Quality Product Research: addition of specific injury insurance rating

Specific Injury Cover is of great benefit in circumstances where ACC or other insurance policies do not provide sufficient financial protection. Although it presents as a succinct product (or optional benefit), it offers a comprehensive injury cover at an affordable price. It may be the case that this product appeals only to a particular market niche, but we believe that its benefits and features are of considerable value and should therefore be included within our rated products’ suite.

We have a draft comparison of those insurers who offer this product but are yet to release this publicly, pending data to support our ratings.

We invite you to join us on this rating process as we greatly value your input and feedback on changes we make to our platform. We are looking at gaining further insight into this product and would really appreciate any data that you are able to share with us from experience. We are especially keen to gain a better understanding of:

  • The most claimed benefits within Specific Injury.
  • The most claimed fractures.
  • The features that are claimed more than once.

It would be of considerable assistance if you are able to provide us with relevant data and claims information.

Once we have received and reviewed all the feedback, relevant information and data from the Insurers we have communicated this to, we will publish a preliminary rating report for you to review.

Please note that at this stage, the rating framework we have formulated for Specific Injury Cover can change depending on the information we receive from those insurers who wish to participate in this exercise. The finalised ratings will subsequently be published and be available to view on Quotemonster.

If you're interested in being involved in this rating, have had a client with a claim, or are an expert in this field please email us on researcher@qpresearch.co.nz 

We look forward to your assistance and input with this rating exercise and thank you in advance for your participation and time.

New Year, new research: expanded and updated research database and product range details...

The Quotemonster team is back on deck for the new year and ready to support your quoting and Research needs.

On our last day of business, we uploaded database version 14.7 to Quotemonster which contained the following changes:

> Fidelity’s range of enhancements effective 15 November 2021  

  • Updated policy wording, brochures, and application forms are also available in the “Documents” tab within your Research comparison screen   
  • Funeral Fund was withdrawn from this date however a static Research rating for this can be found in your "Research Tools" tab 
  • More information on these enhancements can be found here 

> Updates to our Research include:

Within Trauma:

  • Chronic Lung Disease
  • HIV Medically Acquired renamed to HIV

Within Medical:

  • Specialist Consultation – (minor correction to guide score)
  • Imaging
  • Mental Health
  • Physiotherapist (applies to Southern Cross Wellbeing 2)

> Updates to our website include:

  • Research for Life Income/Family Protection has been enabled for AIA, Cigna, Fidelity, and Partners Life

And the biggest upgrade will be an entire site refresh scheduled for early 2022!

Happy Crunching!  

Cigna extends campaign, and more daily news

Cigna has announced that the Good things come in twos campaign has been extended until the end of January. Cigna has highlighted that they have received positive feedback on the campaign. New customers will be able to get two months free premiums while existing customers will get free premiums when they take out or increase their level of insurance via a financial adviser. Cigna will apply the same offer for applications submitted after 17 December. Advisers will be offered twice the servicing commission for two months for all new business. They will also be offered increases sold while the campaign is running.

“To help you and your customers get off to a great start in 2022 we’re extending our Good things come in twos campaign until 31 January.

The campaign’s had a fantastic response and we’ve had overwhelming positive feedback from you about the impact that two months of free cover has had for your new and existing customers.

We'll be backdating the offer so if you've submitted any business after 17 December please let your customers know that they may be eligible to take up the offer.

Two months free for them

We’re giving your customers free premiums when they take out or increase their level of insurance with the help of an Independent Financial Adviser.

New customers will receive two months of free cover.

Existing customers who increase their level of insurance will receive the first two months of increased cover at no additional cost.

Twice the servicing commission for you

We’re offering twice the servicing commission for two months for all new business and increases sold during the campaign period. This is a continued show of thanks for the significant additional time and effort you’ve put in to supporting your customers and to adapting to new ways of working.

