I was so delighted when I found this old article, because it was one I read some time ago, and had forgotten where it was located. Best of all, it is a really good article on a subject that is often so badly treated. The valuable role of self insurance, by the constant Mary Holm.
The world's been changed by interactive media. Imagine having a relationship with someone without conversation. Difficult.
Yet financial services companies still talk about relationship marketing and yet have no real conversations.
Consumers are ready - it is the industry that lags. The proof? This post. It may be a poky screen, but, courtesy of my new JAMin telephone I am mo-blogging real-time, and loving it. Soon you will be safe nowhere!
Mary Holm continues her inexplicable crusade to create more unwilling converts the the proposed changes to the taxation of international investments in this article. Several things lead me to use the term inexplicable - Holm fails to explain what great problem this proposed change is meant to solve, and why this solution - for preference over the others proposed - is best.
Instead Holm provides us with a comparison of the effect of the tax change on two types of funds -
- International index funds (very popular with investors, and suffer under the system)
- International active funds (not very popular with investors, and will enjoy a modest improvement in tax treatment).
Yet she completely ignores that the greater problems with our tax system are probably around investment in property. She completely ignores the effect of the proposed tax changes on investors that hold international shares directly - and they are not all held by John Key. Lots of kiwis hold and trade international shares. When we worked with the National Bank to develop their online share-trading system we knew this was a crucial part of its functionality - and it has been a major factor in that system becoming the market leader.
The fact is that this is a band aid fix of a band aid fix. The current FIF regime is a nonsensical piece of a tax system. Within that system it is a lesser piece of nonsense. Going to the expense and effort of prioritising it above the other areas, and then replacing it with something equally non-sensical is simply a waste of time and money.
Defending it is a waste of Holm's talent. Especially given the comment in an earlier article by Holm that:
"All in all, I think the status quo is better. "
Why not make that message clearer, louder, and longer, and we can move towards more sensible proposals?
Diana Clement on the other hand, in an article buried on page 10 (which you can read here) of the same section of the paper has discovered yet another unintended consequence of the new tax - a disincentive to migrants.
...but Mary Holm thinks that by increasing tax a lot on large numbers of investors in passive funds and decreasing tax a small amount on a small numbers of investors in active, NZ domiciled, international share funds makes this a tax benefit that has been 'misrepresented'.
How not to sell loadings, as identified by Ronald Verzone of United Underwriters.
"He believes that in order to get consumers to sign insurance
applications, too many advisers quote unrealistically low rates. "Perhaps up to
40% of those who apply for coverage may not qualify for a company's standard
rate. When an application is processed and all relevant medical information has
been reviewed, it comes back at a higher cost than the original quote." Then the
adviser has to go back to the customer with the bad news. While advisers can try
to blame it on the underwriter, that does not stop the client feeling betrayed,
disappointed, unhappy and angry. It is not very professional either. As well as
not serving the best interests of the consumer, it ultimately does a disservice
to the industry and the adviser. "The customer does not get the protection, the
adviser loses a sale as well as the customer's trust, and the industry gets a
Hat tip - Brian Klee.
Brian Klee just dropped me a line talking about his special risks service. Brian has a gift for packaging and managing special risks you can check out some aspects of his service at www.srisks.co.nz or give him a call on 0800 774 757.
TOWER shares have consistently performed well since the arrival of its new corporate heavyweights on the share register and Jim Minto at the helm. Attentive readers might recall that I bought a few hundred shares when they were really, really low, as an example of performing a share trade online. Now I wish I had bought more. A recent article highlights a substantial rise over the last few weeks which has little corporate news to support it. It is obviously fuelling speculation.
If you really are a committed member of the financial services community it would pay you to know your neighbourhood. Hence a friendly, well-here-they-are, sort of knock on the web door of Finsec for you: Link.
This article should be required reading for understanding the new marketing environment. Any company which does not have a strategy for:
- Integrated content creation and re-use infrstructure
- A porous knowledge management structure (because without allowing itself to be refreshed and regenerated knowledge becomes old too fast...)
- CRM's that record all interactions with client's allowing a conversation to develop
- Distributed content creation (staff, managers, clients)
- Plans to engage content creators in the new media space
- An understanding that the game in communications has shifted from the precision of the 'mass media' 'set piece' to 'open-ended' and 'fallible' - yet self-correcting - 'conversations'.
The critical point might be summed up by this quote: [mainstream media] “don't get how subversive it is to take institutions and turn them into conversations”. That could apply just as well to financial services marketing.
You can find out about the elements of KiwiSaver that are being considered in the UK by following the link to this recent report below.
Pensions Policy Institute (PPI) publishes its latest report NPSS policy and design
choices. This paper explores the lessons for UK's
proposed National Pensions Savings Scheme from the only other planned national
auto-enrolment scheme: KiwiSaver in New Zealand.
You can download the paper at: