Shareable Partners Life insurance knowledge articles, and more daily news

Partners Life has published client-focused insurance knowledge articles on Partners Life Academy and the Partners Life website. The articles are intended to be sharable material to simplify insurance concepts for clients. Advisers will find PDF copies of the articles in the Content Library under Assets.

Topics include:

  • Why your insurance is more expensive than your friend’s
  • Why does my premium go up each year?
  • How do insurance companies pay out big claims, when their customers only pay small premiums?
  • Where there’s a Will there’s a way – Why you should write a will
  • Wielding the stick of power: The importance of having a Power of Attorney
  • Guardians of the Parenting World: Who would you leave your kids to?
  • What is ‘Policy Ownership’ and why does it matter?
  • What are ‘Underwriting-Free Increases’?
  • What are Exclusions and Restrictions?
  • What are Premium Loadings?
  • What are ‘Special Acceptance Terms’?
  • Claims and Medical Requirements
  • PHARMAC or Non-PHARMAC? That is the question…

“Partners Life Academy now hosts a series of short, client-focused insurance knowledge articles that you may find helpful to share with your clients. These articles are also available on the Partners Life website in web format. You may find the PDF format on Partners Life Academy easier to share and discuss.

Insurance is a complex topic, and we know you spend significant time explaining how insurance works to different clients. What if there was a source of short articles you could share that have been specifically developed to help educate clients?

There is.

In Partners Life Academy, you will find these articles in the Content Library under Assets. Each article is one or two pages, and available as a convenient PDF download.”

In other news

nib: medical notes not necessary when submitting applications through nibAPPLY, unless nib specifically requests them

nib: many applications have required manual underwriting which resulted in a backlog of up to three weeks

FSC: Hon Dr. David Clark announced as keynote speaker at the Regenerations gala dinner. Mitchell Pham announced as keynote speaker at the Regenerations Conference

FSC: Outlook 2021/22 with Geoff Bascand in Wellington

FSC: Get in Shape Webinar Series, Code of Conduct and the customer experience with Steven Burgess

FSC: Launch of the latest FSC Research on 'Generation Rent'

Financial Advice: Mid-Winter Blues Webinar Series

Partners Life: Detailed schedule of Partners Life Product Changes and Benefit Improvements


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


Detailed schedule of Partners Life Product Changes and Benefit Improvements

Partners Life Product Changes and Benefit improvements 

Special Events Increase benefit limits increased from 75% to 100% for aggregated sum insured and new special event added

Counselling Benefit increased “use by” time to 12 months after claim

Financial and Legal Advice Benefit increased “use by” time to 12 months after claim and the maximum benefit increased to $3,000

Special Events Increase deal on offer to customers who missed policy anniversaries. Customers will have a have an additional 12 months added to their 60-day time limit that applies to their immediate past anniversary

Dependent Child Funeral Support Benefit updated to include unborn child age moving to 20 weeks or weighing more than 400 grams

Bed Confinement Benefit added under the daily care of a registered nurse as an alternative requirement

Alzheimer’s Disease, Dementia, Aplastic Anaemia, HIV (medical acquired), Multiple Sclerosis, Major Organ Transplant, Diabetes definitions changed in Trauma Cover

Non-surgical Benefit (Private Hospital and Serious Illness Benefits) annual limit increased from $300,000 to $500,000

New Public Treatment Top-Up Benefit means Partners Life will pay for some treatments after customer has covered treatment in public system.  

$5,000 maximum limit removed for Second Opinion Benefit (Private Medical Cover)

New cover for mental health consultations has a maximum of $2,500 under Surgical and Non-surgical Benefits (Private Hospital and Serious Illness Benefits)

Optional Specialists and Test now includes Podiatrist as a specialist for consultations

Cancer definition simplified in Excess Waiver Benefit.

 

Income and Expenses Cover

Income and Expenses Cover is designed to include sustainability features, remove over-insurance and moral hazard opportunity, and provide customer support

Benefit is the greater of pre-disability income less offset x 75% of life assured’s share of pre-disability monthly domestic expenses

The cover term for Income Cover and Expenses Cover is to age 65 with payments term options of 2 years, 5 years and to age 65

Pre-disability income is the same as Income Cover

Disabled for occupation classes 1-4 includes 10 hours or 75% of activities but it moves from own to reasonable occupation after 12 months

Customers will be considered to be in occupation class 5 if they have been unemployed, on unpaid leave, working less than 25 a week, incarcerated in a penal institution, or legally barred 12 months before disability

Income Cover offsets apply to Income Cover and Expenses Cover

Income and Expenses Cover has a payment term restriction that applies for medically unevidenced claims. These are not a fixed restriction for mental health claims

Unevidenced claims in the Income and Expenses Cover are paid for up to 12 months

Fixed payment terms reset for new disability for the Income and Expenses Cover, although customers must be back to full time work for more than 12 months to reset.

