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.
Possible changes to probate threshold
The Ministry of Justice are currently consulting on a proposal to raise the threshold for distributing someone’s assets after death without the need for probate or letters of administration.
The Ministry of Justice are currently consulting on a proposal to raise the threshold for distributing someone’s assets after death without the need for probate or letters of administration. The probate threshold of $15,000 (per asset) was last updated in 2009 and is set in the Administration (Prescribed Amounts) Regulations 2009. KiwiSaver was only in its infancy the last time the threshold was updated, and it has not been adjusted for inflation since.
The Ministry are seeking feedback on: how many payments are made without the need for probate; data on the average size of assets people hold when they die; how easy or difficult the current situation is to navigate when deciding whether to pay out; if there are any situations where account above $15,000 are unclaimed; what an appropriate new threshold would be.
Members of the FSC can contact the FSC if they want to contribute to the FSC’s submission.
More news:
Financial Advice NZ webinar 'Are you Cyber Savvy enough?' 13 November
KiwiSaver determined to be competitive
The latest Melville Jessup Weaver analysis has determined that KiwiSaver is statistically competitive.
The latest Melville Jessup Weaver analysis has determined that KiwiSaver is statistically competitive. Competitiveness, as measured by the Herfindahl-Hirschman Index (HHI), improved slightly year on year. There are 38 schemes and 34 providers available for kiwis to choose from, with the three largest owners (ANZ, ASB and Fisher) accounting for around half of scheme members and assets. There was a slight shift in favour of providers outside the 10 largest, who expanded their market share by 0.5% during the 12 months to March 31.
More news:
FSC to hold member meeting on XRB Consultation
Banking Ombudsman Scheme received 6,054 cases
ANZ announce official partnership with Auckland Football Club
Executive Team changes at Partners Life
From 1 October 2024, there will be some changes to the executive team at Partners Life. Andries van Graan is now Chief Distribution Officer and Kate Dron is now Chief Customer Solutions Officer.
From 1 October 2024, there will be some changes to the executive team at Partners Life. Andries van Graan, previously Chief of Adviser Distribution, will be Chief Distribution Officer. Kate Dron, previously Chief and Appointed Actuary, will be Chief Customer Solutions Officer.
Van Graan’s new role will focus on strengthening partnerships with independent financial advisers and working to amplify Partners Life’s customer referral partnership with BNZ.
Dron’s new role will focus on ensuring that Partners Life’s solutions service a wide range of customer needs with a particular focus on enhanced simplicity and accessibility and includes establishing a establishing a business led data, analytics, and insights team.
More news:
nib extends three months free offer until 31 October 2024
mySolutions webinar 'KiwiMonster' 9 October
Financial Advice NZ webinar 'Understanding artificial intelligence in financial services' 16 October
AIA launch new campaign offering customers up to three months off their premiums
AIA NZ has launched its latest campaign which offers new and existing customers up to three months off their premiums.
First month free when customers take out a new eligible insurance policy between 18 September and 22 November 2024, and have the policy issued by 23 December 2024.
Second month free when customers add and activate AIA Vitality membership within 6 weeks of the policy being issued.
Third month free when customers reach Silver Status with AIA Vitality within the first 10 months.
Existing AIA Vitality member at Silver Status or beyond who buy a new eligible policy, automatically get three months premium-free on the new policy.
More news:
The Adviser Platform is offering its CRM system free of charge
Kirk Hope has started his appointment as Chief Executive Officer at FSC
Organisational changes afoot at nib
In the lead up to nib launching their Life and Living Benefits suite of products early next year, the health insurer has made some organisational changes.
In the lead up to nib launching their Life and Living Benefits suite of products early next year, the health insurer has made some organisational changes. A new distribution leadership team has been created, with the three key distribution role reporting to Chief Executive Rob Hennin.
Chris Carnall, Head of Distribution, is moving to the role of General Manager – Adviser Life and Living, leading the development of nib's new Life and Living Benefits suite for advisers.
Amanda Savill is joining nib to lead the adviser distribution team, where she will create a strategic and operational plan to deliver on service and growth for their advisers.
Pippa Leydon takes on the role of National Manager - Group, with responsibility for the strategy and growth of nib’s Group business, developing commercial and strategic relationships.
More news:
Shamubeel Eaqub notes the average Kiwi is unable to afford life insurance
Financial Advice NZ webinar 'Learnings from a FMA Monitoring Visit' 2 October
Financial Advice NZ Canterbury Branch Meeting 22 October
Setting Up for Success - How to Build a Great Mentor Relationship' webinar 15 Oct
mySolutions webinar 'Interviewing techniques: how to get people to open up' 18 Sep
mySolutions webinar 'Added benefits of mySolutions membership' 25 Sep
Resolution Life has appointed Moses Ojeisekhoba as its new President
Committee recommends Contracts of Insurance Bill moves forward
New Zealand’s Finance and Expenditure Committee has recommended that the Contracts of Insurance Bill move forward. After reviewing the bill, the committee proposed several key amendments.
