Cigna multi-benefit discount is here to stay, and more daily news

Cigna has announced that the promotional multi-benefit discount will become a permanent offer. Cigna has highlighted that since the multi-benefit discount promotion launched last September, Cigna has received positive feedback. The multi-benefit discount is being offered to new customers as well as existing customers who were quoted and issued policies from 15 September 2020 to 17 October 2021. The multi-benefit discount can be used alongside the current good things come in twos offer that is available to advisers until 17 December.

“We’ve made our multi-benefit discount permanent and we’ve made it even better.

Since its release in September last year, we’ve had incredible feedback from the market on the difference the discount has made for customers taking out new cover.

 

Not only have we removed the age eligibility criteria, the permanent discount on Assurance Extra will now provide a 5% discount to customers taking Life Cover with one other qualifying cover and a 7% discount to those taking Life Cover with two other qualifying covers. The discount will be offered to all new business quoted and issued after 18 October 2021.

 

The discount can also be applied in conjunction with our Good things come in twos offer which is available to Advisers until 17 December 2021. This means not only will your new customers receive a multi-benefit discount on their cover, but they’ll also get the first two months of their cover, on us.  

 

The improved multi-benefit discount is not only for new customers, we’ll be passing it back to policies quoted and issued from 15 September 2020 to 17 October 2021 that were previously eligible for a discount under our campaign. The new levels will apply at their next policy anniversary.

 

This is just one of the ways we’re supporting customers with good value insurance solutions. For more information on the permanent discount visit cigna.co.nz/multi-benefit-discount”

 

In other news

Cigna: definitions and benefits across our Assurance Extra, Business Assurance, Business Extra and Agribusiness Extra Covers have been updated

Cigna: Business Assurance policy wording has been simplified and is now in WriteMark-approved plain English

FSC: ReGenerations Reimagined kicked off on Tuesday

Financial Advice: spots available on the ethics courses


Quality Product Research: Proposed rating for Aplastic Anaemia

Introduction

Were back with another item analysis - this time for Aplastic Anaemia.

Please find our proposed sub-items below.

Sub-items rating review

Aplastic

Notes

A defined treatment option is a commonality across all insurers, excluding Asteron Life who have a more open definition when compared to their competitors. We have included a sub-item for those insurers who require diagnosis from a medical specialist along with a deduction to those that do not offer an additional treatment option. Aplastic Anaemia is a lowly weighted item in our database; however, our proposed rating aims to emphasise the difference in the definition between insurers, rather than focusing too much on ranking them from best and worse.  

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


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


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. 


Southern Cross reveals top claims, and more daily news

Southern Cross has revealed that spinal fusions was the most expensive surgical claim in the year to 30 June 2021, with the most expensive claim costing $222,000. Radical neck dissection surgeries were the next most expensive claims. The three most common claims made were for cryotherapy procedures (34,000 claims), excisions of skin lesions (31,000 claims) and minor surgery performed by a GP (26,000 claims). In the year ended 30 June 2021, Southern Cross paid more than three million claims valued at $1.12 billion.

“Surgery for bad backs has topped the list of most expensive surgical claims funded by Southern Cross Health Insurance (Southern Cross) in the year to 30 June 2021, with the highest individual claim coming to $222,000.

Eight of the top 10 most expensive claims paid by New Zealand’s leading health insurer were for spinal fusions - surgery which permanently connects two or more vertebrae in the spine – with four claims topping a whopping $200,000.

Southern Cross Chief Medical Officer, Stephen Child, said that the expense and volume of these claims demonstrate the value and benefits of health insurance.

“Whether you require expensive surgery such as spinal fusion, or if you are one of thousands needing a more common procedure, such as the removal of a skin lesion, Southern Cross members can have the assurance they are covered for unexpected events.”

The next two most expensive claims were for radical neck dissection surgery, which involves the removal of cancerous tumours, with each claim totalling more than $150,000.

Child said spinal fusion is a highly complex procedure and therefore can be very costly.

“Spinal fusion surgery is a very serious procedure that’s typically performed by an orthopaedic surgeon or a neurosurgeon. Often it involves the implantation of extensive metalware and artificial bone, which results in additional cost and expense.”

Southern Cross is a not-for-profit Friendly Society which operates solely for the benefit of members. For the year ended 30 June 2021, it paid more than three million claims valued at $1.12 billion

When looking at what were the most common claims paid by Southern Cross, the highest by volume was cryotherapy procedures (34,000 individual claims), followed by excisions of skin lesions (31,000) and minor surgery performed by a GP (26,000).

Cryotherapy breaks down skin lesions or skin abnormalities at the site through freezing. A skin excision procedure involves the cutting of abnormal tissue away from healthy tissue.