In other news

From Good returns: Cold call changes insured's life

Cigna: Cigna NZ "really excited about the change"

Partners Life on reasons for pricing changes, and more daily news

Partners Life has highlighted reasons for the recent pricing change announcement. Partners Life has noted the following reasons as the key drivers for change:

  • The number of claims paid in the past 19 months were greater than expected
  • Partners Life has sufficient data to ensure that the most accurate price of risk is applied
  • It’s been approximately two years since the last Yearly Renewal Term pricing changes
  • high level of cross-subsidisation across some products and within products
  • wants each product to be sustainable, especially trauma and disability

Partners Life has defended the upcoming changes to its premium structure saying they are a "normal aspect of the insurance market that we operate in".

Earlier this week the life insurer said that over the past 19 months it had paid out more in claims than expected and would increase its Yearly Renewal Term (YRT) policy premiums by an average of six to seven per cent from February 21 next year.

Chief commercial officer Tony Arthur said over the past 10 years the company had collected enough data that "...we now have the level of insight where we can appropriately price the client demographic to make sure that we are applying the most accurate price of risk by each customer group".

"It's important to remember it's been almost two years since our last YLT pricing changes and pricing changes like this are a normal aspect of the insurance market that we operate in."

Partners Life chief actuary Anton Gardiner said the firm was not afraid to make tough calls but were "very transparent when we do that".

"For some product lines we are paying more than we expect...and we found quite a high level of cross-subsidisation both across products and within products.

"For our products to be sustainable we had to start to address some of this cross-subsidisation.

“It's important that each product can support itself on its own - particularly for trauma and disability...we were getting a lot more claims than we expected in certain age groups."

An example of this was for trauma claims for women aged 40 to 49 where Partners has paid out over 20% more than it expected to pay. Click here to read more

In other news

Cigna: David Hadley appointed as Business Performance Manager

Fidelity Life: existing Platinum Plus, Platinum Plus Level Term and Mortgage Protector policies with a May anniversary were moved to Tahi on 13 December. The following polices were excluded:

  • polices that are paid from a consolidated direct debit
  • policies with direct debit or credit card payments due 8 - 13 December
  • polices with application or alterations in process
  • polices on claim
  • a small number of other polices for various reasons

Cigna introduce Adviser Hub enhancements, and more daily news

Cigna has announced that new features have been added to Adviser Hub to ensure compliance with FSLAA. Once the online learning or accreditation requirements are released next year advisers will be able to use the new feature. The first feature allows advisers to link their FSPR number to their Adviser Hub profile, allowing advisers with an active FSPR number to access Adviser Hub in accordance with the permissions they have. The second feature called My Profile has been added to allow advisers to monitor accreditation requirements and their FSPR status. The third feature is My Score Card. This feature is connected to Cigna’s training and accreditation portals and the FSPR. My Score Card will change colours depending on an adviser’s status.

“We’re pleased to announce the first of a series of improvements to Adviser Hub to assist you to stay on top of your obligations outlined in your Distribution Agreement, our Cigna Standards of Ethics and Conduct (Conduct Standards) and in The Financial Services Legislation Amendment Act (FSLAA) 2019, which is now incorporated into the Financial Markets Conduct Act 2013.

  1. Your unique FSPR number is now connected to your Adviser Hub profile

From Tuesday 7 December, your unique Financial Service Provider Register (FSPR) number will be connected to your Adviser Hub profile.

This means your access to Adviser Hub will become conditional on the type of permissions you have, and will take into account whether you have an active FSPR number provided by the Ministry of Business, Innovation and Employment (MBIE).

  1. We’ve introduced some new features to Adviser Hub

My Profile

When you login to Adviser Hub on Tuesday 7 December you’ll find a new My profile page. This easy-to-use tool will help you stay on top of your accreditation requirements outlined in our Conduct Standards such as annual refresher product training courses, and declarations. You can also use it to keep track of your FSPR status.

My Score Card

To make it easy to stay on track of your requirements, our team have worked hard behind the scenes to provide a clear and easy way for you to check your status against these requirements at a glance.

My Score Card is a traffic light indicator which is connected to the MBIE FSPR as well as our training and accreditation portals. It will automatically change from green to orange or red based on whether you’re up to date with your requirements.

