Life price comparison database update

We have updated the life price comparison database, version 113, to reflect the changes to Cigna's pricing, which were extensive. Corporate subscribers should examine the update notes that have been sent with the database and the change report function. Advisers should check out comparisons on Quotemonster to see the effect of the changes which involved some increases - but also some notable decreases - which tended to favour larger cover amounts and the 90 day wait period for IP / MP. 


Cigna implements new commission, and more daily news

Cigna has implemented several new changes to their commission model. Advisers will now receive 100% of Cigna’s documented commission rates, regardless of their persistency rates or group affiliation. With this change, advisers will now have the power to decide how commissions are split. Commission payments will now begin from month two. Cigna has said this change was introduced in acknowledgement of the extra time and effort advisers are putting into their businesses. Another change is giving adviser the option of choosing the payment period with the as earned option. Advisers can now choose between upfront payment and spreading the payment over the first two years. Advisers that choose to spread payment over two years will ensure that there is no clawback if a policy lapses during that time. Cigna has added more selection to their discounting options. These options have been linked to spread commissions.

Renewal Commissions will now be paid from month two

We recognise that the servicing of your customers doesn’t start from month 13, it starts from the moment their policy is issued.

With the new regulatory environment you’re now operating in, we acknowledge the extra time and work you’ll be dedicating to your business. So we want to support you further as you work harder to protect your customers.

From now on you’ll be paid all the commission

All Advisers, regardless of persistency level and/or Group affiliation, will now receive 100% of our documented commission rates. We can help facilitate any splitting of commissions you need to do, but you are in total control of where it goes.

We’re introducing an ‘as earned’ payment option

Choice matters. So we’re giving you option to receive your commission payments over the first two years, instead of upfront. With this option there’s no clawback if a policy was to lapse in the first two years.

More flexibility with our discounting options

To provide you more flexibility and options to suit your customer’s needs, we’re adding more selections to our discounting options and we’ve linked these to our spread commissions.

Updating our commission to include best in market features reflects our ongoing commitment to you and helps ensure New Zealanders have continued access to the quality advice you provide.”

Cigna commission table April 16 2021 3
Cigna commission table April 16 2021 3
Cigna commission table April 16 2021 3

In other news

FSC: Register for Breakfast with Hon James Shaw

FMA: FMA targets fees charged by fund managers

ACC: ACC estimates 90 per cent of injury claims are preventable

From Good returns: From army life to life insurance - a big gun leaves the industry

Cigna: Insurance for living campaign 


March peaks interest in comparison

An all-time record high of 2,504 users on quotemonster.co.nz in the last 28 days confirmed that it was a very, very, busy March. More advisers than ever are interested in comparisons. Advisers tell us that consumers like comparisons. Guidance around replacement advice requires that either a comparison is done, or the risks of proceeding without having done a comparison are explained - for example, in this report. It seems that advisers, regulators, and consumers all agree that comparisons are an essential part of financial advice. This situation is dynamic - you cannot form a view and then keep expecting that to hold true - every quarter, on average, four insurers change the pricing for eight product lines and the policy wordings for five product lines. So if you haven't compared, how can you be confident in your recommendation? 


Quotemonster and Advicemonster updates - live now

We have updated the quotemonster site, on Thursday, and made the following items live, for more detail see below:

  1. New SOA report content setting options allow you to create more customisations for your SOAs if you are an Advicemonster subscriber. To access these click settings, then SOA Setting, then Report Content Setting
  1. New SOA template for Need analysis recommendation note pad - bring through all your calculations from the recommendation notepad in Advicemonster to quote and to the SOA.
  1. New nib rates applied to the site
  1. FSP input validation for user setting and register form - so it is important that your FSP number matches your name and the entry on the FSPR. A reminder that sharing your login is a breach of our terms and conditions and unusual account activity (like switching user names) will be picked up and we will be contacting account-holders that actively share their logins. 
  1. Improved the health product breakdown table in the research report.
  1. Applied Fidelity level standalone trauma maximum level term rule
  1. Changed Partners Life IP and MP max-age to 57 - as we do not quote reduced commission versions of income protection
  1. Update Web version number to v 3.8.7

Congratulations to Albert, Doreen, and the whole team on a big package of updates. Our special thanks to the advisers sending us issues and suggestions for improvement of the Advicemonster process and the SOAs. 


Westpac Withdraws Gold Term and Gold Disability Income Cover

As of 15 March 2021, Westpac no longer offers Gold Term Cover (death, critical trauma, TPD) and Gold Disability Income Cover (Indemnity Income Protection). Existing policy holders, however, can continue to make amendments (i.e. increase and decrease cover amounts). Westpac Life continues to offer term life, TPD, critical illness and Agreed Value income protection in other products. For further information please click here


nib announce changes to pricing, and more daily news

nib has announced that there will be a number of price changes from 1 April 2021. Pricing changes have been credited to the continued increase to nib’s claims’ costs. Current members will have the changes applied after their policy anniversary, if their policy anniversary doesn’t fall between April to June. nib has highlighted that price changes will vary for each member as price changes will depend on benefits, options and excess.