Disability within 12 months of claim for any reason is a recurrent disability

Income and Expenses Cover ancillary benefits include Bed Confinement Benefit, Return to Work Benefit, Increasing Income Benefit, Recovery Support Benefit (reduced to 6x SI), and Vocational Retraining and Rehabilitation Benefit (reduced to 3x SI or max $10,000)

Income and Expenses Cover ancillary benefits don’t include Lump sum TPD, Critical Illness Benefit, Specific Injury Benefit, Child Care Assistance Benefit, Death Benefit, and Return to Home Benefit

YRT option only applies.

Moderate Trauma Cover

Partners Life desires to get back to the principle of indemnification meaning that customers don’t need claims paid unless they have financial losses, and they don’t need to pay premiums that doesn’t indemnify against loss

Moderate Trauma Cover allows price efficiency, cutting out claims with immaterial financial consequences. This enables customers to afford higher sums insured.

Moderate Trauma Cover will mean future prices will be sustainable and will allow advisers to fine tune severity based on trauma solutions

Moderate Trauma Cover will have more defined conditions for Alzheimer’s Disease, Dementia, Aplastic Anaemia, Angioplasty, Blindness, Cardiomyopathy, Chromic Kidney Failure, Cancer, Diabetes, Heart Attack, Intensive Care, Loss of Cognitive Function, Motor Neurone Disease and Muscular Dystrophy, Multiple Sclerosis, Severe Rheumatoid Arthritis, Stroke.

Designed to be 20% cheaper than Trauma Cover (TC), price differential expected to grow

Designed to be a mid-range trauma cover (between TC and Serious Trauma Cover)

No built-in TPD, customers that need TDP will need to take TPD Cover.

Moderate Trauma Cover can be combined with TC and STC to create a severity-based trauma option.


Quality Product Research: Proposed rating for Agreed Value Income Protection: Occupational Retraining

Introduction

We continually review the ratings of all our benefits and have renamed “Occupational Retraining” to “Vocational & Rehabilitation Support”. Our intention with this review is to make clearer the difference between the features in readiness for more detailed research reports that are in development. Better describing the current variations and recognising that early intervention has the ability to prevent a client’s disability from escalating further and reduces more severe complications that may lead to a long-term claim – a positive outcome for the client, insurer, and employee.

Please find our proposed sub-items below.

Proposed sub-items 

Irsme

Notes

The monthly payment limit differs between insurers, however the necessity to offset is a similar feature. The major insurers (aside from Fidelity) offer coverage for Childcare Assistance, which is likely to be claimed more often than some of the other expenses. Partners Life receives a deduction for “benefit not available for all payment periods” as they do not offer their “Vocational and Retraining benefit” for payment periods which are less than 2 years. Similarly, AIA reduces their monthly payment to 6 months with 1, 2 or 5 year benefit periods. Fidelity is the only insurer that will not pay out the full benefit until the insured has returned to paid work (minimum of 20 hours). AIA, ASB and Partners Life are the only insurers that clearly offer assistance either during or after the waiting period - an important feature, as early intervention can significantly affect the length of a claim. 

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 Agreed Value Income Protection: Rehab and Home Modifications

Introduction

Following on from our previous post on “Vocational and Rehabilitation Support”, we have also reviewed “Rehab and Home Modifications” and renamed the item to “Home Modifications and Equipment”.

Please find our proposed sub-items below.

Proposed sub-items

Equip

Notes

The biggest variation can be seen in the monthly benefit limits. AIA and ASB have limited their payment to 6 months while Partners Life uses a tiered approach (the monthly payment reduces in line with the payment term).

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


Partners Life and Banqer join forces, and more daily news

Partners Life has partnered with Banqer to offer 1,250 students access to the Banqer platform. Partners Life was also involved in the creation of the life and health insurance Banqer module. The new life and health module introduces students to private medical and income protection as a way of managing personal risk. Partners Life has highlighted that this partnership aligns with their core value of minimising the underinsurance gap in New Zealand. Chief Marketing Office Kris Ballantyne has stated that the partnership allows Partners Life to ensure students are offered current and specialist education.

“Partners Life was founded on a core focus of closing the underinsurance gap in New Zealand and over the past year we have reviewed our sponsorships to ensure they align with the purpose of reducing the gap – and one of the best ways we can do this is by investing our expertise in increasing the financial capability of young Kiwis. Increasing financial literacy and awareness of risk at a young age not only inspires them to be confident with money but it also has the potential for this knowledge to be passed on through families to create generational change.