New Zealand’s Finance and Expenditure Committee has recommended that the Contracts of Insurance Bill move forward. After reviewing the bill, the committee proposed several key amendments:
Insurers are allowed reasonable time to gather information when processing claims.
That dishonesty be treated as a lack of reasonable care rather than outright fraud.
That a power to create some regulation of the use of genetic tests in underwriting is included in the draft law.
Government officials anticipate the bill to be passed by the end of this year. Changes insurers will need to prepare for once the bill comes into force include reviewing existing contracts to ensure compliance with new consumer protection measures; preparing for potential regulations on the use of genetic data; and ensuring claims processing procedures meet the new ‘reasonable time’ requirements.
With regard to the power to regulate the use of genetic tests, the report states:
“We agree that this issue is important. Our view is that a cautionary approach to genetic testing is needed to avoid undue genetic discrimination. However, we also grappled with the question of how to address genetic testing in this bill. We considered the implications of different options, including a full legislative ban on “genetic discrimination”.
“Ultimately, we recommend inserting new regulation-making powers, in Part 3, new subpart 4A (clauses 86A, 86B, and 86C), that would enable the Governor-General, on a recommendation of the Minister, to prohibit or regulate the conduct of insurers in relation to genetic testing. Before recommending any regulations, we expect the Minister to conduct a full policy development and consultation process.”
More news:
Financial Advice NZ webinar 'Creating an equitable advice experience for couples' 25 September
Consultation for the Government’s draft Suicide Prevention Action Plan 2025-2029 opens
From 1 October 2024, Keytruda will be funded for eligible people with certain cancers
The FSC release their latest Money & You Report
The FSC have released their latest Money & You Report, ‘Consumer Resilience and the Road to Prosperity’. It paints a picture of New Zealander’s who have struggled with the cost-of-living crisis and are feeling financially pressured to the extent they have changed their spending habits, decreased their savings and have concerns about their ongoing ability to service debt.
The FSC have released their latest Money & You Report, ‘Consumer Resilience and the Road to Prosperity’. In all it paints a picture of New Zealander’s who have struggled with the cost-of-living crisis and are feeling financially pressured to the extent they have changed their spending habits, decreased their savings and have concerns about their ongoing ability to service debt.
Some key findings include:
49% are somewhat or very unconfident in the overall economy (up from 45% in 2023), with women older generations and Europeans more likely to be unconfident in the economy. Those who are receiving financial advice are more positive about the impact of the economic climate.
94% of respondents are concerned about financial issues, with the cost of living cited as respondents’ top financial concern (66% very concerned), followed by inflation (51% very concerned) and house prices (45% very concerned).
Financial pressures have resulted in a change in spending habits, with buying cheaper groceries (57%) and cutting back on takeaways (55%) and treat purchases (49%) the most common changes. Concerningly some New Zealanders have reported skipping meals (17%), limiting heating (24%) and avoiding medical treatment or skipping medication (16%).
31% of New Zealanders were unhappy with their financial situation this year (up from 22% in 2023 and 25% in 2022).
There has been a drop in the number of retirees with more than 10 years of retirement savings, and an increase in those with less than one year of current retirement savings.
82% hold investments, with KiwiSaver the most likely held investment type.
Troubling KiwiSaver trends include average member weekly contributions dropping 7.8% (comparing 2023 to 2021); hardship withdrawals are at an all-time high; the KiwiSaver gender gap continues to increase, now sitting at a $7,450 average balance difference between males and females. Most worryingly, the average KiwiSaver member who has been contributing all their working life may not have enough to support them during retirement, according to Massey University Retirement Expenditure Guidelines.
Those who have struggled to make recent debt payments have been more proactive, with 29% reaching out to their bank (up from 20% in 2023) or speaking to family or friends (38% up from 28%).
Research was conducted via online survey, with 2,002 respondents completing the data during March 2024.
