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nib report on financial growth, and more daily news

nib New Zealand recently reported on the financial results for the 12 months to 30 June 2021. nib announced that it had experienced good results despite COVID-19 related uncertainties and disruptions. Premium revenue was $277.8 million (NZD), a 9.8% increase from the same period last year. The increase in premium revenue has been credited to strong policyholder sales and pricing adjustments.  An underwriting result of $26.8 million (NZD) was achieved, this is up 3.6% from the same period last year. Click here to read more

“nib New Zealand today announced its results for the 12 months to 30 June 2021 (FY21) with premium revenue lifting 9.8% to NZD$277.8 million and underwriting result1 of NZD$26.8 million up 3.6% on the same period last year (FY20: NZD$25.9 million). 

nib New Zealand Chief Executive Officer, Rob Hennin said the business delivered another good result despite the uncertainties and disruptions caused by COVID-19. 

 

“From the onset of the pandemic our key focus has been on the health and wellbeing of our members, travellers and employees, which is why we swiftly enacted our member support package that, to date, totals AU$45 million across the nib Group,” Mr Hennin said. 

 

The full year result includes the full release of the initial NZD$9.0 million COVID-19 provision, matching the expected claims catch-up for deferred treatment.

 

“While there was some initial impact on healthcare access, claims have quickly bounced back which means our members have been able to get the healthcare treatment they need,” Mr Hennin said.

 

Premium revenue growth for the period was driven by strong policyholder sales and pricing adjustments. Net policyholders increased 1.6% impacted by the decrease in inbound international students due to COVID-19 travel restrictions.

 

“Excluding international students, policyholder growth was 5.0% supported by the performance of channels including group, adviser and our whitelabel partner, the New Zealand Automobile Association. Since we acquired the business, we’ve grown policyholders by 50%,” Mr Hennin said

Mr Hennin said growth in nib’s net promoter score (FY21: 34 vs FY20: 33) reflected nib’s digital transformation progress, with investment in system modernisation improving the member experience.

 

“We’re big advocates of digital healthcare as it addresses many of the barriers that prevent people from accessing healthcare. That’s why we’ve teamed up with digital-first providers like Tend to make it easier for our members to see a GP, coupled with Zoom pharmacy which improves medicines adherence by delivering prescriptions direct to a patient’s home or work,” he said.

 

Mr Hennin said nib also continues to work with its key partners and members to roll out population health initiatives that deliver significant health and wellness benefits to the community. 

 

“For example, we’re supporting Ngāti Whātua Ōrākei’s Body Warrant of Fitness programme which helps members to access quality healthcare providers and increase their health knowledge and literacy. By providing free primary health checks, the programme aims to improve their health outcomes through early detection and diagnosis of any potential disease,” Mr Hennin.

 

“We’re also actively developing solutions to expand these initiatives to other iwi,” he concluded.

 

nib New Zealand Chairman, Tony Ryall said FY21 also demonstrated the importance of good health and the role private health insurance plays in helping Kiwis to achieve better health outcomes.

 

“The pandemic has heightened community awareness of disease risk and the need to better manage that risk. Our partnership with Honeysuckle Health reflects this thinking as we look to deploy advanced data science to more precisely predict and treat health risks, moving towards prevention over cure,” Mr Ryall said.”

In other news

AIA: Rosalyn Lambert will be on leave until mid-next year with Anna Biss stepping into her role.

From Insurance Business Mag: What does 'fairness and integrity' mean in the advice journey?

Pinnacle Life: Should health and life insurers change the way they underwrite policies?

Cigna: Cigna appoints experienced lawyer, Jeremy Valentine, to its leadership team; Valentine was formerly of Co-op Bank


Quality Product Research - Grief & Funeral Support (Part 2)

Following on from our previous blog on the proposed rating of Grief and Funeral in Life cover, we have added a new sub-item to show that Cigna does have a counselling benefit which is only available within three months of a counselling session. 

The total definition score for Cigna remains at 90 however this was an important correction for when we roll our our new detailed head to head reports which will display our sub-items. 

Part 2

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

 


Quality Product Research - Upcoming demonstrations

While lockdown is a challenging time for everyone, it may be the perfect time to attend one of our upcoming training sessions. 

We have scheduled the following zoom demonstrations with Quotemonsters' General Manager Treena Jordan: 

Introduction to Quotemonster (basic) 

  • Thursday, 2 September 2021 11.00 AM – 12.00 PM
  • Thursday, 16 September 2021 11.00 AM – 12.00 PM
  • Thursday, 21 October 2021 11.00 AM – 12.00 PM

Quotemonster Deep Dive (recommended for experienced users only) 

  • Thursday, 9 September 2021 11.00 AM – 12.00 PM
  • Thursday, 7 October 2021 11:00 AM-12:00 PM
  • Thursday, 28 October 11.00 AM – 12.00 PM

Advicemonster Demonstration (Statement of Advice service) 

  • Thursday, 30 September 11.00 AM – 12.00 PM
  • Thursday, 14 October 11.00 AM – 12.00 PM

Please email us at info@quotemonster.co.nz with the session you wish to attend


Income protection concerns for the self-employed and other daily news

In the UK, where the gig economy is more developed than it is here, policy makers are worried that varieties of social protections designed for full-time employment are not going to work so well in the 2st century labour market. These include pensions (to us, superannuation), holidays, and insurance. Income protection in particular is under the spotlight because, at the same time as self-employment is growing rapidly, it seems that income protection is shrinking rapidly. Income cover has become more and more restrictive for the self-employed as insurers have grappled with long-term claims with hard-to-pin-down signs and symptoms. This sounds familiar. In fact, it sounds like our future if the APRA changes mandated to ensure the sustainability of income protection eventually end up being adopted here. The essence of the problems with income protection for the self employed is a lack of flexibility in the product. That is exactly what insurers are struggling with too. If both want more flexibility it looks like there is room for a new kind of IP product for the self-employed. 

