« April 2021 | Main | June 2021 »

Fee-charging options for holistic financial planning services

Tony Vidler directs us to this article by Alan Moore of XY Planning Network. It contains a comprehensive list of all the main methods for charging fees in the investment and general financial advice sector. There are some gems to be picked up for those that work in focused insurance businesses, or run an advice business in which insurance, home loans, and KiwiSaver are significant components. The establishment of a good fee schedule and methodology provides a valuable hedge against concerns about the fee model. Having one does not mean one cannot support the other - you can offer fee options as alternatives to commissions and also hybrids of the two. Do check it out. 


Cigna on latest campaign, and more daily news

Cigna has revealed that the latest campaign, Insurance for living marketing campaign, has achieved great results so far. The campaign was launched in the hopes of helping New Zealanders understand Cigna products. Over two million New Zealanders have been reached with the TV advert. Cigna has reported that online searches have increased with a special note on the number of searches around income protection insurance. Head of Strategy & Marketing Simon Tohill has said that the team are pleased with the outcomes so far and are pleased to help start conversations regarding financial advice. The campaign is set to run until September. Cigna has announced that they will be conducting ongoing research to understand how consumer perceptions of Cigna change and to see how the campaign tracks. 

“After a month on screen, on air and online, Cigna’s Insurance for living marketing campaign is showing positive results.

The campaign has reached an audience of over two million New Zealanders via TV advertising and there’s been a lot of interest from consumers. Online searches are up across the industry with a large increase in search for the term income protection insurance – one of the three products mentioned in the campaign alongside life and critical illness.

Simon Tohill Cigna’s Head of Strategy & Marketing says that the team are pleased with progress so far. “We’re really excited to be in market and helping to stimulate a conversation with Kiwis about the positive outcomes of seeking financial advice and protecting what matters most to them.”

The campaign’s goal is to help New Zealanders understand that Cigna offers products such as Income Protection, Critical Illness and Life Insurance alongside the company’s more well-known funeral cover offering.

To do this Cigna has created the character Dave Davidson. He’s a likeable guy, who’s living the dream. He has a house, a tween, a teen and an awesome wife. He’s also pretty risk-averse. But since he talked to his financial adviser and took out insurance with Cigna he’s started living a little more dangerously.

“Through Dave’s adventures, we’ll we’re able to demonstrate how having Cigna insurance by your side can provide financial peace of mind and have a positive impact on your everyday life,” says Simon.

The campaign runs until late September on TV, TV on Demand, social media, digital display and radio.

Following the launch of the campaign, Cigna will be conducting ongoing research to see how the campaign is tracking and how consumer perceptions of Cigna change.”

 

In other news

Cigna: Ian Greig to join Cigna from Asteron Life as a South Island Business Partnership Manager later this month

Cigna: Cigna Travel Insurance now offers covers for COVID-19 if customers are traveling within a New Zealand Government approved travel bubble, but conditions apply

Cigna: From 1 June 2021 Cigna will not accept cheque payments 

Cigna: Advisers that had a login for the previous Adviser Hub received an email with their new username on 12 May

Asteron Life: applications submitted through AsteronConnect  will go into the weekly draw until 4 June 2021 to win a $200 voucher to support local restaurants


Partners Life on benefits of private health care, and more daily news

Partners Life Managing Director Naomi Ballantyne has shared some insights into the benefits of medical insurance and private health care. Ballantyne has said the difference in available treatments, waiting times, and procedure time limits in public and private health care can be vast. Ballantyne has said that the key benefits of medical insurance are having individual-specific treatments available and hospitals not bulk buying treatments. Ballantyne has expanded by saying that unlike public health care providers, the private system offers every option available, with a focus on options more specific to each circumstance. Ballantyne has noted that the only limitation to private health care is ensuring treatments are Medsafe approved and approved by specialists.

“New Zealand’s public health system takes care of millions of Kiwis each year, but when it comes to treating more complex illnesses, the benefits of having private health insurance are often not well understood – and, according to Partners Life MD Naomi Ballantyne, the difference in available treatments can be huge.

The limitations of the public system include the types of drugs it has access to, waiting times, and the time limits set on certain procedures - all of which Ballantyne says can make a significant difference to somebody’s treatment process, particularly when dealing with a physically and emotionally difficult illness, such as cancer.

She said that access to individual-specific treatments is one of the key benefits of having medical insurance, as these types of treatments are not usually subsidised and can be expensive to access without an insurer’s help.

“The public system ‘bulk-buys’ their treatments, whereas the advantage of the private system is that it doesn’t need to do that,” Ballantyne said.

“In the private system, you are offered every option that you can get, and these options are often more specific to an individual’s circumstances rather than everyone just being given the same type of chemo, for example. In the private system, the doctors can offer drugs that are specific to a person who has a certain type of illness at a specific stage, and if you have private insurance, that’s all funded.”

