A one page personal risk plan summary?

In a recent newsletter we mentioned that we were in the process of developing a one page personal risk plan summary for Advicemonster (our system for fact-finding, needs analysis and producing a statement of advice). If you would like to see our draft of this development - please email one of the team at info@quotemonster.co.nz 


Legal and regulatory update for the life and health insurance sector

21 Oct 2021 – Submission closing date on the Digital Identity Services Trust Framework Bill set as 2 Dec 2021. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_116015/digital-identity-services-trust-framework-bill

22 Oct 2021 – Government announced an Enhanced Covid-19 business support package. https://www.treasury.govt.nz/news-and-events/news/enhanced-business-support-package-announced


FYI: Are you looking to compare Funeral plans?

Here is a handy hint for Research and Advicemonster subscribers! 

If you're looking to compare a Funeral Plan, you can access our static ratings and policy documents directly on Quotemonster.

Once you've logged in, click the Research Tools button, the the purple Research Tools tab and scroll down to "Funeral Plans" 

Funeral

 


Legal and regulatory update for the life and health insurance sector - updated

20 Oct 2021 - The Digital Identity Services Trust Framework Bill was read a first time and referred to the Economic Development, Science and Innovation Parliamentary Select Committee with report back due by 19 April 2022.

https://www.beehive.govt.nz/release/govt-helps-protect-new-zealanders-digital-identities

https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_116015/digital-identity-services-trust-framework-bill

20 Oct 2021 – Department of Internal Affairs issued a reminder regarding AML/CFT obligations following release of the “Pandora Papers.” https://www.dia.govt.nz/AML-CFT-Reminder---Pandora-Papers

20 Oct 2021 - The third reading of the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Bill was completed in Parliament.

https://www.beehive.govt.nz/release/nz-passes-world-first-climate-reporting-legislation

https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_109905/financial-sector-climate-related-disclosures-and-other

20 Oct 2021 – FMA media release outlining its expanded role as a result of the passage of the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Bill. https://www.fma.govt.nz/news-and-resources/media-releases/climate-related-disclosure-fma-responsibilities/

Oct 2021 – External Reporting Board released a consultation on climate related disclosures focused on the proposed Governance and Risk Management sections, Aotearoa New Zealand Climate Standard 1: Climate-related Disclosures (NZ CS 1)., with submissions closing on 22 November 2021. The Board is also working on the proposed sections for Strategy, and Metrics and Targets and intend to issue those for consultation in March 2022. https://www.xrb.govt.nz/extended-external-reporting/climate-related-disclosures/consultation-and-engagement/governance-and-risk-management-consultation-document/

20 Oct 2021 – The Financial Professional Services Trading Advice Transparency Bill was introduced to Parliament as a member’s bill, proposing to prevent financial advisers who recommend that a third party take over the management or disposal of a business or its assets from performing such a function themselves. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_116381/financial-professional-services-trading-advice-transparency


Cigna multi-benefit discount is here to stay, and more daily news

Cigna has announced that the promotional multi-benefit discount will become a permanent offer. Cigna has highlighted that since the multi-benefit discount promotion launched last September, Cigna has received positive feedback. The multi-benefit discount is being offered to new customers as well as existing customers who were quoted and issued policies from 15 September 2020 to 17 October 2021. The multi-benefit discount can be used alongside the current good things come in twos offer that is available to advisers until 17 December.

“We’ve made our multi-benefit discount permanent and we’ve made it even better.

Since its release in September last year, we’ve had incredible feedback from the market on the difference the discount has made for customers taking out new cover.

 

Not only have we removed the age eligibility criteria, the permanent discount on Assurance Extra will now provide a 5% discount to customers taking Life Cover with one other qualifying cover and a 7% discount to those taking Life Cover with two other qualifying covers. The discount will be offered to all new business quoted and issued after 18 October 2021.

 

The discount can also be applied in conjunction with our Good things come in twos offer which is available to Advisers until 17 December 2021. This means not only will your new customers receive a multi-benefit discount on their cover, but they’ll also get the first two months of their cover, on us.  

