Quality Product Research: Proposed rating for Osteoporosis

Introduction

We have recently renamed the “Osteoporosis” item to “Early Onset Osteoporosis” to reflect the severity-based definition that insurers use and a common limit of payment to those aged under 50 years old. 

Sub-items rating review

Osteon new

Notes

A noticeable difference is the fact that several insurers do not offer this benefit once the insured is over 50. Though osteoporosis among those younger than 50 is considered rare, a study conducted at the University of Arkansas found that it's a greater risk than most women realize. From information on 164 college-aged women, 2 percent had bone densities low enough to be considered osteoporosis, and 15 percent were low enough to be in the osteoporosis risk range. To read more on this click here. Nevertheless our previous penalty for the limitation on age was far below the level of cases that this probably removes from the claims pool. So we have increase the penalty from -10 to -75. 

This is also a great example of how our methodology, specifically the  “Amount Score” (one of four) comes into play, to highlight the different payment amounts made by insurers. Please note, Asteron Life only offers cover for Osteoporosis with their “Early Trauma Benefit” similarly with AMP products you will need to select the Plus Options. These are all available in your “Product Settings” on Quotemonster.

Your feedback

We value getting your feedback on how these wordings are being applied to claims you may be aware of. Please email any claims information you have regarding this condition.   

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


Number of advisers on FSPR decreases, and more daily news

It has been announced that the Companies Office has deregistered advisers that were registered as financial advisers on the FSPR. Although the number has decreased from the initial number recorded in March 2020, it has increased from the figured reported in March 2021. Currently are there 9236 registered financial advisers. Bolen Ng, MBIE national manager of business registries, has said that 458 FSPs were registered under s18(1)(b) of the Financial Service Providers (Registration and Dispute Resolution) Act 2008. 550 letters were sent out to FSPs who weren’t linked to a FAP. Individuals had 20 working days to update their registration. FAPS now have until 15 March 2023 to apply for their full licences. Click here to read more

“As of July 29, there are 9236 financial service providers (FSPs) registered as financial advisers (FAs) on the Financial Service Providers Register (FSPR).

This number is down 80 from March 15, 2020, but up 58 from March 15, 2121.

FSPs on the FSPR:

- FSPs registered as financial advisers on the FSPR as at 15/03/20: 9316

- FSPs registered as financial advisers on the FSPR as at 15/03/21: 9178

- FSPs registered as financial advisers on the FSPR as at 29/07/21: 9236

Ministry of Business, Innovation & Employment national manager of business registries Bolen Ng says the Companies Office has deregistered 458 FSPs under s18(1)(b) of the Financial Service Providers (Registration and Dispute Resolution) Act 2008.

"These are the FSPs that became financial advisers under the new financial advice regime on March 15, but hadn’t linked to a financial advice provider within three months of that date," Ng says.

In June, the Companies Office sent about 550 letters to FSPs who had not linked themselves to a financial service provider (FAP) warning them of imminent deregistration.

FSPs had a 20 working day objection period within which to update their registration.

FAPs now have less than two years to apply for a full licence by the cut off date of March 15, 2023.”

These reductions are not as great as feared by some through the implementation of the new regime. However, it may be too soon to declare that the necessary balance has been struck between raising standards and sustaining access to advice for the greatest number of clients. As the process of gaining a transitional licence did not require passing much of a threshold many advisers that may leave the industry may have entered the new regime with little or no intention of obtaining a full licence. Insurers report levels of new business production have fallen substantially. That suggests that the industry has sustained a serious blow not fully described by these numbers. 

In other news

Financial Advice: KiwiSaver – Contributions are just as important as fees

RBNZ: Reserve Bank considers tighter mortgage lending standards

From Good returns: Income protection: Why taxable losses are not the right advice


Quality Product Research - upcoming Demonstrations

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

Introduction to Quotemonster (basic) 

  • Thursday, 5 August 2021 11:30 AM-12:30 PM
  • Monday 16 August 2021 10:30 AM-11:30 PM
  • 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) 

  • Wednesday, 18 August 2021 11:00 AM-12:00 PM
  • 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) 

  • Wednesday, 25 August 2021 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 at info@quotemonster.co.nz with the session you wish to attend


A failure of product design - TPD benefits

Several advisers have been writing to me over the last few months with issues with TPD benefits. I have also conducted a review of TPD benefits recently for a client. Several aspects of TPD design have come into focus through the process. Two that stand out are variations in loss of independent living features, which are usually based on activities of daily living (ADLs).

Almost all companies have five activities. At first glance these appear very similar. Closer inspection shows differences. The first is that the walking definition of some is not fulfilled if the insured person can get about in a wheelchair, whereas with others it is fulfilled if the insured has to use a wheelchair. The second difference is that independent existence requires the assistance of a person to help the insured, which is not fulfilled if technology can help. 