Colonoscopies, which look for signs of bowel cancer and investigate causes of pain, bleeding or changed bowel habits, were the fourth most commonly-funded procedure, with 23,000 claims paid by Southern Cross.

“Given the high incidence of skin cancer in New Zealand, it isn’t surprising skin lesion removal is one of the most common procedures we fund,” Child said.

Although the individual claim costs can be high, Southern Cross Health Society’s Affiliated Provider programme has helped to dampen rising healthcare costs, achieving more than $220 million of savings for members through the programme since 2012.”

Top 10 most expensive individual claims in FY21

Procedure

Total paid

Spinal Fusion

$222,000

Spinal Fusion

$210,000

Spinal Fusion

$201,000

Spinal Fusion

$200,000

Spinal Fusion

$179,000

Spinal fusion

$175,000

Radical Neck Dissection

$170,000

Radical Neck Dissection

$156,000

Spinal Fusion

$156,000

Spinal Fusion

$153,000

Top 10 procedures by volume in FY21

 

Procedure

Description

Number of procedures funded

Cryotherapy of Skin Lesions

Liquid nitrogen treatment to freeze and destruct an abnormality.

34,000

Excision Skin Lesion

Cutting out abnormal tissue away, usually related to cancer.

31,000

GP minor surgery

N/A

26,000

Colonoscopy

An exam used to detect changes or abnormalities in the large intestine (colon) and rectum.

23,000

Intravitreal injection

An injection or shot of medicine into the eye.

10,000

Nasendoscopy

A test to look at the inside of the nose, the throat (pharynx) and the voice box (larynx).

9,000

Biopsy of Skin and Subcutaneous Tissue

A procedure to remove cells or skin samples from the body for laboratory examination.

9,000

Cataract extraction and insert IOL

Removal of cloudy lens in the eye and replacement with artificial IOL (intraocular) lens.

8,000

Gastroscopy (+/- Biopsy / Polyp)

A procedure to examine the upper part of the digestive system.

7,000

Removal of Teeth

N/A

6,000

In other news

Cigna: Gabe Smith new chief architect

Cigna: David Marquis to become head of data


AIA announce new research project, and more daily news

AIA NZ has announced that it will be sponsoring an independent research project, NZ Adviser Wellbeing Research. The project aims to understand the mental health and overall wellbeing of advisers. AIA is working with Australian researchers Dr Adam Fraser and Dr John Molineux who were both part of a similar study conducted in Australia earlier in the year. The study will explore the current mental health of New Zealand advisers, the habits and attitudes of advisers with positive mental wellbeing as well as the mindsets and behaviours necessary to manage market disruptions. Chief Partnership Insurance Officer Sam Tremethick has noted that AIA is looking to understand the key challenges experienced by advisers. Advisers looking participate can click here.

 

“AIA NZ is sponsoring an independent research project to better understand the mental health and wellbeing of financial advisers in New Zealand.

The project, called the ‘NZ Adviser Wellbeing Research’, aims to understand the current state of mental health of NZ financial advisers, explore the habits and attitudes of those advisers who are currently experiencing positive mental wellbeing, and understand the mindsets and behaviours needed to evolve and manage significant market disruptions.

 

Sam Tremethick, Chief Partnership Insurance Officer AIA NZ, says “We’re looking to undertake a ‘temperature check’ on how advisers are going here in NZ. We know there has been a lot of change in recent times, and this research will seek to understand the key challenges experienced by financial advisers locally, particularly in light of increased regulation, operating in a global pandemic and changing client needs.”

AIA NZ is working with Sydney-based researchers Dr Adam Fraser, founder of The e-lab, and Dr John Molineux who specialise in producing reports of this nature. The pair undertook a similar research project earlier this year in Australia, which was a first-of-its-kind study into Australian financial adviser wellbeing.  Sponsored by AIA Australia, key findings showed poor levels of mental and physical health among financial advisers including

·               73% of respondents had high levels of burnout from stress

·               67% had experienced some level of depression

·               61% had poor sleep due to stress. 

“At AIA NZ we’re committed to helping people live healthier, longer, better lives, and we want to understand how we can better support the NZ adviser market to understand and improve their own health and wellbeing,” Sam says. 

The research findings will highlight future opportunities and inform practical applications for improving wellbeing for NZ advisers, and will be shared widely to benefit the broader industry.
Take part and share your views! Please click the link to take part in the NZ Adviser Wellbeing Research

 

The NZ Adviser Wellbeing Research is open until 10 October 2021 to all financial advisers in New Zealand, not just those involved in the life insurance business. It is not a requirement to have previously placed business with AIA NZ.

 

To encourage participation and show our appreciation, AIA NZ will donate $10 to the Mental Health Foundation for every NZ Adviser Wellbeing survey response received (up to $2,500). Please share your views today; these findings will benefit our industry as a whole, and offer valuable insights into current states of adviser mental wellbeing,” Sam says.  ”

 

In other news

Cigna: Specific Injury short-form application is now available for adding to existing business. The form can be accessed on Adviser Hub.

