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 - 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


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


nib announces Clearhead content series, and more daily news

nib has announced that Clearhead has launched a new content series in partnership with former All Black and Clearhead ambassador Nehe Milner-Skudder. The initiative is designed to support the wellbeing of most at-risk communities and in honour of Mental Health Awareness Week. Clearhead aim to open up a dialogue about mental wellbeing among Maori communities. Throughout the series, Milner-Skudder shares his mental health story and strategies that helped him in his journey. Milner-Skudder has noted that he is proud to be part of the initiative and hopes that his story helps more Māori to seek help when they need it.

“In honour of Mental Health Awareness Week (MHAW) and to better support the wellbeing of our most at-risk communities, Kiwi digital mental health company, Clearhead, has today released further resources to provide more tailored support for Māori, in partnership with nib foundation.

Alongside a suite of culturally appropriate upgrades across its website, Clearhead has launched a new content series with former All Black and Clearhead ambassador, Nehe Milner-Skudder (Ngāti Porou, Tapuika), with the hope of encouraging more open conversation about mental health across Māori communities.

The content series features Milner-Skudder sharing details of his own mental health journey, and the tips and strategies that helped him overcome his struggles – including the importance of reaching out to others for support.

Clearhead CEO, Dr Angela Lim says that while Māori populations are consistently over-represented in Kiwi suicide statistics and are twice as likely to experience mental health issues than non-Māori, most of the resources available in New Zealand are not designed to address these inequities.

“It’s important to note that the loss of indigenous culture and heritage can lead to challenges with identity, confidence, self-esteem, and a sense of belonging. We know from our own user data that Māori are 75% more likely to feel as though they don’t belong – and some of that comes down to not having adequate culturally responsive wellbeing support,” Dr Lim said.

“We wanted to help bridge that gap and respond to the feedback of our Māori users, who want to see content that looks and sounds like them to improve the chances of the material resonating,” she said. 

Clearhead ambassador, Nehe Milner-Skudder, says he’s proud to lend his support to the cause, and hopes that by sharing his story, more Kiwis (and in particular more Māori) will feel more comfortable to reach out when in need.

 “I used to see vulnerability as a weakness, but I’ve grown to understand that it leads to great strength. I think that’s a difficult mental obstacle to overcome, especially as a proud Māori male. What I hope people get from me sharing my story, is that you’re never alone in this battle and that there are resources and tools out there to help anyone who’s struggling,” he added.

The series of 20 videos sharing Milner-Skudder’s journey will be released via Clearhead’s Facebook Page during MHAW and will sit permanently on Clearhead’s website. Clearhead’s Māori-friendly website refresh is also live from today and now incorporates Kiwiana designs and includes a more holistic wellbeing journey, taking into consideration Māori models of care such as Manaakitanga – a principle that captures the idea of caring, supporting and uplifting others.

nib foundation Executive Officer, Amy Tribe, says “While mental illness doesn’t discriminate and can affect anyone, at any stage in their life, we know Māori are 30% more likely go on with these conditions undiagnosed compared to other ethnic groups*.

By funding the development of these resources through our foundation, we hope to help reduce some of the stigma around seeking support and promote Māori feeling more comfortable and empowered to seek help if and when it’s needed,” said Mrs Tribe.”

 

In other news

Financial Advice: The new draft Constitution

Financial Advice:  Financial Advice NZ 2021 Awards entries close 30th September

FMA: Momentum builds in KiwiSaver as scheme reaches $81 billion


FYI: Advicemonster accommodates advisers who offer limited advice

The current AdviceMonster process captures scope limitations and automatically reflects that in the SOA, as well as providing scope for advisers to further explain or limit scope. This is provided because there are many different ways to limit scope. Advicemonster offers scope limitation in three ways:

  • At the start, there are parameters for the advice engagement, which clearly define what the adviser is offering to give advice on. Four levels of advice limitation can be defined and additional limits can be added in a personalised approach by the adviser.
  • We also offer limitation of advice by specifying client objectives. These can be broad, which is the default, or very narrow, by choosing specific goals from the list. They can be further limited by adviser in a personalised objective.
  • We also offer limitation by product scope in the cover area. Different types of cover can be removed from the scope of the engagement, the adviser can add notes to explain the reason for limiting the scope to provide a robust process should there be a file review.

If you would like to attend a session to walk through scope limitation please register your interest at the email below.

If you'd like to attend an in-depth demonstration on Advicemonster, the following sessions are currently available: 

  • Tuesday, 14 September 11.00 AM – 12.00 PM
  • Thursday, 23 September 11.00 AM – 12.00 PM
  • Thursday, 30 September 11.00 AM – 12.00 PM
  • Thursday, 14 October 11.00 AM – 12.00 PM

Please email us on info@quotemonster.co.nz with the session you'd like to attend or if you're interested in a 14 day trial. 

Happy Crunching! 


Quality Product Research - New training sessions added

With another two weeks of lockdown confirmed we have decided to schedule a few more training sessions for the coming weeks: 

We have added the following sessions: 

Introduction to Quotemonster (Basic): 

  • Tuesday, 7 September 2021 11.00 AM – 12.00 PM
  • Tuesday, 21 September 2021 11.00 AM – 12.00 PM

Quotemonster Deep Dive (recommended for experienced users only) 

  • Tuesday, 28 September 11.00 AM – 12.00 PM

Advicemonster Demonstration (Statement of Advice service)

  • Tuesday, 14 September 11.00 AM – 12.00 PM
  • Thursday, 23 September 11.00 AM – 12.00 PM

Please note we are still holding the following sessions: 

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

Happy Crunching! 