Although I have not done the research, I am willing to bet that consumers believe that if you are confined to a wheelchair that would indicate a claims payment would be made. In fact, to be fair, it probably does pay out most of the time: as in most cases the claim would qualify under other factors. But claims do exist where the decision will hinge on this one fact - and I think consumers would expect the cover to consider you sufficiently disabled if you needed a wheelchair to get about (assuming the other conditions were met, of course, such as this being permanent - not merely temporary). In fact I saw the details of one such claim yesterday. Likewise with technology: the rapidly improving situation with technology means that someone who could not walk at all may be able to buy a set of robotic legs that enable them to walk. Here are examples: on in the US, another using technology developed here in New Zealand

Individually these are interesting issues - and should be resolved - but collectively they indicate both a communication and product development challenge. The communication issue is how we get across to customers what we mean by loss of independent existence. We cannot simply allow a situation to exist where we allow our different perceptions of what is meant to exist. At best, that's simply too sloppy,  at worst, if it is done knowingly, then its a form of misrepresentation of what the product does. The product development challenge is to work out what consumers need and deliver a product that does that. Robot legs do not come cheap - I suspect that consumers want a policy that will pay for them, not fail to pay out because of them. In product design that means some hard work has to be done. That means literally testing scenarios and descriptions and working out what level of cover is needed, how to communicate about that cover, and building the wording and pricing up from there. Then launching that and successfully demonstrating how much better that product is compared to the rest. There is definitely room for improvement. 


Cigna announce Cigna Live, and more daily news

Cigna has announced that Cigna Live will be held in August. David Haak has noted that attendees will hear from the Cigna team as well as expert guests. Further details are expected to be announced in the coming week.

To kick things off, I’m thrilled to announce Cigna Live will be back in August. Not only will you hear the latest from myself and the Cigna Team, but we’ve lined up some expert external guests to share their insights into our industry and the wider New Zealand market. This is a not-to-be-missed event, so keep an eye out for your invite and further details next week.

In other news

Cigna: Shaping Change adviser survey

Cigna: Seven common misconceptions about funeral insurance

FSC: FSC 'Generation Rent' Research Launch

FSC: Outlook 2021/22 with Geoff Bascand in Wellington - 29 July

FSC: Get In Shape Webinar Series: Session 19

FMA: 


Quality Product Research – upcoming zoom demonstrations

Introduction to Quotemonster with Kelly on Thursday, 5 August 2021 11:30 AM-12:30 PM

Introduction to our new report features with Treena on Wednesday, 28 July 2021 11:00 AM-11:30 AM and Wednesday, 4 August 2021 11:00 AM-11:30 AM

*New* Quotemonster Deep Dive with Treena on Wednesday, 18 August 2021 11:00 AM-12:00 PM – recommended for experienced users only. In this session we will:

  • Discuss features that are rarely used
  • Take a glimpse into our Research Database
  • Discuss the importance of our methodology and the value-based approach

Advicemonster (SOA) Demonstration with Treena on Thursday, 29 July 2021 11:00 AM-12:00 PM

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

Furthermore, here’s a short promo video we recently created highlighting the reasons why all advisers should be using Quotemonster

https://www.youtube.com/watch?v=vfrdqooFU4E

 


Financial Advice Conference 2021 announced, and more daily news

Financial Advice NZ has announced this year’s conference. Details on the conference are below.

Keynote speakers

Date: 16 November 2021

  • Mykel Dixon
  • Dr Angus Hervey, Future Crunch
  • Matt Whineray

Date: 17 November 2021

  • Matt Church
  • Siouxsie Wiles

Business sessions

Date: 17 November 2021

  • Speaker: John Spence, global business expert and executive coach (via Zoom)

Topic: Delivering Consistently Superior Customer Service

  • Speaker: Michael Henderson, Business Culture Subject Matter Expert

Topic: Ferocious Creating a High-Performance Company Culture

  • Speaker: Michael Kitces, financial planning educator (via Zoom)

Topic: Applying Behavioural Finance in Principle

  • Speaker: Paul Spoonley, demographer, former Pro Vice-​Chancellor of the College of Humanities and Social Sciences at Massey University

Topic: Demographic change and the impact on the face of New Zealand

Lightning Talks

Date: 16 November 2021

  • Sam Johnson
  • Ben Teusse
  • Simon White
  • Steven Korner

Venue: TSB Arena & Shed 6, 4 Queens Wharf, Wellington Central, Wellington

Dates: 15 November 2021, 16 November 2021, and 17 November 2021,

Prices:

2 Day Registration

Super Early Bird (prior to 31 July)

Early Bird (prior to 14 October)

Standard

Members

$750

$850

$900

Non-Members

$900

$1,000

$1,050

Students

on application

on application

on application

1 Day Registration

Members / Non-Members / Students

on application

on application

on application

Online (2 days, Keynote Speakers Only)

Members/Students

$200

   

Non - Members

$300

   

All costs exclude GST.

