see which fund best suits your situation.
While banks in general are big spenders on advertising, ANZ outspends them all. Yet ANZ’s KiwiSaver returns are underwhelming, coming in last (12th) for its management of conservative KiwiSaver funds, 6th (out of 12) for moderate funds, second to last (out of 15) for balanced funds and 10th (out of 12) for growth funds, according to Morningstar’s December 2024 results. Yet ANZ holds the largest share of the KiwiSaver market, with $21.9 billion funds under management.
As of 2021, ANZ and ASB are no longer default KiwiSaver providers, leaving BT Funds (Westpac) and BNZ as the only default big bank providers for new members. It will be interesting to see how this impacts the various banks’ KiwiSaver market share over the next decade or two.
In good news, Consumers NZ’s annual survey on KiwiSaver satisfaction highlights growing satisfaction, with February 2025 results showing 82% were satisfied with their provider.
And what do people most want from their KiwiSaver provider? Good returns with responsible investments came out top (42%), followed by the best returns (37%) and investing responsibly, even if it comes with slightly lower returns (14%)
More news:
Southern Cross Health Society using Patient Feedback to celebrate surgeons
Shaun Phelan is retiring from his role as National Manager of MAS Business Advisory Services
AML Summit 2025 is on 8 - 9 May in Auckland and livestreamed
Concerns and scepticism about AI
While Artificial Intelligence (AI) is rapidly being rolled out globally, concerns remain around privacy, cybersecurity and accuracy and reliability of outputs.
While Artificial Intelligence (AI) is rapidly being rolled out globally, concerns remain around privacy, cybersecurity and accuracy and reliability of outputs.
A survey by the Financial Planning Standards Board of more than 6,000 individual practitioners in finance found that 54% of respondents were either already using or piloting AI in their business (with a further 10% planning to rollout AI in the next 12 months). Respondents believe likely uses of AI will include collecting client information, analysing data and developing recommendations. Yet almost half worried about data privacy and cybersecurity and 42% worried about accuracy and reliability of outputs.
GlobalData’s 2024 Emerging Trends Insurance Consumer Survey, which polled more than 5,500 people across 11 countries, found consumers believed AI could have some benefits. Perceived benefits using AI included shortened time required to reach a customer service representative (73.8%), gains in operational performance (71.5%) and better pattern recognition than humans (71.2%). Those who have engaged with AI insurance chatbots were impressed, with 74.5% reporting being satisfied or very satisfied with the interaction. Despite these beliefs, consumers were found to have data privacy concerns and trust issues.
GlobalData’s 2024 Emerging Trends Insurance Consumer Survey (Q3), found that 39% of respondents would be quite or very comfortable having an AI tool decide the outcome of their insurance claim.
More news:
Fidelity Life held first adviser council meeting of the year
Tony Vidler writes about the importance of a prospecting system
NZUAC Christchurch Expo is on 7 May
Apex Advice are looking for a Head of Marketing and Communications
mySolutions webinar 'The journey of building a multi discipline practice' is on 30 April
Code of Banking Practice updated with new commitments to better protect customers against scams
Privacy Week 2025 is coming up
Privacy week runs from 12 - 16 May, and features a range of free webinars that promote privacy awareness.
Privacy Week 2025 runs from 12 – 16 May, with this year’s theme being Privacy on Purpose. You can register for a range of free webinars which span the gamut from AI and Privacy to Māori data privacy.
The timetable of webinars is below.
More news:
Partners Life webinar 'FMA monitoring visit, getting ready to be ready' 8 May
Fidelity Life update Working together guide
FSC members can attend a FMA Special Interest Group Networking Event 7 May
Financial Advice NZ webinar 'Making a Difference: Stories of Impact and Innovation' 30 April
Fintech Festival is on 30 April 2025
Digital Trust Hui Taumata is on 12 August
New Zealand’s annual inflation rose slightly to 2.5% in the March quarter