Quality Product Research: Proposed rating for Coma (Trauma)

Introduction

Following on with our recent theme of revising ratings, we have reviewed Coma, re-assessing the item based on modern definitions.  A rarely claimed on benefit, yet significant coverage in the media when the insurer decides not to pay out.  

Below are the proposed items for Coma.

Coma

Notes

Momentum life is the only provider that requires the insured to be in a coma for 96-hours, while Westpac uniquely requires a permanent neurological deficit. Three insurers, Fidelity, Pinnacle and Westpac specifically exclude medically induced comas and a similar definition is observed in the use of life support systems and response to internal and external needs.

Few insurers continue to use the Glasgow Coma Scale in their definitions – here is a quick overview of what the scale demonstrates https://medictests.com/units/glasgow-coma-score

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


AIA to join Relief Run, and more daily news

AIA NZ has announced that employees will be joining the Relief Run, a global initiative for those in India affected by COVID-19. AIA NZ alongside AIA Australia will contribute $30,000 to World Vision’s COVID-19 India crisis appeal. Employees will also complete 5km near the AIA House on 9 June 2021. AIA NZ CEO Nick Stanhope has said that it is important AIA joins this movement.

“AIA NZ are joining their Australian colleagues in the global initiative Relief Run, as the trans-Tasman business contributes $30,000 for the people of India devastated by COVID-19.

On Wednesday 9 June, the AIA NZ team will be running or walking 5km around the Smales Farm precinct in Takapuna, Auckland, and encourage participation from anywhere in the world.

“This is a global virtual event so anyone can take part from wherever they are,” says Nick Stanhope, AIA NZ CEO. “The scale of the tragedy in India is devastating, and we have family members, friends and colleagues directly impacted by the COVID-19 crisis. I feel it’s important we join this movement, and take this small step to make a difference.”

Australian AIA Vitality Ambassador and endurance athlete Samantha Gash is the co-creator of Relief Run, which last year raised more than AU$1 million in support of Australian bushfire relief efforts. Locally the Relief Run will be supported by AIA NZ Vitality Ambassadors Dame Valerie Adams and Ian Jones.

“It’s great to be able to get involved in supporting my fellow AIA Vitality Ambassador Sam Gash, and the Relief Run,” says Ian Jones. “I know the funds raised will have a big impact on the relief effort in India, and will undoubtedly save lives.”

All funds raised by Relief Run will go towards the World Vision’s COVID-19 India crisis appeal, which is sourcing equipment and supplies including beds, oxygen concentrators, food vouchers and tents for temporary COVID-19 care centres.” Click here to read more

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In other news

AIA: $597m in claims was paid in 2020. This includes COVID – redundancy, income protection and death claims

MAS: MAS is sponsoring the ILANZ: In-house Lawyers Young In-House Lawyer of the Year award

Asteron Life: Jacques Van Heerden joins Asteron Life as BDM

From Good returns: Keeping up - but not with the Kardashians

 


KPMG insurer insights, and more daily news

KPMG has published a document that is based on insurer information ranging from market position, revenue, profit growth, capital strength, as well as profit and capital company. The document was prepared using publicly available data obtained from audited financial statements filed with the New Zealand Companies Office. There were several requirements applied to determine which insurer qualified to be included. These requirements are:

·       Currently registered as a licensed insurer in New Zealand on 31 December 2020;

·       Filed financial statements with the Companies Office; and

·        Described its main activities in the audited financial statements as either selling or reinsuring life insurance products. 

Those included were categorised into three groups:

·       Top 10 Direct;

·       Other Direct;

·       Reinsurers

Click here to read more

In other news

AIA: Senior Learning Designer role advertised

FMA: Liam Mason appointed as new General Counsel

MAS: PX Administrator/Project Coordinator role advertised


Quality Product Research: (Inbuilt) Child Trauma – Part Two 

A reader has queried whether QPR takes the sum insured into account in our Research Ratings.  And the answer is yes, we do consider the amount paid by each insurer. In fact amount paid are a vital part of a value-based assessment approach - and something we capture much better than simple feature lists of benefits do. 

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. In the scenario for Child Trauma, we have a claims amount of $100,000 and calculate how much would be paid out by each insurer.  

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Furthermore, based on adviser feedback we have corrected our ratings to reflect the fact that Asteron does include the option to convert their child cover to adult trauma at age 21. Interestingly, if the parent is on Trauma Recovery (TR) and considering converting their child cover to TR with Early Trauma they are required to complete an application. 

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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: Proposed rating for Benign Brain and Spine Tumour

Introduction

The World Health Organisation states that 130 different types of brain tumours exist. A benign brain tumour is a non-cancerous growth in a distinct area of the brain. The survival rates for patients with benign brain tumours are higher than others, however this depends on the size and location of the tumour within the brain.