Put simply, if the light is green next to a requirement you’re good to go. If the light is orange or red, we’ll let you know exactly what you need to do to get back on track.

Do I need to do anything now?

Until we release our online learning or accreditation requirements in the New Year, there’s nothing you need to do. All you’ll see for now is the status of your FSPR which should be green.

In other news

ACC: ACC adopts COVID-19 vaccination requirements

Wealthpoint to lower fees and increase commission, and more daily news

Wealthpoint has recently announced that product commissions will be under 4%. In a statement Wealthpoint said that the co-op retention rate will be approximately 3% starting from next year. Members are set to receive more commission as a result of the updated cap on the financial support Wealthpoint received from life and health insurers.

“National adviser business cooperative, Wealthpoint, has slashed member costs as the group looks to build further scale in the lead-up to full licensing across the industry.

Wealthpoint chief, Simon Manning, told members last week that the group would pass on more revenue to adviser businesses under revised commission terms.

Manning said Wealthpoint, which serves as the Financial Advice Provider (FAP) for about 50 independently owned advisory firms, would cut its “retention” rate – or the share of product commission kept by the central co-op entity – to under 4 per cent.

The co-op charges member annual fees to advisers and businesses as well as retaining a share of commissions earned on insurance, mortgage, investment and KiwiSaver products sold through the network.

Currently, Wealthpoint keeps just over 4 per cent of product commissions but will pare that back to under 4 per cent in a change that should see member firms collectively better-off by up to $1 million.

In a release, the group says it plans to reduce the co-op retention rate to about 3 per cent next year. Members also set to receive more commission share under a new cap on Wealthpoint-retained “financial support” from life and health insurers: any excess insurer-derived income above the cap will passed on to member businesses, the statement says.

Manning said Wealthpoint, which emerged out of the AMP NZ adviser body in 2019, now had the “real scale” to reduce member costs after the initial higher expense incurred in establishing a FAP-compliant network.” Click here to read more

In other news

Cigna: David Hadley appointed as Business Performance Manager

Cigna: James Dacombe appointed as South Island Senior Underwriter

Cigna: Natalija Talbot appointed as Senior Underwriter based in Taupo

Cigna: Rachel McBeath new distribution support senior specialist based in Christchurch

Cigna: Tom Marchant appointed as Senior Underwriter based in Wellington

Cigna Life Insurance sold to Chubb

Cigna New Zealand announced that Cigna Life Insurance here in New Zealand has been sold to Chubb. Additionally, Cigna has sold businesses in Hong Kong, Indonesia, Korea, Taiwan, Thailand and Turkey to Chubb for US$5.75 billion. Cigna New Zealand CEO Gail Costa has said the focus will continue to be Cigna customers.

This afternoon Cigna Corporation announced that it has sold a number of businesses in its International Markets portfolio to Chubb for US$5.75 billion.

This includes our very attractive life insurance business in New Zealand as well as businesses in Hong Kong, Indonesia, Korea, Taiwan, Thailand and Turkey.

For those of you that may not be familiar with Chubb, they are one of the world’s largest publicly traded insurance companies. They have operations in 54 countries and territories, employ 31,000 people and have net assets of almost US$200 billion. They are one of the top 200 companies in the world by market capitalisation.

Importantly, Chubb are looking forward to playing a leading role in the future of the global life insurance industry. They see New Zealand as a highly desirable market and are excited about our growth potential.

Chubb view the purchase of our business as highly complementary to their global business as it now adds life insurance to their fire and general presence in New Zealand.

David, the leadership team and I firmly believe Chubb are committed and well positioned to continue developing our offering. We have a number of initiatives in progress, which we’ll share more about with you in the coming months.

This is an exciting opportunity for us, given Chubb’s size, scale and desire to invest in our business so that we can continue to innovate and expand our product and service offerings.

I’d like to use today’s announcement to reinforce the importance of our long-term partnership, our commitment to third party distribution and to growing our businesses together.

Our focus on being there when our customers need us most is at the heart of everything we do and we look forward to continuing to deliver great insurance solutions for New Zealanders alongside you.