 

“Every quarter, nib reviews its health insurance premiums to ensure they are sufficient to cover both current and future claims, as well as to accurately reflect underlying costs.

 

Our latest review has identified that nib’s claims’ costs continue to increase, and as a result, our health insurance premiums need to be adjusted accordingly. These changes will vary between products, and will affect both current members renewing their policies and new policies sold this quarter.

 

Current members’ premiums are reviewed annually at their policy anniversary. If your client’s policy anniversary does not fall within the April – June period, there won’t be any change to their premiums until their next policy anniversary.

 

For the upcoming quarter, there is an average 9.7% annual increase for renewing policies.

 

Please note that the change in premium for each member will vary depending on the benefits, options and excess they have selected, who the policy covers and whether the premium includes a policy fee.

 

Other factors that can contribute to premium changes during the policy year include:

 

•  changes in cover terms for any of the people covered

•  changes in the ages of people covered

•  adding or removing people from the policy

•  a move from group cover to individual cover terms and conditions

•  loss of a Premium No Claims Discount or change in a five-year age band (these only apply to some legacy products).” 

Price changes will automatically be updated for quotes from 1 April. Quotes that were started before 1 April will be use current prices if the application goes into force within 30 days. Price changes for Ultimate Health Max will be spread across each quarter, most changes for Ultimate Health will happen on 1 April. The new rates will automatically be updated on nib illustrations and nibAPPLY. Advisers using nib Illustrator or Fidelity Life desktop Apollo will need to download the update before 31 March 2021 to ensure new rates are automatically applied. Prices changes will not affect group health as a whole, instead price changes will affect individuals that have enhanced cover terms, added family or added optional benefits.

 

“Premiums included in quotations for prospective new members will be updated from 1 April 2021.

 

For Ultimate Health Max: Premium increases are spread across each quarter throughout the year.

 

For Ultimate Health: Most of the annual increase occurs on 1 April each year.

            

The new rates will be automatically updated in nib illustrations and nibAPPLY. If you are using nib Illustrator and/or Fidelity Life desktop Apollo quoting software, make sure your quotations include the upcoming premium changes by downloading the update before 31 March 2021. Once you have downloaded the update, these rate changes will automatically apply to new and existing quotations after 1 April 2021.

 

Quotations dated before 1 April 2021 will be honoured if the application goes into force within 30 days of the quotation date. Note that quotations dated from 1 April 2021 will only be accepted at the new premium rates. 

 

For advisers who service group health insurance schemes, please be aware that the premium increases referred to above only apply to the individual members within a group where they have:

 

·       enhanced their group health insurance cover terms; or

·       added family or added optional benefits that they pay for personally.

 

The increase will apply to the portion of their health insurance premium relating to the enhanced cover terms and optional benefits, in the same way as those of members with individual covers. The member’s direct debit or payroll deduction will also change accordingly. Any increase in the group scheme’s premiums will be determined according to the scheme terms and conditions and will be paid for by the scheme owner.” 

Screen Shot 2021-03-18 at 3.13.03 PM

Screen Shot 2021-03-18 at 3.13.18 PM

In other news

 

TSB Bank: Larissa Vaughan set to leave CEO role at Kiwi Insurance in April to become GM Regulatory Affairs and General Counsel

Kiwi Insurance: From 9 April 2021 Kevin Crowley will be the acting CEO of Kiwi Insurance

Kiwi Adviser Network: The Kiwi Adviser Network launches


Cigna premiums to increase, and more daily news

Cigna has announced that from 15 April 2021 there will be changes to underlying premium rates on Life, Trauma and Disability covers across Assurance Extra, Business Assurance, Business Extra and Agribusiness Extra. Changes to Life, Trauma and Disability cover are a response to feedback and market developments. The price changes represent the changes. The price changes will be applied for new customers but current customers will have the new rates applied on their next premium review date after 15 April 2021. Applications that are submitted  before 15 April 2021 and issued before 15 May 2021 will not be immediately affected by the price changes. All changes are listed below:

 

·     Life cover rates on Assurance Extra, Business Assurance, Business Extra and Agribusiness Extra are increasing by 3% for yearly renewable, 5-year level and 10-year level premium structures.

·     Alongside this we’ve increased our large sum assured discounts for customers with over $500,000 of life cover.

·    Trauma cover on Assurance Extra, Business Assurance, Business Extra and Agribusiness Extra are increasing by 3% for yearly renewable premium structures.

·    Accelerated Complete Disablement Cover on Assurance Extra, Business Assurance and Agribusiness Extra are increasing by 3% for yearly renewable premium structures.

·    Disability covers including Income Cover, Mortgage Repayment Cover and Premium Cover are increasing dependent on factors including age, gender, wait period and benefit period. The increase will generally vary between 1-10%, however in some cases customers will experience a decrease.

 

“We wanted to give you a heads up about upcoming increases to the underlying premium rates on our current Life, Trauma and Disability Cover pricing across Assurance Extra, Business Assurance, Business Extra and Agribusiness Extra.