Proposed sub-items

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Notes

There are some noticeable differences between insurers such as whether partials exist, or if the spinal cord or tumour on the pituitary gland is covered. We have tried to make the sub-items clearly demonstrate the variation between insurers.

Why is this important?

Although QPRs weighting of this item is low, it would be of high interest to those that have a family history of brain cancers. With a lot of insurers now having specialised cancer products we would like to ensure that our rating is relevant. 

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: Inflation Adjustment item update for Life Cover

Introduction

Inflation is often overlooked when customers are looking to purchase Life Cover. Although it may not be necessary for short term policies, it is however, a valued feature for long term policies (i.e., those that are in place for 20 years or more). 

Sub-items rating review

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Following up on adviser feedback, we have recently added the optional Inflation Adjustment feature to MAS increasing the accuracy of our rating for Life cover for this insurer.

Please note we currently only show the pricing difference between indexed vs non-indexed (as shown below) and the rating for optional items are excluded from the total rating you will see on your research report.

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Notes

The Inflation Adjustment benefit does not significantly vary among providers. Companies differ in expiry age, with Pinnacle being the only that expires at age 60. ANZ bank seems to be the only provider with a deduction for the sub-item “Excludes when premiums are waived”. A significant difference is whether the benefit is optional or included.    

Why is this important?

The benefit would be of high value for those looking to purchase long term policies. To not have this option would have a great impact in the future as you would understand that the cost of living will only increase as time goes on (and so should our Life cover). 

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


Daily news update: MAS weigh in on remote working, and other stories

In light of the past two months, Martin Stokes, MAS CEO, has said that the insurer is open to the idea of remote working. Stokes highlights the slow adoption of flexible work options in past years has been accelerated by the lockdown. MAS will use events during the lockdown to inform future working arrangements.

“Medical Assurance Society (MAS) chief executive Martin Stokes (pictured) says that the past six weeks have been a kind of mass social experiment, and, as a result, the workplace flexibility trends that were already emerging have been accelerated massively. He says the level of productivity in some areas has been surprisingly high in a remote environment, and, as a result, a much higher level of flexibility will become the norm.

“This situation has identified for us the opportunities that would otherwise likely have emerged over a much longer period of time,” Stokes told Insurance Business.

“Social trends would have influenced people’s thoughts around where they wanted to work, flexibility, different working arrangements, etc. But that’s really been concentrated into a six week-long social experiment where everybody’s had a taste of what that’s like enforced upon them.” Click here to read more

In other news:

Will corporates embrace remote working? - will this moment change everything, or will they slip back into old ways of working?

TAP: are offering to help advisers with claims

FMA: FMA urges public to pay attention to terms of insurance relief

Pepper Money: Pepper writes 600 NZ loans in first year


Latest Product Research

We have just distributed the latest product research database update (QPRV12_6). This version includes the following changes:

  • AIA - Changed Credit Rating and Agency
  • AMP - Changed Credit Rating
  • MAS - New policy wording for Life, TPD and Trauma
  • AMP Lifetrack - New policy wording changes
  • Fidelity - New policy wording - no rating changes
  • Add new Product Line Wellness to take AIA Vitality into account. This will appear on the Package score on QuoteMonster research if AIA Vitality is selected

 


Robo-advice vision: overlooking the insurance dimension

An article from NZ Herald explains that the concept of robo-advice is on the books for 2018. The FMA made an announcement after receiving 49 submissions with the majority of these in favour of robo-advice. Interesting to read the list of companies that the NZHerald note submitted on the law. This isn't the full list, just the ones the Herald picks out to mention, probably based on their familiarity with the brand names:

'The consultation period, which ran from June 21 to July 19, included submissions from: Cigna Life Insurance, Delta Insurance NZ, Fidelity Life Assurance, the Institute of Financial Advisers, the Insurance Council of NZ (ICNZ), Medical Assurance Society of NZ, Partners Life, Southern Cross Medical Society, as well as major retail banks ANZ, ASB, Westpac NZ, fintech start-ups and law firms.'

Look at that list again - seven of the organisations mentioned are insurers or insurance-focused. Yet this article exclusively covers the funds management sector, excluding insurance, probably because it is written by an investment-focused adviser. Readers should not make the same mistake - insurers in New Zealand are very interested in robo-advice. But moving past that, a number of useful points are made. One is about fee transparency - and the connection to improved requirements for the advice process under the draft new Financial Services Legislation Amendment Bill are important. Robo advice services should be subject to the same rules as human advice services, although specific regulatory requirements will differ, because the nature of engagement with the services, and how they are run differs.

Click here to read more.