Come with us on this new journey and explore how Partners Life and Banqer are working together to make financial education accessible to more Kiwi students

Not only has Partners Life lent their technical expertise to the creation of the life and health insurance module with Banqer, but our sponsorship also pays for an additional 1,250 students to access the platform at no cost. Research shows normalising lessons through education pathways is an important step towards developing financial capability from a young age. When students go through the Banqer modules they are placed in real-life situations where they make their own assessments, decisions, and deal with the ramifications. The goal is that they become inspired to be curious, creative, and confident with money.”

Partners Life Chief Marketing Office Kris Ballantyne says “We have worked with Banqer to develop the content for the module, which is great because we can influence what and how students learn, and make sure it is absolutely current and the best specialist education available.”

Partners Life’s support in offering a life and health insurance module, which introduces students to private medical and income protection as a means to manage personal risk, adds to existing content covering banking, employment, income, savings, KiwiSaver, purchasing property and fire and general insurance. In working with Banqer as the dedicated life insurance category Support Partner, Partners Life joins an illustrious group of existing supporters including Champion Partner Kiwibank and existing Support Partners, Jarden and the Insurance Council of New Zealand.

Click here to find out more

 

Banqer partnership 28 June

 

 

In other news

 

FMA: 'Finfluencers' now on regulator's radar

RBNZ: Reserve Bank Committed To Its Kaitiaki Role


Partners Life product launch webinars, and more daily news

Partners Life is running webinars focused on the launch of the Income and Expenses Cover and Moderate Trauma Cover. The webinar will be facilitated by Steve Wright, General Manager of Product and Professional Development. In the webinar Wright will discuss the new products and how advisers can use the products to offer better solutions to clients. Wright will also cover enhancements to current products with a focus on the Private Medical Cover. The sessions will run for 90 minutes. The first webinar will be held 1 July at 9.30am and the second webinar will be held 5 July at 10.30am. Attendees will need an account to access the sessions and will have the ability to ask anonymous questions.

“Please join Steve Wright, our General Manager of Product and Professional Development, at one of the two webinars listed below. Steve will explain the details of Partners Life’s new disability and trauma products, and how advisers can use them to create solutions for clients. The webinar will also explore important enhancements to our existing products, in particular Private Medical Cover.

The webinar will run for approx. 90mins including questions and answers.

Following on from the webinar, advisers will have the opportunity to complete product accreditation on these new product developments via the Partners Life academy, thereby providing evidence of their continued professional development.”

In other news

Partners Life: Expression of interest for Evince training open

Suncorp NZ: How Suncorp NZ revamped its response to vulnerable customers


Cigna makes several new appointments, and more daily news

Cigna has made several appointments. Distribution General Manager David Haak has said that the new appointments highlight a number of things including Cigna’s commitment to ensuring customers have access to independent financial advice, Cigna’s growing market presence, and Cigna’s commitment to offering advisers quality service. Karen Smith is the new Distribution Operations Manager. Danielle Penberthy is the Auckland Business Partnership Manager team. Ian Greig is now part of the Christchurch Business Partnership Team. Christine Laverty has been appointed as the National Strategic Alliances Manager.

“Cigna distribution general manager David Haak says the appointments reinforce the company’s commitment to ensuring New Zealanders have access to quality, independent financial advice.

“This expansion reflects Cigna’s growing presence in the market and will help us to continue providing advisers with a market-leading service offering, Haak says.

The new team is made up of Karen Smith, who joins Cigna from AIA/Sovereign as distribution operations manager.

Smith is a well-known and respected face in the industry with more than 22 years of experience and will head up Cigna’s behind-the-scenes support for advisers.

Danielle Penberthy joins the Auckland-based business partnership manager team from Insurance/Mortgage Link and previously Fidelity Life.

Danielle brings over 19 years of industry and sales experience to Cigna.

In the South Island, Ian Greig joins the business partnership team from Asteron and will be based in Christchurch.

Greig has 30 years of experience in financial services, adviser and sales manager roles.

Christine Laverty has been given the newly created role of national strategic alliances manager. Laverty will work closely with dealer and corporate groups as well as new business opportunities.

“Partnering with advisers through high-quality, personal relationships, service and support is our top priority here at Cigna," says Haak.

"I’m proud to say no matter where you are in New Zealand you can be confident a member of our talented team will be by your side when you need us."

All appointments are now active in their new roles.” Click here to read more

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In other news

From Insurance Business News: Women in Insurance: How have equal opportunity policies developed?