 

The new underlying rates will come into effect on 15 April 2021.

 

Over the past year in response to feedback, and in line with market developments, we’ve made a number of enhancements to our core Life, Trauma and Disability cover to make it easier for customers to access support when the unexpected happens.

 

These new competitive rates reflect the recent enhancements and will contribute to the long-term sustainability of our products while remaining good value for your customers.

 

For new customers: The refreshed rates come into effect on 15 April 2021 for all new policies.

 

For existing customers: The new rates will be applied to existing customers at their next premium review date from 15 April 2021. Customers will receive notification of their new premiums via the renewal letter which is sent prior to their premium review.

 

Any applications submitted before 15 April 2021 and issued before 15 May 2021 will be honoured at the old rates and will not be subject to the new rates until the first premium review.” Click here to read more 

In other news

FMA: the FMA has issued a public warning to Roger David Gannon of Gannon Insurance

Cigna: Simon Prentice to join Cigna as Business Partnership Manager based in lower South Island

Cigna: Sharon Duffell new Christchurch Senior Underwriter in the New Business & Underwriting Team

Cigna: Multi-Benefit Discount extended until 30 June 2021

 


Quality Product Research appoints new General Manager

We are pleased to announce that Treena Jordan has been appointed General Manager of the team at Quality Product Research Limited. Treena has an extensive background in product development and is extremely adviser focused. Over the last 20+ years Treena has worked for AIA, Sovereign, and Cigna as well as life insurers in both Australia and New Zealand.

Due to the increasing scrutiny with the new regime ahead we believe it is essential to grow our resources. Having Treena on board now means that we will have two full time product experts in the team. Treena has substantial experience working with advisers and is a very industry-focused person. Her involvement working with advisers around business insurance will be extremely valuable. Those of you that have worked with Treena in the design of business insurance products will be aware of her passion for good insurance cover.

As part of the change in team you can expect to hear more from Doreen and Treena  as they are keen to hear from you about your experiences with our product providers and how you use Quotemonster, Research Reports, and Advicemonster.

Treena


Asteron Life premium increases, and more daily news

Asteron Life has made changes to premiums effective 21 September 2020. The introduction of premium increases has been in response to claim costs being higher than expected. The premium increases will only impact customers on a stepped premium. Depending on customer segments, increases will be between 0% - 6%. Please refer to the table below. 

“These increases are in response to higher than expected claim costs observed in our most recent claims experience review. Based on this, we have adjusted our long-term claims outlook and updated premiums to ensure that our business will remain sustainable to support our customers both now and in the future. We perform regular reviews to keep any increases small, and as manageable as possible for customers.”

The new rates will not apply to quotes created before 21 September, but the quotes will be valid for only 30 days. The premium changes will affect existing customers after their next policy anniversary or after 21 October 2020.

“The new rates will apply for new customers from 21 September 2020 and will be reflected in policy documents. Quotes created before 21 September will be valid for 30 days.

The changes will apply for existing customers from their next policy anniversary on or after 21 October. Customers will not see any specific reference to the change in rates, but renewal notices will continue to mention that premiums can increase due to changes in market conditions.”  

 

The increases are higher, generally, for female lives than for male lives in trauma. They are also higher for both younger lives and older lives, across all product types, while the changes for lives at the main ages of acquisition (between about age 35 and 50) are more limited, probably constrained by competitive pressures. More details will be given in the forthcoming quarterly life and health report. 

 

Product 

Benefits 

Increase 

Personal Insurance 

 

Life cover 

0-6% 

Trauma recovery cover
Life cover buyback benefit Trauma reinstatement benefit Continuous trauma benefit 

Standalone 0-6% Accelerated 0-4% 

Income protection cover Mortgage and rent cover Mortgageandliving cover Immediate assist package Specific injury support benefit 10-hour benefit 

0-6% 

Business Insurance 

Life cover 

 

0-6% 

 

Trauma recovery cover
Life cover buyback benefit Trauma reinstatement benefit Continuous trauma benefit 

Standalone 0-6% Accelerated 0-4% 

SmartLife 

 

Life cover 

 

0-6% 

Trauma recovery cover Trauma (standard)
Trauma deluxe
Life cover buyback benefit Trauma reinstatement benefit Continuous trauma benefit 

Standalone 0-6% Accelerated 0-4% 

Mortgage repayment option (disability) 

 

0-6% 

SmartLiving 

SmartLiving value SmartLiving deluxe 

0-6% 

SmartBusiness 

 

 

Life cover 

 

0-6% 

Trauma recovery cover Trauma (standard)
Trauma deluxe
Life cover buyback benefit Trauma reinstatement benefit 

Standalone 0-6% Accelerated 0-4% 

 

Income Protection 

Income protection (personal and business) Specific injury support benefit 

0-6% 

 

 

 

In other news

Southern Cross: AA Insurance and Southern Cross recognized for diversity efforts

Southern Cross: Coronavirus: Did lockdown actually make some of us happier?

nib: nib outlines strategy of 'data-driven personalisation'

FSC: register for Generations 2020 digital pass