 


What if only 17% of people ever went to the doctor?

That would be ridiculous wouldn't it - if only 17% of people went to the doctor when sick. Imagine, most people thinking that going to a doctor was unnecessary. It would be like thinking that a doctor couldn't  really know that much more about how to be healthy, or at least recover from sickness, than you do, so why pay all that money? 

Yet that is what people think about financial advice. It is one of the of the surprising conclusions of this paper from the United States on why people do not seek financial advice. Link

Perhaps you are about to dismiss that as the product of those foolish Americans, known for strange ideas - but the Commission for Financial Capability research shows similar levels of apathy for financial affairs here. Different survey aims and objectives, but very similar results from their survey at this link (especially refer to table three). 

There is no greater enemy to financial well-being than apathy. What we focus on, we can usually find a way to improve. The big debates within the sector tend to be about how to improve. That's valuable and so much earnest energy is expended there. I am part of it and I value the struggle and enjoy it. But I have to keep reminding myself, the really big debate, the one that would make all the difference, is how to get people paying some attention. 


Quality Product Research: value-based research supports evidence-based advice

We have recently had an influx of new users register on Quotemonster and would like to take the time to re-introduce our Research and Rating Methodology.

We think that using real-world data to make our research value-based makes it a lot easier to see which features and benefits really count, and which are just bells and whistles.

Our Four-Factor Research includes:

  1. Definition – the quality of the policy wording

In our definition score, we are purely looking for differences between policy wordings but will use the same sub-items across products (e.g., Agreed value, Indemnity, Loss of Earnings). We start with a score of 100 and usually make deductions according to restrictions and limitations in cover. Our approach differs for “Exclusions” as these take away from the policy so you will see this as a negative total score. A variation of this approach is also used in our rating for “Offsets.  

  1. Incidence – How likely the benefit is to be claimed

We collect data from re-insurers, statistics, underwriters, and medical experts to identify how likely each benefit will be claimed on.

  1. Amount – How much would be paid

Here we identify how much each insurer will pay. In trauma insurance, some companies pay the full benefit for an item, others only make a payment of 10% or 20% of the sum insured because the condition was not severe enough to warrant a full payment. Our score is varied according to how much would actually be paid. For some benefits, we create a claims scenario to determine the amount paid as it is not as clear-cut.

  1. Frequency – How often the benefit would be paid

Here we determine if a claim can be made more than once. A client can only claim on life insurance once, therefore the frequency will be 100% however this is less clear-cut for Medical which is where we create a claims scenario that will reflect multiple claims over a lifetime of the policy.

We then multiply the four factors to obtain the Insurance Quality Score that you will see on Quotemonster.

Definition x Incidence x Amount x Frequency = Insurance Quality Score

Also, we don't so this alone. We take advice - from a variety of expert sources below, and also from regularly engaging with advisers and insurers. In fact, we are running two consultations right now, and receiving input from reinsurance research to update our trauma claims incidence rates. We support an evidence-based approach to advice. 

Methodology add on v1

If you would like a one-page explanation of why methodology matters please email or call the team and we can send you the methodology info-graphic. If your team has new staff members (or any that would like a refresh), we can invite them to our regular Quotemonster and Advicemonster training sessions (attendees include Insurer Product Managers and various other Industry members). Please feel free to email through contact details of those who are interested in attending (researcher@qpresearch.co.nz). 

 

 


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. 


Asteron Life simplifies policy transfers, and more daily news

Asteron Life has announced that policy transfer between advisers or to FAPs is now simplified. Advisers will no longer need to complete specific forms or send through a copy of the Sale & Purchase Agreement. Instead, advisers will need to inform their BDM who the seller and purchaser are, when the transfer will happen, and whether it is a full or partial transfer of policies. Asteron Life will send a Notice of Transfer for both parties to sign and return.  Asteron Life has highlighted that all transfer requests need pre-approval. The pre-approval will be issued when an adviser states their intention to transfer policies.

“We have simplified our process for transferring client policies to another adviser or FAP. Our new process means there are no specific forms for you to complete, and no need to send us a copy of the Sale & Purchase Agreement between the two parties. Please discard any existing Sale & Purchase or client transfer forms you might have on file, as these will no longer be accepted. 

Going forward, you only need to contact your Business Development Manager/Consultant with the following information:

  • who the two parties are (seller and purchaser);
  • when the transfer is to happen (minimum of 7 days’ notice required);
  • whether or not you are transferring all of your client portfolio or only some specific clients (in which case you’ll need to tell us their full name and policy numbers).

We will then send you a Notice of Transfer for both parties to sign and return to us to action. 

A reminder that all transfer requests do need our pre-approval. We can confirm our approval when you first advise us of your intention to sell/transfer clients to another Adviser/FAP.”

In other news

ASB: Head of Financial Advice Competency

Vahry Insurance: Julia Vahry has been selected in New Zealand as one of the most outstanding young professionals

Accuro: Accuro is celebrating its 50th anniversary

Gen Re: Finding a Way Forward for Disability Income Insurance in Australia - Considering the Financial Aspects of Product, Underwriting and Claims [Part 4 of series]