More news:
Chubb Life Chief Executive Gail Costa is to retire in April 2025
Anna Schubert talks through self-development tips for advisers
Tony Vidler suggests how advisers can create compelling offers
Clive Fernandes writes of how AI can help personalise financial advice
‘Inspiring Success’ event takes place on 7 November in Auckland
mySolutions webinar 'SimpleWills and your estate' 11 September
Debate whether it is it time to boost KiwiSaver contributions at FSC pre-conference session
Value For Money report highlights top performing ethical KiwiSaver funds
Lloyd Burr writes about how hard it is to start a new bank in NZ
Inland Revenue is proposing to make fees charged for fund management exempt from GST
Asteron Life rating downgraded
S&P have lowered Asteron Life's financial strength and issuer credit ratings to 'A' from 'A+' and given them a stand-alone credit profile of 'a-'.
S&P have lowered Asteron Life's financial strength and issuer credit ratings to 'A' from 'A+'. After a review, S&P has given Asteron Life Ltd a stand-alone credit profile (SACP), which reflects the insurer's satisfactory business risk profile, of 'a-'.
The reason given for the downgrade is an expectation of reduced support from Suncorp Group Ltd in the leadup to the sale of Asteron Life, due to be completed at the end of January 2025. S&P have stated that the ratings on Asteron are on CreditWatch because they believe they will likely lower the ratings if the sale proceeds, with a likely outcome of a one notch ratings downgrade.
More news:
Incentives for those advising consumer clients set to change on 31 March 2025
mySolutions webinar 'Asteron ConnectedCare' 4 September
UniMed Breakfast Series 'with Conrad Goodhew 8 October
Fidelity Life release details of their customer engagement forum
Fidelity Life announce Apollo enhancement
Financial Advice NZ Professional Ethics Workshop 26 September
Apex Advice looking for an experienced Marketing & Communications Specialist
Commerce Commission release banking competitiveness study
The Commerce Commission have released the Final Report on personal banking competitiveness.
The Commerce Commission have released the Final Report on personal banking competitiveness. The 14-month market study found
“a stable, highly profitable, two-tier oligopoly with no disruptive maverick and a lack of obvious or aggressive price competition.”
The study found little strategic differentiation between the major banks and found their growth targets focus on maintaining market share and protecting margins and profitability, limiting competitiveness and innovation.
The Commission’s recommendations to Government can be grouped into four key areas and broadly speaking involve making Kiwibank a more disruptive competitor, accelerating progress on open banking, ensuring the regulatory environment better supports competition and empowering consumers.
While both the Finance and Mortgage Advisers Association of New Zealand (FAMNZ) and Financial Advice New Zealand (FANZ) have welcomed the report, after criticising the draft report which was released in March. Since then, the Commerce Commission has engaged with both associations as well as other representatives from the mortgage industry to better understand the role advisers work.
Leigh Hodgetts, country manager of FAMNZ, has called out the Commerce Commission’s statement that advisers should put more emphasis on price, saying that there are many factors around individual circumstances that must be considered when a consumer takes a loan.
Financial Advice New Zealand said it would be seeking clarity on the recommendations, in an effort to determine any unintended consequences.
More news:
Tony Vidler recommends advisers can evidence why their advice was suitable at the time
mySolutions webinar 'The meeting before the meeting' 28 August
Asteron Life sale should be completed by the end of January 2025
Asteron Life profit after tax fell by 27% to $19m
Financial Advice NZ Central Branch Meeting 27 August
Southern Cross Health Insurance opens nominations for Wayfinder Awards
ASB CEO Vittoria Shortt would like to see KiwiSaver policy changes
The FMA publish the latest 'Money with Mary'
IFSO needs to incorporate as a limited liability company for merger
Life advisers reminded they need to actively review legacy policies
Compliance Refinery director Steve Burgess has reminded life insurance advisers they need to review legacy policies or risk opening themselves up to censure by the FMA.
Speaking at a Quotemonster roadshow event in Lower Hutt, Burgess said of legacy products,
“If you don't look at it, the regulator could decide that's you saying that product is suitable for your client.”
Burgess also cautioned that some legacy products have features that are difficult or impossible to replicate with new policies, so as well as listing the advantages of replacement policies, advisers need to be recording any disadvantages clients may face if they change.
Steve Wright has also written of how the FMA have flagged ‘suitability of advice’ as something they will be focusing on in future. Wright has helpfully listed some steps advisers should be following to help ensure the suitability of their advice, including having a suitable fact find process; needs analysis and quantification of client risks; avoiding limiting or transferring risks to an insurer; assessment of insurance types required and sums insured; and giving appropriate product recommendations.
More news:
Financial Advice NZ's webinar on the Code of Professional Conduct is on 28 August
ASB's net profit after tax down 10% from previous year
Travis Hamilton named the New Zealand country Chair for the Million Dollar Round Table organisation
Patients across the country concerned at GP fee increases; GP’s say capitation funding insufficient
Most KiwiSaver providers have now submitted their KiwiSaver climate reports