moneyblog

Southern Cross reveals some of its most unusual insurance claims of the year

This article from NZ Herald outlines some of the strangest travel insurance claims Southern Cross have received over the last six months.

Loss of funeral insurance grants adding to the burden on loved ones left behind

Southern Cross have recently announced to over 800,000 policy holders the removal of a $2,500 funeral allowance from policies effective 10 December. In this article funeral directors explain the huge burden that could have on families when it comes to funding a loved ones funeral stating "a lot of people tended to underestimate the cost of a funeral and staff also helped lower-income families to apply for the funeral grant provided by Work and Income NZ - a total of $2058.52.

The Southern Cross changes continue to be raised by advisers that talk with me. The funeral grant is a modest benefit, but others have caused more concern with the limits on treatments for skin damage being an example raised several times in the last few weeks. We shall be meeting with advisers and asking insurers about changes in the way Quality Product Research scores medical insurance. 

Medical Pricing Changes

On the 1st of November there were a number of changes to pricing from health insurers.

The following companies made increases to their rates for these products:

• AIA - Superior Health, Superior 3 Health, Real Health and Cancer Treatment Benefit products
• Southern Cross - Wellbeing One, Wellbeing Two and Wellbeing Modules
• Sovereign -  Private Health and Specialist and Tests with Best Doctors in Totalcare Max

The medical price comparison database has been issued to corporate subscribers.

 

Recent product and price changes

Recent product changes include:

• New Product release Asteron for Trauma, Life and TPD
• New Policy document for Cigna for Life and Trauma
• Southern Cross product changes effective 1 December

Recent pricing changes include:

• Pinnacle Trauma rates effective 20/9/18
• BNZ Trauma rates went up August
• Fidelity Life rates effective 1/7/18
• Southern Cross announced pricing changes from 1 Novmber

Southern Cross Health Society: medical policy changes

Southern Cross has published details of their 2018 benefit review. A series of changes are planned for implementation on 10 December, to apply to Wellbeing One, Wellbeing Two, and Ultracare. These include:

• Frequency limits for specialist consultations. Which excludes oncology, excludes skin-related specialist consultations, but these are subject to the skin lesion services benefit. It also excludes psychiatric consultations (which remain in their own existing benefit).
• There are a series of measures included in the skin lesion services definition with a reduced benefit limit, and skin surgery eligibility criteria.
• Limits on tooth extraction and obstetrics will apply to most plans.
• Some benefits are also being removed from some plans entirely, including: obstetrics benefits from First Cover plans, and the sterilisation allowance from most plans except Ultracare. The public hospital cash allowance, funeral allowance, and waiver of premium are being removed from all plans.

Extensive documentation of the changes, and plan types affected, can be found by for advisers in the Adviser Gateway section of the Southern Cross Medical Society. 

Southern Cross returns to a new home in the Christchurch CBD

Chief executive Nick Astwick said the shift from offices in Burnside to the CBD was like "moving back home. Having a place in an innovation zone rather than a corporate zone is really critical to our culture," Astwick said in this article.

 

Take Life Back

Southern Cross has launched a new brand platform 'Take Life Back' which encourages Kiwis to reclaim the things that are important to their health and wellbeing.

Click here to read more. Here are Southern Cross's tips to help inspire Kiwis live healthier lives.

Health/Medical Insurance Premium Rates Comparison v63 Update Issued

We have just sent out a new version of the medical comparison database, changes include:

• Southern Cross rates effective from 1/3
• Updated Sovereign policy fee

Southern Cross Gains Rainbow Tick

Southern Cross has been given the Rainbow Tick for a recent change made to the health insurers application forms which does not exclude those who do not identify themselves as either male or female. Click here to read more.

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.