Quality Product Research - Update to QPR's Outsourced Provider Statement

We have updated our Outsourced Provider Statement with a new section titled 'Conflicts of Interests'.  Like advisers, we must be transparent about where our revenue is generated and declare any interest conflicts. 

We have included the update below.  To access our complete Outsourced Provider Statement, sign on to Quotemonster and select 'About' from the dashboard.

Conflicts of Interest

We place a high value on our reputation for independence and the transparency of our research. In 2021 it is expected that we will receive revenue from between 150 and 200 organisations covering between 1,000 and 2,000 users of the service. The largest will contribute no more than 8.5% of our revenue. The top ten clients will contribute between 2.5% and 8.5% of revenue each. The revenue from insurers with current product offers rated in the system will be less than a quarter of our total, spread across the market. Because our revenue sources are diverse, we have no significant incentive to prefer one insurer over another - our research rating and process are transparent, so any perceived bias is quickly picked up by advisers and insurers and challenged.

 
 

Quality Product Research: value-based research supports evidence-based advice

We have recently had an influx of new users register on Quotemonster and would like to take the time to re-introduce our Research and Rating Methodology.

We think that using real-world data to make our research value-based makes it a lot easier to see which features and benefits really count, and which are just bells and whistles.

Our Four-Factor Research includes:

  1. Definition – the quality of the policy wording

In our definition score, we are purely looking for differences between policy wordings but will use the same sub-items across products (e.g., Agreed value, Indemnity, Loss of Earnings). We start with a score of 100 and usually make deductions according to restrictions and limitations in cover. Our approach differs for “Exclusions” as these take away from the policy so you will see this as a negative total score. A variation of this approach is also used in our rating for “Offsets.  

  1. Incidence – How likely the benefit is to be claimed

We collect data from re-insurers, statistics, underwriters, and medical experts to identify how likely each benefit will be claimed on.

  1. Amount – How much would be paid

Here we identify how much each insurer will pay. 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. For some benefits, we create a claims scenario to determine the amount paid as it is not as clear-cut.

  1. Frequency – How often the benefit would be paid

Here we determine if a claim can be made more than once. A client can only claim on life insurance once, therefore the frequency will be 100% however this is less clear-cut for Medical which is where we create a claims scenario that will reflect multiple claims over a lifetime of the policy.

We then multiply the four factors to obtain the Insurance Quality Score that you will see on Quotemonster.

Definition x Incidence x Amount x Frequency = Insurance Quality Score

Also, we don't so this alone. We take advice - from a variety of expert sources below, and also from regularly engaging with advisers and insurers. In fact, we are running two consultations right now, and receiving input from reinsurance research to update our trauma claims incidence rates. We support an evidence-based approach to advice. 

Methodology add on v1

If you would like a one-page explanation of why methodology matters please email or call the team and we can send you the methodology info-graphic. If your team has new staff members (or any that would like a refresh), we can invite them to our regular Quotemonster and Advicemonster training sessions (attendees include Insurer Product Managers and various other Industry members). Please feel free to email through contact details of those who are interested in attending (researcher@qpresearch.co.nz). 

 

 


Pop-up error on Quotemonster? Change your Ad Blocker Settings

Some of our users have recently encountered the pop-up error message below when logging into Quotemonster - and this is the fix: changing your Ad Blocker settings. 

Error

Recent updates to Chrome have automatically added an AdBlock feature to your browser which would need to be deactivated to resolve the issue. 

Please find instructions below on how to disable this feature for our website only. 

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If you continue to experience issues please do not hesitate to contact the Quotemonster team directly.  


Quality Product Research: Addition of AIA Cancer Care

We have recently added AIAs Cancer Care to our product range on Quotemonster. Cancer Care is a standalone, specialised product covering cancer conditions only (one of the first available in New Zealand).

As the costs related to Cancer continue to rise in our country, AIA has aimed to provide an affordable product with no minimum age requirement. Cancer Care is only available with a zero-excess option. However, should not be used as a top up cover with Private Health, and it is best to seek guidance from the insurer if the client has existing health cover with another provider.

You can select Cancer Care in the Product Settings screen and we have included a warning to ensure that advisers are aware of the pricing and research ratings when comparing to a comprehensive health product. 

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Please email us should you wish to discuss this further or would like to provide feedback.

Doreen Dutt, Research Analyst, Quality Product Research Limited, researcher@qpresearch.co.nz


Quality Product Research: Health Insurance - major review process commenced for Exclusions (feedback closure 30/05/2021)

Following on from our correspondence in mid-March, if you wish to submit any feedback or claims experience to assist us with our review on Medical Exclusions, please do so by 30 May 2021. We appreciate the feedback we have received so far and look forward to creating a new model which will also be posted for feedback in the next few weeks.


Quality Product Research: Built-in versus optional benefits - how we help to keep advisers safe when preparing comparisons

Quotemonster quotes products depending on the options selected - this is then automatically passed through to the research analysis if you have a research subscription. So unlike services which only work on feature lists, we appropriately rate the product that the client has actually been quoted. This is essential to the provision of compliant personalised advice.

For example: Life Cover Buyback on Accelerated Total and Permanent Disability (TPD) was quoted approximately 900 times in March. This option allows the insured to increase their life cover, back to the original value, after they have claimed on TPD (the TPD claim amount is deducted from Life cover). Terms and conditions are unique to each provider. 

Most insurers offer Life Buyback as an optional add on and at an additional cost, some insurers, in this example Asteron Life, has this as a built-in benefit. While TPD is harder to claim on than some other products, we find this to be a significant difference that might be of interest for long term policy holders. To reflect this on Quotemonster, we note this in the premium breakdown screen and the score for this benefit will be included in the research score for companies that build it in to the product. It is much safer for users than having to remember to tick or untick the inclusion of certain features. 

New TPDWe 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: Diabetes Mellitus (Adult) – Part Two

Following on from our previous blog post regarding Diabetes Mellitus, we would like to clarify that in the case of Type 2 Diabetes, in general insurers do not pay out upon diagnosis of this condition, the insured is required to display severe complications such as irreversible retinopathy, diabetic gangrene and/or neuropathy to be eligible for a claim payment. Type 1 is less defined, but most insurers offer partial payments upon diagnosis once the insured person is over 30. We have therefore renamed this item to “Severe Diabetes” to reflect these related complications. 

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: Medical - major review process commenced for Medical Amount Scores

Introduction

Medical costs in our country continue to rise significantly causing increases to Health Insurance. In New Zealand, the medical inflation rate is estimated to be around 9-11%

Although we update the amount scores with every product change it is time we reviewed all our medical amount scores.

We have therefore started the process of a major review.

Theme of review

The themes of this review are:

  1. A focus on how claims scenario differs between males and females
  2. Revising to ensure a clear and concise scenario used across all insurers

Review process

  • We have alerted advisers and insurers to our plan to do a review and asked for data on the themes above. Changes will be based on our view of all the information sent to us.
  • We will then publish our proposed scenario openly for feedback.
  • Further changes may be made at this stage.

Timeline for review

April – advise review started

May – review claims information

June – consult on claims scenario

July – implement revised scoring

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


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

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