 

The improved multi-benefit discount is not only for new customers, we’ll be passing it back to policies quoted and issued from 15 September 2020 to 17 October 2021 that were previously eligible for a discount under our campaign. The new levels will apply at their next policy anniversary.

 

This is just one of the ways we’re supporting customers with good value insurance solutions. For more information on the permanent discount visit cigna.co.nz/multi-benefit-discount”

 

In other news

Cigna: definitions and benefits across our Assurance Extra, Business Assurance, Business Extra and Agribusiness Extra Covers have been updated

Cigna: Business Assurance policy wording has been simplified and is now in WriteMark-approved plain English

FSC: ReGenerations Reimagined kicked off on Tuesday

Financial Advice: spots available on the ethics courses


Legal and regulatory update for the life and health insurance sector

19 Oct 2021 - Minister of Commerce and Consumer Affairs, Hon David Clark, September 2021 diary released with the following potential financial services sector related meetings noted:

  • 1 Sept 2021 – NZ Fin-Ed Centre, Massey University (Dr Pushpa Wood and David Kneebone)
  • 14 Sept 2021 – Meeting with the Council of Financial Regulators (CoFR) (Adrian Orr (Reserve Bank Governor), Rob Everett (CE Financial Markets Authority), Caralee McLiesh (Secretary of the Treasury), Carolyn Tremain (CE MBIE), Adrienne Meikle (CE ComCom), Liam Mason (General Counsel at the FMA), Hon Grant Robertson)
  • 30 Sept 2021 - Meeting with Simplicity NZ Ltd (Justin Lester, David Kneebone, and Sam Stubbs)

https://www.beehive.govt.nz/sites/default/files/2021-10/Hon%20Dr%20David%20Clark%20Proactive%20Diary%20Release%20September%202021_1.pdf

19 Oct 2021 - The committee stage of the Financial Sector (Climate-related Disclosures and Other Matters) Amendment Bill was completed in Parliament. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_109905/financial-sector-climate-related-disclosures-and-other

20 Oct 2021 - The Financial Markets Authority set 30 September 2022 as the target date by when all transitional financial advice providers should apply for their Class 1 or Class 2 full licences. For Class 3 licence applicants, the target date is 30 June 2022. https://www.fma.govt.nz/news-and-resources/media-releases/fmtarget-dates-for-fap-full-licence-applications/

20 Oct 2021 - The Reserve Bank of New Zealand announced a review and consultation on its policy for branches of overseas banks, with submissions closing on 2 March 2022. https://www.rbnz.govt.nz/news/2021/10/review-of-overseas-bank-branches-underway


Legal and regulatory review for the life and health insurance sector

19 Oct 2021 – The Australian Prudential Regulation Authority (APRA) has released its Life Insurance Claims and Disputes Statistics publication, covering a rolling 12-month period from 1 July 2020 to 30 June 2021. https://www.apra.gov.au/news-and-publications/apra-and-asic-publish-latest-data-on-life-insurance-claims-and-disputes-4

19 Oct 2021 - Ombudsman’s 2020-2021 Annual Report published together with the Ombudsman’s Strategic Intentions for 1 July 2021 to 30 June 2026. https://www.ombudsman.parliament.nz/news/ombudsmans-2020-2021-annual-report-published


Southern Cross on working from home, and more daily news

Southern Cross has published the findings from the 2021 Southern Cross Health Insurance – BusinessNZ Workplace Wellness Survey. The survey respondents were from all over the country, with 14% of respondents based in Auckland, 13% based in Wellington, and 13% based in Canterbury. The survey has revealed since the COVID-19 pandemic began 34% of organisations surveyed reported that they are more open to the idea of employees working from home, even outside of strict lockdowns. The survey highlighted that 73% of organisations reported that employees felt isolated while working from home, and 66% of respondents reported that more employees experienced higher levels of general stress in 2020. Click here to read more

Screen Shot 2021-10-18 at 4.22.35 PM

 

In other news

Loud Shirt Day - Deaf Children Awareness Day will be on 29 October

Fidelity Life: in collaboration with business leadership coach Jennifer Myers, building a resilient business is now available in Learning HQ

FMA: Rob Evernett's new role revealed

Fidelity Life:

Screen Shot 2021-10-18 at 3.55.24 PM

 

 


Legal and regulatory update for the life and health insurance sector

15 Oct 2021 – IRD released a consultation on reporting requirements for domestic trusts, with submissions closing on 15 Nov 2021. https://taxpolicy.ird.govt.nz/publications/2021/2021-ip-reporting-requirements-domestic-trusts

18 Oct 2021 – RBNZ announced webinars on its Future of Money issues papers, as follows:

  • Future of Money – Stewardship
    • Thurs, 28 Oct, 2-3pm
    • Tues, 2 Nov, 7-8pm
  • Future of Money – Central Bank Digital Currency
    • Thurs, 28 Oct, 7-8pm
    • Tues, 2 Nov, 2-3pm

https://www.surveymonkey.com/r/Future-of-money-webinars


nib offer complementary mental health cover, and more daily news

nib New Zealand has launched the new complementary mental health cover that is available to Ultimate Health and Ultimate Health Max members who purchased their policies from 1 October 2021. Eligible customers will have access a consultation with a psychologist or psychiatrist without the consultation being linked to a hospital claim. The new mental health cover replaces the complementary Ultimate Health and Ultimate Health Max travel insurance cover that was offered in the past.

“nib New Zealand (nib) has launched a new complementary Mental Health cover for eligible Ultimate Health and Ultimate Health Max members to provide greater access to mental health services and help Kiwis continue to keep on top of their health and wellbeing.

The new mental health cover is available to members who are covered under a new nib Ultimate Health or Ultimate Health Max policy purchased from 1 October 2021 and provides up to $2,500 of consultations annually with a registered psychologist or psychiatrist on referral from a GP. The complementary cover will initially be available to members for one year.

nib New Zealand Chief Executive Officer, Rob Hennin said the health insurer was pleased to help improve access to mental health services and support the one in five people1 across the country who experience a mental illness each year.

“More and more Kiwis are seeking vital mental health services and we want to ensure eligible members are provided the opportunity to access such care, when they need it,” Mr Hennin said.

“The new Mental Health cover offers eligible members greater access to treatment as they can access a consultation with a psychologist or psychiatrist without it needing to be linked to a hospital claim such as cancer or cardiac services. Those members only need a referral from their GP to claim and they have the flexibility to choose their own health provider,” he added.

The introduction of nib’s mental health cover replaces the previous complementary Ultimate Health and Ultimate Health Max travel insurance cover. nib travel insurance sales have stopped while nib pursues new underwriting arrangements for its travel insurance business across Australia and New Zealand.

Mr Hennin said he believes the new cover will be well received by members who may need additional support for their mental wellbeing.

“As we move towards our ambition of health partner, we want to ensure our members feel supported and empowered to be proactive when it comes to taking care of their health and wellbeing. And, with varying lockdowns and COVID-19 restrictions likely to have an impact on the mental health of our community we believe the introduction of our Mental Health cover is timelier than ever,” he said.

nib’s new Mental Health cover is also available to existing members with an Ultimate Health and Ultimate Health Max policy that commenced from 21 April 2018, with the complementary mental health cover commencing following the renewal of their Ultimate policy from 1 December 2021.

For more information on nib’s Ultimate Health cover advisers should speak with their Adviser Partner Manager. ”

In other news

Fidelity Life: Fidelity Life has revised customer documents to simplify the language and made changes to policy wordings terminology

Fidelity Life: enhancements to CPI option and Indexation option. This will apply to new business issued on the amended wordings.

Fidelity Life: survivor's income cover options have been simplified

Fidelity Life: class 1-4 definition of ‘total disability’ has been updated for income protection-type covers

FSCL: FSCL sees spike in overall complaints


Quality Product Research - new zoom training sessions added for Quotemonster & Advicemonster!

We have scheduled the following training sessions for November & December! 