Other daily news

Fidelity Life rolled out August Lockdown mix-tape on Spotify – some fun and simple initiatives for people working from home. Link here: https://www.linkedin.com/posts/fidelity-life-company-ltd_august-lockdown-mix-tape-activity-6836487685444636672-OcWj

Fidelity Life has advertised a new role for Head of Risk and Operational Compliance. More info and the Seek.co.nz link here: https://www.linkedin.com/posts/angelareddy_head-of-risk-operational-compliance-job-activity-6835715862239031296-rVZJ

Asteron Life providing product innovation by listening to customers and advisers. Link here: https://www.linkedin.com/posts/asteron-life-limited_asteron-life-supporters-for-life-activity-6836047658919055361-Y_3g

Stuff published a handy guide to the interaction between ACC, health insurance, and harm if you get an allergic reaction to the vaccine against COVID-19 (a very rare eventuality, but there are some instances of this). Essentially, you are covered by ACC and your personal health insurance is unaffected. Link


APRA Life insurance industry statistics release and more daily news

The Australian Prudential Regulation Authority (APRA) today released its Quarterly Life Insurance Performance Statistics publication for the June 2021 quarter.

The update provides an industry level view including showing premium growth and profitability by line of product. It clearly shows the serious problem with income protection contracts that has led to substantial changes being imposed by the regulator.

As a guide to the sector in Australian it is excellent. It is also an exemplar of how sector level information could be provided for the benefit of consumers, advisers, and the industry. Link

 

Other daily news: 

FMA Covid-19 Update – Essential Services, AML/CFT Reports and Financial Licensing and more. Link

CDC Study reveals unvaccinated people are 29 times more likely to land in hospital with Covid-19. Read the article here: Unvaccinated people are 29 times more likely to land in the hospital with COVID-19 than those who got the shot, a new CDC study reveals (businessinsider.com.au)

Partners Life Product changes and Benefit Improvements effective 12 July 2021: Download Product Changes and Benefit Improvements effective 12 July 2021

 


Quotemonster – Quoting any life insurer with any medical insurer

If you’ve noticed that an insurer tends to drop off when you’re quoting a package that includes medical cover, then we’d like to share a tip with you!

One of the most important features on Quotemonster is your “Settings” screen – as well as being able to set up your default occupation codes, Research report settings (whether you prefer our standard or star ratings, benefit overview or heatmap reports), user settings and security, the settings is where you can select your default product basket.

We highly recommend selecting your basket when you first create a Quotemonster account however you can alter this at any time.

Some of the major insurers like Fidelity, Cigna or Asteron do not offer a health insurance product so you can link them to a health provider which will them allow them to show up in your quotes.

Happy Crunching!

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Legal and regulatory update for the life and health insurance sector

25 Aug 2021 – FMA updated the list of Level 4 essential financial services. Some aspects of the life and health sector are included, but this is more restricted than previous definitions. https://www.fma.govt.nz/news-and-resources/covid-19/list-of-level-4-essential-services/

25 Aug 2021 – FMA updated information on consultations as follows:

  • Expiring class legislative notices (Closed – Pending response)
  • Review of the Wholesale Investor Exclusion $750,000 Minimum Investment Exemption (Closed – with decision)
  • Proposed financial reporting exemptions for FMC reporting entities in liquidation, receivership or voluntary administration (Open)

https://www.fma.govt.nz/compliance/consultation/


Quality Product Research: Medical Exclusions Major Review Update

After many months of discussion and consultation, we are pleased to say we have finally put together a comprehensive list of Medical Exclusions and would like to publish this with the next release of our database. Although most insurers work on a case by case basis in regards to claims, we have based our rating on the policy document rather than general statements or current claims 'practice' which it is not possible for us to assess. We value each and every piece of feedback we have received and would like to share the list we have  updated here - Download Medical Exclusions 2021 

The list is more comprehensive and so total scores (which in exclusions result in negative scores) are higher. A reminder however, that these are still constrained by the weighting for exclusions as a whole within the product, so this does not represent any increase in the weighting for exclusions in the overall rating. There are, of course, some variations between the old approach and the new more comprehensive view. There are some weighting issues still to address. The exclusion impact for HIV is probably slightly too high given its population incidence. There is an argument that this disorder should be insurable now. 

Our grateful thanks to the insurers that participated in the consultation. Adviser interested in the sub-items for the exclusions under medical should contact us directly (email for our researcher, Doreen Dutt is below) if you would like to discuss the ratings. We shall compile a list of names and see if there is sufficient interest for us to run a special feedback session. Please feel free to email through any comments to researcher@qpresearch.co.nz as this helps to improve the accuracy and relevance of our ratings.