
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
nib NZ completes company amalgamation
nib NZ has successfully amalgamated its two operating entities into a single company, nib nz limited.
nib NZ has successfully amalgamated its two operating entities, nib nz limited and nib nz insurance limited, into a single company, now operating as nib nz limited.
nib NZ Chief Executive Officer Rob Hennin said
“By bringing our health, life and living insurance businesses together, we’re making it easier for members to engage with us and access the support they need. Importantly, this change does not affect members’ existing insurance cover, benefits or terms and conditions. For most, the only visible difference will be the name of the insurer on policy documents, renewal certificates and bank statements.
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mySolutions webinar 'Kevin Smee- presents a Business Case Study' 9 July
FSC announce Dress of Success as charity partner for FSC25 Conference: Transforming for Tomorrow
Financial Advice NZ 'Professional Ethics Workshop' 31 July
Jon-Paul Hale believes AI doesn't have the nuance required for individual situations
Financial hardship withdrawals from KiwiSaver reach record highs
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.
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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
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.
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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
Medical premiums keep on rising – Jon-Paul Hale takes a look at why
Jon-Paul Hale has taken a look at the pressures that have resulted in sharp increases in medical premiums this year.
Jon-Paul Hale has taken a look at the pressures that have resulted in sharp increases in medical premiums this year. From more claims leading to additional people and resources needing to be hired by insurance companies to the flight of clinicians overseas and training on new technologies and tools, there seems to be a perfect storm leading to the hikes. Hale compares premiums in NZ to those in Australia, and despite the recent increases, we’re still looking affordable in comparison. Hale also ponders what would help stabilise premiums, giving a few examples. It mostly comes down to spreading the cost across a wider pool of people. A good article, one we’d recommend you check out.
More news:
Chubb Life's Essential Underwriting Guide is now available
nib produce Warrant of Wellness guide
Nominations open for Chubb Life Support Person of the Year award
mySolutions webinar 'Leo Moloney-Geany from Minitech - using AI in your business' 28 May
Apex Advice announce a new partnership with the Evidential KiwiSaver Scheme
Financial Advice NZ's Community of Practice: Hamilton event is on 2 July
Westpac announce they won't charge fintechs for standard API calls
FinTechNZ roundtable 'Digital payments for all: Exploring innovative solutions to improve access to basic transaction services' 3 June
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
Legal and regulatory update for the life and health insurance sector
The FMA publish takeaways from the CrowdStrike event survey; RBNZ publish response to submissions on core standards that set the prudential requirements deposit takers will need to meet in order to be licensed under the DTA; Cabinet designate banking as first sector under Customer and Product Data Act; Westpac is to pay a penalty of $3.25 million for misleading customers entitled to advertised discounts as well as overcharging some of its business customers; RBNZ special topic looks at how AI could impact financial stability; ASIC unveils digital portal for AFS licence applications; FSC publish KiwiSaver Industry Spotlight and Life Insurance Industry Spotlights for March 2025; The Credit Contracts and Consumer Finance Amendment Bill had its first reading and was referred to select committee; RBNZ release May Financial Stability Report; RBNZ change structure of its Executive Leadership Team.
29 Apr 2025 - The FMA have published key takeaways from the CrowdStrike event survey, which investigated how well financial service providers were prepared for and responded to the CrowdStrike incident. https://www.fma.govt.nz/library/research/key-takeaways-from-the-crowdstrike-event-survey/
1 May 2025 - The RBNZ has published its response to submissions on three of the four core standards that set the prudential requirements deposit takers will need to meet in order to be licensed under the Deposit Takers Act 2023 (DTA). The response covers liquidity, disclosure, and Depositor Compensation Scheme (DCS) related requirements. https://www.rbnz.govt.nz/hub/news/2025/05/reserve-bank-publishes-response-to-deposit-taker-core-standards-consultation
1 May 2025 - Cabinet has agreed to designate banking as the first sector under the Customer and Product Data Act. https://www.beehive.govt.nz/release/better-banking-competition-one-step-closer-kiwis
2 May 2025 - Westpac is to pay a penalty of $3.25 million for misleading customers entitled to advertised discounts as well as overcharging some of its business customers. Westpac admitted its conduct in civil proceedings brought by the FMA at the High Court in Auckland in December 2024. Westpac’s breaches of the fair dealing provisions under the Financial Markets Conduct Act 2013 (FMCA) affected a total of 24,621 customers and resulted in $6.35m in overcharges. https://www.fma.govt.nz/news/all-releases/media-releases/westpac-to-pay-3-25-million-penalty-for-misleading-customers/
5 May 2025 - The RBNZ publish a special topic from the May 2025 Financial Stability Report - Rise of the machines: How could artificial intelligence impact financial stability. https://www.rbnz.govt.nz/hub/news/2025/05/rise-of-the-machines-how-could-artificial-intelligence-impact-financial-stability
5 May 2025 - ASIC has unveiled a new digital portal to allow applicants to apply for an Australian financial services (AFS) licence. https://asic.gov.au/about-asic/news-centre/news-items/asic-launches-new-portal-for-australian-financial-services-licensees/
5 May 2025 - The FSC publish KiwiSaver Industry Spotlight March 2025. https://blog.fsc.org.nz/kiwisaver-spotlight-march-2025
5 May 2025 - The FSC publish Life Insurance Industry Spotlight March 2025. https://blog.fsc.org.nz/lifeinsurance-spotlight-march-2025
6 May 2025 - The Credit Contracts and Consumer Finance Amendment Bill had its first reading and was referred to select committee. https://bills.parliament.nz/v/6/6193a33c-40d6-4354-0d5a-08dd6ff875cc?Tab=history
7 May 2025 - Risks to the financial system have increased over the past six months, Reserve Bank Governor Christian Hawkesby says in releasing the May 2025 Financial Stability Report. https://www.rbnz.govt.nz/hub/news/2025/05/risks-to-the-financial-system-have-increased
7 May 2025 - The RBNZ is consolidating the structure of its Executive Leadership Team (ELT). The new ELT structure, which takes effect from Monday, 12 May 2025, is made up of four roles:
Assistant Governor Financial Stability
Assistant Governor Money Group
Assistant Governor Enterprise Services
Assistant Governor Operations
https://www.rbnz.govt.nz/hub/news/2025/05/rbnz-executive-leadership-team-changes
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.
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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