FSC Life and Health Insurance Special Interest Group Networking Event and launch of Money and You research

The Financial Services Council (FSC) will be exploring trends and insights from their latest Money and You research report ‘'Protecting Possessions, Not People' at the upcoming Life and Health Insurance Special Interest Group Networking Event in July. The event is open to FSC members in the Life and Health insurance community and will feature:

• The value of Fringe Benefit Tax exemptions for health insurers with insights from the NZIER investigation, presented by Tony Reid from Southern Cross.

• Genetic testing - examples of the impacts of banning the use of genetic testing in underwriting, presented by Stephen Potter from AIA New Zealand.

• Outlining good practice for informing future MBIE consultations with Kirk Hope, CEO of the Financial Services Council.

• Money and You: Protecting Possessions, Not People Research Launch - a taster of the FSC’s newest research with FSC Research Committee Chair, Mark Banicevich and a small panel discussion on the attitudes of New Zealanders and insurance.

The event will run from 10:30am – 12:30pm on 15 July at Russell McVeagh, Level 30, Vero Centre, 48 Shortland Street, Auckland Central, or people can join online, you can register here.

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. 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.

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Chubb Life's Essential Underwriting Guide is now available

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How to use the underwriting requirements tool on Quotemonster

This optional tool can help you save time and see if there’s any additional requirements you need to prepare when doing initial applications.

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.

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.

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nib New Zealand launches Ultimate Life & Living product range

nib New Zealand has launched Ultimate Life & Living, a suite of six new insurance products available exclusively through advisers.

The six new products are:

• Ultimate Life Insurance

• Ultimate Trauma Insurance

• Ultimate Income Protection Insurance (available in both Indemnity and Agreed Value)

• Ultimate Mortgage Protection Insurance

• Ultimate Total & Permanent Disability Insurance

• Ultimate Waiver of Premium

nib is introducing a simplified application process. The updated system, nibAPPLY, will allow advisers to quote and submit applications for health, life and living insurance products simultaneously, improving efficiencies.

Advisers must complete product training and accreditation to offer the new products. nib offers online modules for both new and experienced advisers.

For a limited time, new customers get a $300 credit on their nib Ultimate Life & Living Insurance policy after paying for their first month or more when processed through nibAPPLY before 30 June 2025.

For a limited time, existing nib health clients can get 10% off their Health Insurance premiums when they bundle Health with Ultimate Life & Living Insurance, when any member on an eligible health policy is issued with a new Ultimate Life & Living Insurance policy (subject to meeting minimum premium criteria). The discount applies to the total health policy premium excluding the policy fee and the offer is available exclusively through nibAPPLY until 30 September 2025.

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Fidelity Life announce premium changes

Effective from 1 April 2025, Fidelity Life are re-rating the premiums for customers in the Adviser channel. Key aspects are below:

• A re-shaping of the pricing curve to reflect a lower risk due to the underwriting selection effect.

• A 5% increase to all lump sum premiums and disability premiums (where the benefit period is 2 or 5 years). And a 7.5% increase to all disability covers with a benefit period of ‘to age 65’ or ‘to age 70’ due to claims experience.

• An adjustment of the rates for all customers.

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Jon-Paul Hale suggests reasons for medical premium increases

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AI becoming more trusted by executives

SAP investigated how US executives were using AI in their organisations and their trust in the technology. They found that AI has become embedded in work practices (with 63% of executives using generative AI daily) and is changing how people do business.

Decisions are being made based on AI insights, with 44% of C-suite executives saying they would override a decision they had already planned to make based on AI insights and another 38% trusting AI to make business decisions on their behalf. 74% of executives had more confidence in AI advice over advice from family and friends. And a massive 55% of executives say in their company AI-driven insights have replaced or bypassed traditional decision-making.

Some common tasks carried out by generative AI tools include:

• Analysing data and making recommendations for decision-making (52%)

• Spotting risk or issues they hadn't previously considered (48%)

• Offering alternate plans (47%)

• Enhancing product development (40%)

• Supporting budget planning (40%)

• Performing market research (40%)

SAP found that there were positive implications on employee wellbeing, with 39% of executives reporting better work-life balance, 38% reporting improved wellbeing and 31% reporting reduced stress.

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Munich Re delve into AI’s impact on Healthcare

As part of Munich Re’s Life Science Report, they have investigated the projected impact of Artificial Intelligence (AI) on healthcare, from disease prevention to diagnosis to treatment as well as the implications for efficiency gains.

While the news is mostly good (improved mortality, better prevention, earlier diagnoses, individualised therapies), it does create some challenges for life and health insurers. With earlier diagnoses and the emergence of new disease classifications, critical illness insurance products will need continuous updating. Claims management and policy development will become more complex, as genetic and molecular diagnosis becomes more routine, requiring a higher level of medical expertise. Overdiagnosis (the detection of diseases that don’t impact on mortality and/or morbidity) and antiselection may become problematic.

AI will also create opportunities for insurers. Insights from accessing and analysing vast datasets including electronic health records, imaging and other biomedical sources will transform the understanding of the root causes of disease and in turn allow underwriting to become more accurate and sophisticated. Wellness interventions will be able to be better targeted and increase in scope and effectiveness.

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Profile of Josh Bronkhorst, CEO of Link Financial Group

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Chubb Life introduce Smart Start, Change of Mind and the ability to delete quotes

Chubb Life have announced the launch of their new “Smart Start” feature, a new “Change of Mind” window for cancellations and withdrawals and the ability to delete quotes in Adviser Hub.

The Smart Start feature will be rolled out from 13 – 20 February.  With “Smart Start”, once underwriting for an Assurance Extra or Assurance Extra Business policy has been completed at standard rates or an Offer of Terms has been accepted, Chubb Life’s systems will initiate a temporary pause period and advisers will receive a “Ready to Issue” email which outlines the planned commencement date, first payment date, payment frequency and premium amount. The default pause period is five working days, after which the policy will automatically issue, though advisers can adjust the pause period to anything from 0 – 5 days. During the pause period, advisers can request changes by replying to the email or calling the New Business team.

From 14 February, cancellation requests will be processed as soon as they’re received and the “Change of Mind” 14-day window will apply, whereby customers will be able to withdraw their cancellation request and retain their cover without going through underwriting again. If customers were to experience a claimable event, they’ll continue to be protected until the end of the change of mind window, or the effective date of the cancellation, whichever is the latest.

Advisers will be able to delete quotes from AdviserHub – individual quotes can be deleted from within the quote itself, or advisers can delete multiple quotes through a bulk delete function on the “retrieve quote” screen.

In other Chubb Life news, AM Best has reaffirmed Chubb Life Insurance New Zealand Limited's Financial Strength Rating of A (Excellent) and Long-Term Issuer Credit Rating of “a+” (excellent) with stable outlooks.

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Partners Life to release Quote for Alteration Phase 2

Partners Life new upgrade to their Quote for Alteration (QFA) digital tool is coming soon. There’s a handy tutorial here. The upgrade will provide a fully digital process, where advisers can apply for increases and alterations for existing clients in the same way they do for new clients within QFA. QFA applications will be available on Partners Protection Plan and Business Protection Plan policies; Funeral Plan, Essential, Heritage and Loancare policies cannot be serviced online through QFA.

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