Fidelity Life: Fidelity Life steps up for Canterbury farmers

Partners Life: Partners Life Product Launch 2021 with Steve Wright - General Manager Professional Development webinar #1 on 1 July at 9.30am

Partners Life Product Launch 2021 with Steve Wright - General Manager Professional Development Webinar #2 on 5 July at 10.30am


Partners Life announce new products, more daily news

Partners Life Chief Marketing Officer Kris Ballantyne announced two new products, Income and Expenses Cover and Moderate Trauma Cover. These new products were created based on the belief that insurers need to be sensitive in regards to pricing and affordability. The new IP product is designed to be an option for new and existing business. The cover is 25% cheaper than similar existing products. The Moderate Trauma Cover sits between the existing standard trauma cover and severe trauma cover. The cover is approximately 20% cheaper than other trauma covers offered.

“At a recent conference, Partners Life chief marketing officer Kris Ballantyne gave advisers an overview of their new products - Income and Expenses Cover and Moderate Trauma Cover. 

He told attendees that insurers "...need to be sensitive toward pricing and affordability for customers as prices go up".

"The truth about income cover is that the claims experience is declining fast for a number of reasons and has been for some time.

"Some of these reasons are self-inflicted wounds from insurers like ourselves...for example, mortgage repayment cover not offsetting ACC allowable income.

"This makes no sense objectively, but it's a good competitive edge. So it happened and everyone followed [and] that's a position we've created as an industry."

Ballantyne says in Australia the issue has become so bad that industry regulators have stepped in and started to mandate "...what products can look like, what products can be and how products are going to work".

"It is one of the worst product designs I have ever seen in my life, it actually offends me as a product person.

Ballantyne says some companies are taking steps to fix the problems with income cover such as better underwriting and raising prices to maintain profitability.

"The better long term solution is that we as an industry define how we are going to fix it rather than it being dictated to us."

Partners Life's response is the introduction of Income and Expenses Cover that Wright described as a disability income-style product with the key difference being it's about 25% cheaper than similar products already in the market.

"It also has an ability to account for household expenses as a loss of earnings paid position.

"But the definition of DI will change after one year to a reasonable occupation definition - by way of suitable experience and training - you get 80% of that same income.

"That's a way we protect against those long-lasting claims that start as one thing and transform into another.

He says the new product is an option for both new business and existing business as a retention strategy.

The second product launched is Moderate Trauma Cover, which sits between standard trauma cover and severe trauma cover.

"Trauma is going to keep getting more expensive, severe trauma has stayed more or less the same, but the gap between the definitions is widening."

Ballantyne used the example of the definition of cancer in trauma claims.

"It looks like the cancer definition on trauma requires malignancy, it requires spread - it doesn't.

"We are paying full trauma claims of hundreds of thousands, or in some cases millions of dollars, on stage zero cancers which are asymptomatic and shouldn't even be treated from a medical prognosis point of view.

"That is crazy and is only going to lead to more and more claims dollars being paid out and that price going up and up in the future."

Ballantyne says the severe trauma definition sits at stage four and stage three cancer where treatment is likely to fail.

"Where moderate trauma cover sits at stage two, at the point where it has spread, and does show malignancy and requires some form of treatment."

He says the Partners Life product will be about 20% cheaper than trauma cover offered today.” Click here to read more

In other news

Asteron Life: Suncorp NZ invests in a technology-enabled workforce

mySolutions: mySolutions recently formed a partnership with Prosper Group

FSC: 13 days left to get EarlyBird tickets

Strategi: AML/CFT Refresher Training - Classroom


AIA appoints new BDMs around the country and more daily news

High performance was a central theme in the appointment of several Business Development Managers. Tim Coltman, Anna Corbin, Rakesh Masalawalla, and Hannah Anderson have all been appointed as BDMs.

Tim Coltman has been appointed as the Southern BDM and will be responsible for servicing advisers based in the lower part of the South Island from Timaru and Dunedin through Central Otago to Invercargill.

Anna Corbin is the new Lower North Island BDM. Corbin is based in Wellington and is responsible for servicing advisers in the Whanganui, Wairarapa and Wellington areas.

Rakesh Masalawalla is based in Wellington and will be closely working with key advisers in the Wellington region.

Hannah Anderson has been appointed as the new Christchurch BDM. Anderson will be responsible for looking after the wider Canterbury region. Click here to read more


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In other news

AIA: Laura Holyoake has been appointed as an AIA NZ Vitality Coach

Asteron Life: is promoting its level to 100 option

Partners Life: seeking to find a new 'middle ground' with trauma and income protection products that are sustainable

XY Adviser: are promoting how to maintain deeper client relationships at scale