Make the most out of your time at home or refresh your knowledge by joining one of our sessions below:  

Quotemonster Basic (Introductory session - great for new users or for a refresher) 

  • Wednesday, 10 November 2021 11:00 am-12:00 pm 
  • Thursday, 25 November 2021 11:00 am-12:00 pm 
  • Thursday, 16 December 2021 11:00 am-12:00 pm 

Quotemonster Deep Dive (great for advanced users who use Quotemonster on a regular basis) 

  • Thursday, 18 November 2021 11:00 am-12:00 pm 
  • Thursday, 9 December 2021 11:00 am-12:00 pm 

Advicemonster (great for those who would like to learn more about our Statement of Advice (SOA) subscription) 

  • Thursday, 4 November 2021 11:00 am-12:00 pm
  • Thursday, 2 December 2021 11:00 am-12:00 pm

Please feel free to email us on info@quotemonster.co.nz with the session you'd like to attend and we will organise to send through the zoom link 


Quality Product Research: Proposed rating for Aplastic Anaemia

Introduction

Were back with another item analysis - this time for Aplastic Anaemia.

Please find our proposed sub-items below.

Sub-items rating review

Aplastic

Notes

A defined treatment option is a commonality across all insurers, excluding Asteron Life who have a more open definition when compared to their competitors. We have included a sub-item for those insurers who require diagnosis from a medical specialist along with a deduction to those that do not offer an additional treatment option. Aplastic Anaemia is a lowly weighted item in our database; however, our proposed rating aims to emphasise the difference in the definition between insurers, rather than focusing too much on ranking them from best and worse.  

Your feedback

We value getting your feedback on how these wordings are being applied to claims you may be aware of. Please email us with details of any recent claims to help us update our understanding.

Doreen Dutt, Research Analyst, Quality Product Research Limited, researcher@qpresearch.co.nz


Fidelity Life announce new Solutions and Services team, and more daily news

Fidelity Life has announced the creation of the Solutions and Services team. The team will be led by Trecia Brown in her new role of Head of Solutions and Services. The Solutions and Services team will be responsible for delivering advice solutions, professional development, and the Building Better Businesses programme.

 

Fidelity Life is transforming its support for advisers with the creation of a new team delivering solutions across the areas of advice (including advice-tech) and professional development, as well as an expansion of the company’s market-leading Building Better Businesses programme.

 

The new Solutions and Services team will be headed by the widely experienced Trecia Brown. Drawing on her 30-year career in financial services, Trecia steps up from her current position as Head of Professional Development to become Head of Solutions and Services.

 

Fidelity Life Chief Sales and Service Officer Bronwyn Kirwan says Fidelity Life is on a mission to deliver best-in-market support to advisers.

 

“We’re making great progress with our customer-led transformation, and that includes expanding our adviser and partner propositions so together we can help more New Zealanders get the benefits of insurance protection. 

 

“Our new Solutions and Services team recognises advisers’ needs are constantly evolving as the broader business environment changes. Taking our cues from a range of stakeholders including customers, advisers and regulators, as well as from emerging technologies, our intention is to help advisers stay one step ahead,” says Bronwyn.

 

One of the first cabs off the rank is a new video series specifically for financial advice businesses and designed in conjunction with well-known business and leadership coach Jennifer Myers.  

 

“Working on your business is just as important as working in it, and this new video series will help advisers build and maintain a resilient business,” says Trecia. 

 

“As well as covering key topics like setting business goals, identifying target markets, and building your personal brand, we also look at finessing advisers’ softer skills which are often overlooked as an essential ingredient to running a successful business.”

 

Meanwhile, Fidelity Life’s Building Better Businesses programme is also set for further expansion, with new modules in the pipeline including business diagnostics, behavioural economics and benchmarking.

 

Today’s announcement follows the unveiling of Fidelity Life’s new look Strategic Alliances team last week and continues the momentum of the firm’s customer-led transformation.

 

In other news

Cigna: pay later option available on eApp for customers that have been referred for further underwriting

 

Financial Advice: Financial Advice submitted on the Advertising Standards Authority Consultation on the new draft Financial Advertising Code

 

FSC: 5 sleeps until ReGenerations Reimagined

 

October 15 is Global Handwashing Day

 

World Food Day will be on 16 October 

 

World Osteoporosis Day will be on 20 October


AIA report on common preventable non-communicable diseases

AIA NZ has published a report on risk factors that lead to the most common preventable non-communicable diseases that result in death. AIA found that New Zealanders underestimate the impact of non-communicable diseases. AIA uncovered that New Zealanders thought that non-communicable diseases accounted for 10% - 50% of deaths when non-communicable diseases actually cause 90% of deaths.