Cigna: Cigna Live remains postponed until further notice

Partners Life: second educational module: Policy Ownership has been released

Fidelity Life: underwriting and medical forms are now on Adviser hub

Fidelity Life: signatures can be drawn straight on editable forms using a touch screen or inserted as an image

Fidelity Life: application forms are being updated so they can be filled in and signed by customers at home

Fidelity Life: if advisers need to contact Fidelity Life to update anything regarding applications advisers will need to cc the customer or attach their original email for records. This includes:Disclosing medical history, financial detail, occupational or even pastimes. Any changes to their application, for instance a change in sum insured, wait period or benefit period.Start date confirmations and similar notifications

 

 


CLSAP NZ ordered to pay $770,000, and more daily news

The details of a judgment in a case brought by the FMA highlight the importance of good governance and director education. In the details below I draw your attention particularly to the comments by the judge in the last five paragraphs in the quoted section below.

CLSAP Premium New Zealand Limited, formerly known as KVB Kunlun, has been ordered by the FMA to pay $770,000 for anti-money laundering breaches under the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act. The FMA made a case in the Auckland High Court in June claiming that CLSAP NZ didn’t comply with its obligations under the AML/CFT Act between April 2015 and November 2018. The FMA’s case was focused on transactions undertaken by 10 CLSAP NZ customers. The FMA and CLSAP NZ filed an agreed statement of facts where CLSAP NZ admitted:

  • failures to conduct enhanced customer due diligence in relation to 12 transactions;
  • failure to conduct customer due diligence in relation to one customer;
  • failures to terminate existing business relationships when customer due diligence could not be completed;
  • failures to report suspicious transactions / activity on nine occasions; and
  • failure to keep records as required under the AML/CFT Act

“CLSA Premium New Zealand Limited (CLSAP NZ) has been ordered to pay a total pecuniary penalty of $770,000 for breaches of the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act, following proceedings brought by the Financial Markets Authority – Te Mana Tātai Hokohoko (FMA).

The FMA filed proceedings in June 2020, in the Auckland High Court, alleging CLSAP NZ failed to comply with its obligations under the AML/CFT Act between April 2015 and November 2018. These were the first court proceedings brought by the FMA under the AML/CFT Act.

In a judgment determining the penalty, Justice Edwards noted CLSAP NZ’s failure to obtain any evidence of source of wealth or source of funds for some of the transactions where enhanced customer due diligence was required and “the inadequate information obtained when it was sought, is particularly concerning.”

The Judge said although CLSAP NZ had an AML/CFT programme, policies, and dedicated compliance staff, the mitigating effect of those features on the penalty  was undermined by several factors:

CLSAP NZ was warned by the FMA about its substandard AML/CFT programme in 2014 and, despite improvements, the FMA identified further issues in 2018

CLSAP NZ’s executive directors interfered with compliance, including by suspending information collected on source of wealth/funds in 2017, and one director vouching for a customer’s source of wealth/funds

Two CLSAP NZ compliance officers resigning over the relevant period due to disagreements with CLSAP NZ directors, with one director saying a “bendier” compliance officer was required

When one customer refused to provide information sought, CLSAP NZ was willing to accept inadequate information, including objectively suspicious information, to retain business.”

Click here to read more

In other news

Cigna: New customers to receive two months of free cover

Cigna: Existing customers that increase their level of insurance will receive the first two months of increased cover at no additional cost

Cigna: financial advisers will receive twice the servicing commission for two months for all new business and increases sold during the campaign period

FMA: Samantha Barrass appointed as new FMA CEO

FMA: FMA has said that they will take a ‘no-action’ approach when market participant breaches, or expects to breach, a regulatory obligation and seeks relief from the FMA

Financial Advice: Economic Update from Tony Alexander

Financial Advice: Toolkit for FAP Directors

Financial Advice: Financial Advice NZ 2021 Awards now open


Quality Product Research: Proposed rating for Financial Planning & Legal Advice

Introduction

We have recently conducted a full review on our “Financial Planning & Legal Advice” item. Please find the new sub-items below.

Proposed sub-items

FInancial final

Notes

The Financial Planning & Legal Advice benefit differs between insurers with a significant weighting on whether the company offers reimbursement on legal expenses. Fidelity is one of the major insurers who doesn’t offer this, and customers are only eligible for payment if their Life cover sum insured is over $100,000. Similarly, Momentum Life requires 3 years continuous cover before payment eligibility.

Another item worth mentioning is Asteron, Fidelity and Westpac directly stating that the benefit will be paid out to all policy owners – the maximum amount paid by most insurers is $2,500 so this particularly feature seems to reduce the value of the benefit.  

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


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


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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