Masterclass

Venue: TSB Arena & Shed 6, 4 Queens Wharf, Wellington Central, Wellington

Date: 15 November 2021

Price: $80 + GST (MasterClass only)

Time: 2:30pm – 5:30pm followed by dinner at Portifino Restaurant at 6:30pm (dinner is an additional $60)

Click here to register

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In other news

Financial Advice: AGM will be held 15 November 2021

Compliance Refinery: Compliance Refinery expands

From Good returns: Once in a lifetime business - Take two

Financial Advice: Mid-Winter Blues Webinar Series


AIA grant to help tradies dealing with mental health problems

The recipients of the AIA Vitality Business and Community Grant, Mike Taylor and Ryan Edwards have created Tools Down to raise awareness of the mental health problems faced and the suicide rates of New Zealand tradies.  Tools Down is described as an introductory source that connects those struggling with specialist organisations across the country. Taylor has said that Tools Down hopes that by educating people about the help and support available they can encourage people to take control of their wellbeing.  

“Tools Down was started by Mike Taylor and Ryan Edwards, thanks to a $50,000 AIA Vitality Business and Community Grant, to shed a light on the topic rarely spoken about in the industry.

Ryan Edwards is managing director at The Adviser Platform and a Tools Down co-founder and has seen many tradies struggling with their mental health, and has worked with some of them to help alleviate financial and work pressures.

“The last decade has seen more than 300 tradies take their own lives," Edwards says.

"Not only is this a devastating number but it has a knock-on effect to roughly 1.5 million Kiwis who are affected by these tragic deaths or serious harm incidents."

“That’s why we’ve made it our mission to halve the number of suicides, serious injuries and harm experienced by tradies each year, by 2025.”

Managing partner at BBT Digital and Tools Down co-founder Mike Taylor recognises this is a lofty goal but is determined to achieve it.

“I’m a big believer in setting big, aggressive goals. By aiming to make a considerable impact, even if you fall slightly short, we’re still closer than if we set a smaller target.

“Our hope is that by educating people about the help and support available out there it can encourage people to take control of their wellbeing.

"With good education comes good prevention, this is where we’re hoping to encourage the conversation,” says Taylor.

Edwards says there are specific struggles a tradie faces that can take an overwhelming toll on mental health.

“You may wake up one morning and find your ute broken into and all your tools stolen or suffer a work injury that takes you off the tools.

"How do you deal with those lost assets and time on top of everything else? It can be the tipping point for some tradies," he says.

“Through Tools Down, people have approached us to discuss their hardships and need for valuable resources to coach them through times of stress. This is exactly what Tools Down is for and we’re glad people are using it.”

Tools Down is an introductory source for those who reach out via the platform, offering partnerships with specialist organisations across the country best placed to support those who seek help.

“Without the support of AIA Vitality, we wouldn’t have been able to get this platform off the ground," Edwards says.” Click here to read more

In other news

FMA: Annual Corporate Plan 2021/22


How to access the new research reports on Quotemonster

We have launched the first half of our new report formats on Quotemonster. Check out the new heatmap and benefit overview reports - login to your Quotemonster account, get crunching, then go to research, pick a benefit and explore the new, customer friendly report options available. 

We are delighted to offer new options to advisers who want research information that is more easily digestible for clients - but rest assured, under the hood, these reports are built on the same four factor research process that provides a value-based approach to rating insurance product. 

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We would love to hear what you think so please send any feedback to info@quotemonster.co.nz

 


mySolutions full FAP application sessions, and more daily news

mySolutions are set to run full FAP application sessions in the coming months in Auckland, Hamilton, Wellington, and Christchurch. Those living in other cities have the opportunity to attend a session in their city as long as there are a minimum of eight attendees. Those wishing to attend sessions should email their interest to shelly@mysolutions.nz

Prices

mySolution members: $2,500 per FAP

Non-members: $2,850 per FAP

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In other news

Financial Advice: Financial Advice is looking for someone to join as a Business Development Manager 

Cigna: Cigna scholarship boost for aspiring actuary

RBNZ: Monetary Stimulus Reduced

Partners Life: Client Education Resources Published by Partners Life

AIA:  AIA to Research Mental Health Issues Among Financial Advisers