AIA

Click here to read more

"A new report from AIA NZ has uncovered the five risk factors that lead to the five most common preventable non-communicable diseases which account for more than 90 percent of New Zealand’s deaths.

The findings, rooted in research originally founded by the United Nations, demonstrate how many of the world’s deaths are caused by lifestyle factors that contribute to preventable but deadly diseases.

Coined 5590, the five risk factors of physical inactivity, poor nutrition, smoking, excess alcohol and environment interaction, contribute to five common non-communicable diseases: cancer, diabetes, respiratory disease, heart disease and poor mental health.

The widespread impact of non-communicable diseases

Further local independent research conducted by AIA NZ shows that Kiwis vastly underestimate the impact non-communicable diseases have in the community. Half of Kiwis think non-communicable diseases account for only 10-50% of deaths in New Zealand each year. In reality these diseases account for 90 percent.

Nick Stanhope, AIA NZ Chief Executive, says the case for focusing on health promotion and preventing non-communicable diseases is stronger than ever.

“Non-communicable diseases are the leading cause for preventable death not only in New Zealand but across the globe. In 2019, 74 percent of the world’s total deaths were caused by non-communicable diseases. Furthermore, non-communicable diseases took seven places in the top 10 causes of death,” says Stanhope.

“Covid-19 has been on our minds for the past year, with more than a third of Kiwis thinking Covid-19 was responsible for the most deaths globally in 2020. However, the more insidious threat is non-communicable disease.

“At AIA NZ, we believe it’s our social responsibility to move away from simply being a payer of claims, to partner with Kiwis to live Healthier, Longer, Better lives.”


Legal and regulatory update for the life and health insurance sector

12 Oct 2021 – The FMA released advice that the Ministry of Justice commenced a statutorily required review of the AML/CFT Act on 6 Oct 2021, with the MOJ releasing a consultation document with submissions closing on 3 Dec 2021. https://consultations.justice.govt.nz/policy/aml-cft-review/

12 Oct 2021 – IRD released a commentary on the Supplementary Order Paper No. 64 to the Taxation (Annual Rates for 2021–22, GST, and Remedial Matters) Bill, containing proposals aimed at limiting the deductibility of interest incurred for residential property investments. https://taxpolicy.ird.govt.nz/publications/2021/2021-commentary-sop-argrm-bill

13 Oct 2021- FMA issued guidance on the advertising of financial products. https://www.fma.govt.nz/news-and-resources/media-releases/fma-issues-guidance-on-advertising-of-financial-products

13 Oct 2021 – RBNZ issued a consultation seeking views on its enforcement framework with submissions closing on 24 November 2021. https://www.rbnz.govt.nz/news/2021/10/views-sought-on-enforcement-framework

13 Oct 2021 - 13 Oct 2021 – MBIE advised that the Minister of Commerce and Consumer Affairs has issued the Updated Addendum to the Responsible Lending Code: COVID-19. The addendum elaborates on and offer guidance on how lender responsibility principles and lender responsibilities may be implemented by lenders while dealing with borrowers who have been impacted by COVID-19. https://www.mbie.govt.nz/dmsdocument/17505-updated-addendum-to-the-responsible-lending-code-covid-19

 

 


Fidelity Life reveal financial results, and more daily news

Fidelity Life has revealed that the underlying profit for the year ended 30 June 2021 was $22.5 million. Fidelity Life has identified an increase in net premium revenue, strong new business, less policy lapses, and expense management as key drivers. CEO Melissa Cantell has said that she is pleased with Fidelity Life’s achievements and is looking forward to the future. 

“Fidelity Life’s core business continued to perform well in the 2021 financial year as it boosted transformation spend and remained resilient against the economic impacts of COVID-19. 

Underlying profit for the country’s largest locally owned life insurer for the year ended 30 June 2021 rose to $22.5m from $20.3m in 2020. Key drivers were a $6.1 million uplift in net premium revenue off the back of strong new business, fewer than expected policy lapses and robust expense management. 