“As a private insurer, we are not limited to whether something is subsidised or not,” Ballantyne explained.

“We’re only limited to whether it is Medsafe approved and whether your specialist has recommended that for you. That’s a huge difference between someone who is just given a generic treatment through the public system, or someone who has to sell off their assets to try and pay for a specific drug that isn’t subsidised.” Click here to read more

In other news

FSC: FSC Consumer Research to be launched 15 June 2021

ACC: 95% of sexual abuse claims fall through ACC system

FSC: FSC and Bazzacam: Sharpen Up Your Customer Communications


Legal and regulatory update for the life and health insurance sector

19 May 2021 - Overseas Investment Amendment Bill (No 3) completed third reading in Parliament. https://www.beehive.govt.nz/release/overseas-investment-reform-protects-strategically-important-assets

20 May 2021 – FMA announced the appointment of Liam Mason as General Counsel. https://www.fma.govt.nz/news-and-resources/media-releases/fma-appoints-liam-mason-as-general-counsel/

20 May 2021 – Good Returns reported that the Financial Service Providers Register has already issued notices advising of the intention to de-list advisers who have not linked their registration to a financial advice provider or authorised body under the new regime, with Financial Services Complaints Ltd issuing an alert advising of the steps to take to complete the required linking. Relevant weblinks are https://www.goodreturns.co.nz/article/976518650/fspr-deadline-causes-panic.html and http://www.fscl.org.nz/alert-1

20 May 2021 – Treasury released the Government Budget 2021 documents. https://www.treasury.govt.nz/publications/budgets/budget-2021


FSC announce conference early bird tickets, and more daily news

The FSC has announced that early bird tickets for September’s ReGenerations Conference are now available. The FSC has highlighted that the conference will include three different workstreams and six pathways to allow attendees to hear key up-to-date information relevant to their specialities. It has been announced that the conference will also include political, industry and keynote speakers. 

 

“EarlyBird ticket sales for the FSC's flagship conference are now on sale. Great content drives great conferences and we have a stellar line-up of political, industry and keynote speakers which we will be releasing over the coming weeks.

 

The conference is structured to include three different workstreams and six pathways across the two day event, giving everyone an opportunity to hear key up-to-date information relevant to their speciality and challenge how we deliver insurance, investments and KiwiSaver to consumers.” Click here to register

 

 

In other news

Accuro: Not-for-profit insurer Accuro celebrates 50 years in business

From Good returns: Slow to adapt and fixed in our ways - the problems with life cover

Russell’s piece from Good returns: Let's give TPD a second look

FSC: Get in Shape: Session 16 - Client advice process and documents


Quality Product Research: Addition of AIA Cancer Care

We have recently added AIAs Cancer Care to our product range on Quotemonster. Cancer Care is a standalone, specialised product covering cancer conditions only (one of the first available in New Zealand).

As the costs related to Cancer continue to rise in our country, AIA has aimed to provide an affordable product with no minimum age requirement. Cancer Care is only available with a zero-excess option. However, should not be used as a top up cover with Private Health, and it is best to seek guidance from the insurer if the client has existing health cover with another provider.

You can select Cancer Care in the Product Settings screen and we have included a warning to ensure that advisers are aware of the pricing and research ratings when comparing to a comprehensive health product. 

Capture

Please email us should you wish to discuss this further or would like to provide feedback.

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


QPR v14.2 is now live!

The QPR team have been working hard to implement changes to our website and Research in order to keep up with the changes in our fast-paced industry. 

Recent updates to Quotemonster: 

  • Quoting to reflect Life buyback is in-built for Asteron Life (TPD only) 
  • Enabling Class 5 TPD Accelerated Any Occupation for Asteron Life (occupation needs to be verified with the insurer)
  • Previously the QPR package score was based on the main client, we have now separated this so that each client will show their own package score according to the selected benefits. The star rating is an average of all the clients in the quote.   

Package

  • New drop-down menus option in “Settings”
  • To update your Product or Occupation Setting, click “Quote Settings”
  • To update your Adviser Profile or Security Setting, click “User Settings"
  • To update your Needs or SOA Setting, click “Needs Analysis Settings” (only available to Advicemonster subscribers)

Menu

  • For Advicemonster users, we have made a couple of changes to the SOA report. We have improved the formatting in the summary recommendations table to make it easier to edit and stopped TPD from appearing in the product options table when TPD is not selected. 
  • New “Service Status” feature located at the bottom of your Quotemonster screen. This will provide updates on any upcoming maintenance or current technical issues with our website

ServiceRecent updates to QPR Research:

  • AIA Cancer Care rated (select this in your Product Settings Screen)

Capture

  • Cigna – Assurance Extra policy document 12/04/2021 loaded (no rating changes applied)
  • Westpac – Term cover policy document 15/03/2021 loaded
    • Life - no rating changes applied
    • Trauma  - rating changes applied

Rating reviews:

  • Life
    • Inflation Adjustment – re-rate for all companies (rating added for MAS)
    • Special Events Increase – re-rate for all companies
  • Trauma
    • Exclusions re-rate for Co-Operative Bank
    • Inbuilt Childs Trauma – re-rate for all companies
    • Diabetes mellitus (adult) renamed to Severe Diabetes – re-rate for all companies
    • Benign brain and spine tumour – re-rate for all companies
    • HIV- Medically Acquires – re-rate for AIA
    • Rheumatoid Arthritis – re-rate for Partners Life
    • Inflation Adjustment – re-rate for all companies
    • Cancer Critical – minor re-rate for Kaposi Sarcoma only
  • Medical
    • Overseas treatment re-rate for nib
    • Diagnostic Tests re-rate for all companies 
    • Minor Surgery amount score correction for nib 
  • Income Protection & Mortgage Protection
    • Rehab and Modifications re-rate for AIA
  • TPD
    • Inflation Adjustment – re-rate for all companies

Legal and regulatory update for the life and health insurance sector

17 May 2021 – Department of Internal Affairs advised that it had extended the interim solution for corporate trustee annual AML/CFT report obligations such that a corporate trustee, whose AML/CFT obligations are being fulfilled by a parent law firm, accounting practice or a trust and company service provider (TCSP) that is a reporting entity in New Zealand is not required to submit an annual report by 31 August 2021. https://www.dia.govt.nz/extension-on-interim-solution-for-corporate-trustee-annual-report-obligations

18 May 2021 – FMA Story – “New default engagement requirements a cue for all KiwiSaver providers” outlines the new KiwiSaver default provider member engagement requirements. (Chatswood comment: Noting that anyone eligible to be a KiwiSaver member will be able to join or transfer into any of the new low fee default balanced KiwiSaver funds from 1 Dec 2021, these new member engagement requirements will also apply to such members.) https://www.fma.govt.nz/news-and-resources/fma-stories/new-default-engagement-kiwisaver-requirements/

18 May 2021 – FMA Story – “Pulling our weight in the fight against crime and money laundering” comments on the recent international FATF body assessment of New Zealand’s AML/CFT regime. https://www.fma.govt.nz/news-and-resources/fma-stories/pulling-our-weight-in-the-fight-against-crime-and-money-laundering/


Legal and regulatory review for the life and health insurance sector

13 May 2021 - Overseas Investment Amendment Bill (No 3) completed second reading in Parliament. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_97807/overseas-investment-amendment-bill-no-3

14 May 2021 – Government announced the new default KiwiSaver provider arrangements, which will take effect once the terms of the current providers end on 30 November 2021, noting a reduction in default providers from nine to six, with the providers from 1 Dec 2021 including Bank of New Zealand, Booster, BT Funds Management (Westpac), Kiwi Wealth, Simplicity and Smartshares (NZX). Relevant weblinks follow:

https://www.beehive.govt.nz/release/kiwisaver-default-provider-scheme-improvements-slash-fees-boosts-savings

https://www.fma.govt.nz/news-and-resources/media-releases/new-default-kiwisaver-settings-designed-to-benefit-members/

https://cffc.govt.nz/news-and-media/news/kiwisaver-default-providers-2021-2028/

14 May 2021 – The Department of Internal Affairs published comment on its use of targeted compliance assessments that focus on the effectiveness and implementation of specific AML/CFT obligations in practice, noting the recent use of this approach to focus on the requirement for a reporting entity to have an independent AML/CFT audit conducted every two years. https://www.dia.govt.nz/AML-CFT-Targeted-Compliance-Assessments---Independent-Audit


Fidelity Life appoints new Chief Operating Officer

Fidelity Life has announced that Ian Clancy has been appointed as the new Chief Operating Officer. Clancy joins Fidelity Life from IAG NZ and has extensive experience in similar roles. Clancy will begin on 17 May to accelerate Fidelity Life’s customer-led transformation. CEO Melissa Cantell has said that Clancy will be responsible for bringing Fidelity Life’s transformation strategy to life.

“Fidelity Life has appointed Ian Clancy to its Executive team in the newly created role of Chief Operating Officer.

Ian starts his new role on 17 May and will report to Chief Executive Melissa Cantell.

Melissa says the Chief Operating Officer role is all about accelerating Fidelity Life’s customer-led transformation.

“Ian will focus on setting us up to successfully deliver all the exciting plans we have to reimagine life insurance for New Zealanders. This means Ian’s accountable for bringing our transformation strategy to life, and also for our high performance culture, which will ensure we’re agile, adaptive and ready to transform.  We’re delighted to have someone of Ian’s calibre joining our team.”

Ian has extensive experience leading large operations and major transformation programmes. He joins Fidelity Life following seven years at IAG NZ, and has held senior roles across the financial services industry in New Zealand, Australia and the UK, including with Fisher & Paykel Finance and Royal Bank of Canada.” Click here to read more