 

The company paid $130.8 million in claims to its customers compared to $139.7 million in 2020. 

Total comprehensive income fell to $4.3 million from $17.9 million in 2020, reflecting a total of $9.3 million invested in key transformation projects (net of tax), including the firm’s new technology platform and the proposed acquisition of Westpac Life. In addition, a sharp rise in government bond rates had a $7.3 million impact (net of tax). 

 

Chair Brian Blake said the $400 million Westpac Life deal was one of the most significant events in the company’s history and, once completed, would see Fidelity Life welcome Ngāi Tahu Capital as a major shareholder alongside the NZ Super Fund. 

“As well as strengthening our New Zealand-owned credentials and providing greater access to capital, having two iconic New Zealand investors on our share register sends a strong signal to the market about the quality and potential of Fidelity Life.” 

CEO Melissa Cantell, who started at Fidelity Life in January 2021, said she was pleased with the firm’s achievements and was looking to the future with confidence. 

 

“We’ve worked hard this year and put strong foundations in place. We continued to invest in our transformation, while at the same time delivering an underlying result which shows our core business of providing life insurance to New Zealanders is performing well. 

“Looking to the future, there’s a lot to be excited about as we work towards our aspiration to reimagine life insurance. Completing our technology build and the game-changing acquisition of Westpac Life will be key, as will ensuring we maintain our relentless focus on our customers.” 

 

In other news

TAP: TAP offers OATs to independent advisers

Partners Life: Partners brings in actuarial expert

From Insurance Business Mag: Full licensing a “unique opportunity” to think about business future


Legal and regulatory update for the life and health insurance industry

11 Oct 2021 – The FMA, while issuing a public censure of a derivatives issuer (FIRMA NZ), advised that it is in the process of conducting an in-depth monitoring review of the Derivatives Issuer industry, following a sector risk assessment last year. The results of the review will be collated for consideration of future industry guidance and/or standard condition review. While the review has been deferred due to COVID-19 Alert Level changes, the FMA expects to conclude the review before the end of 2021. https://www.fma.govt.nz/news-and-resources/media-releases/censures-firma-nz-breaches

11 Oct 2021 – Two Bills introduced into Parliament

  • Data and Statistics Bill - intended to repeal and replace the Statistics Act 1975

https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_116197/data-and-statistics-bill

  • Retail Payment System Bill - introduces a range of measures to promote competition and economic efficiency in the retail payment system

https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_116198/retail-payment-system-bill

11 Oct 2021 – Council of Financial Regulators noted the passing of its tenth birthday with recruitment of its first adviser, having its role recognised in legislation, and completing an updated Memorandum of Understanding between its members. https://www.cofr.govt.nz/news-and-publications/cofr-celebrates-significant-milestones.html


Partners Life approve use of electronic signatures, and more daily news

In response to increasing demands to accept electronic signature services Partners Life has announced that they will begin accepting documents with electronic signatures that are submitted through a range of e-signature services. Partners Life may request further information if a submitted document doesn’t clearly show the electronic service used. Additional information may include the document’s audit trail to ensure one of the approved services have been used.

“We have received an increasing number of requests regarding the acceptance of electronic signature services. Electronic signature services provide a safe, auditable means for clients to sign documents digitally.

We can confirm we will accept documents signed using the following services:

  • 2Shakes
  • RightSignature
  • DocuSign
  • AdobeSign
  • HelloSign
  • NitroSign
  • Formstack
  • DocHub
  • PandaDoc

If a submitted document does not display the electronic service used, we may request further information, such as the document’s audit trail, to be certain it was signed using one of the approved services. Please note Memorandum of Transfer forms cannot be signed using electronic signatures and we still require a physical signature on these forms.”

In other news:

FSC: ReGenerations Reimagined will begin on 19 October at  3.30pm

Partners Life: Expressions of interest now open for 3 day New Adviser Training Course

AIA: Last days for adviser wellbeing survey feedback

The Co-operative Bank: Mark Wilkshire will join as the new CEO on 25 January 2022