moneyblog

Southern Cross Commission Changes

Several advisers have phoned or written to express dismay at the changes to service commissions by Southern Cross. The primary concern has been for the ability to provide effective service to customers under the new model. Secondary concerns have been the impact on adviser business valuations, which would appear to be significant. As it happens, I will be running a valuation seminar on the seventh of August, I shall cover the issues of service commission changes and agency agreement terms in more detail at that session. 

Product and pricing changes for OnePath, nib, Asteron Life, Southern Cross, AIA and Sovereign

An absolutely huge couple of weeks of changes: 

Pricing:

• Updated OnePath Mortgage Protection Prices effective 1 July
• Updated nib health prices effective 1 July
• Updated Southern Cross health prices effective 1 July
• Updated Asteron Life and Trauma rates effective 1 July

New Features:

• Needs Analysis – added Standalone and Accelerated options for existing Trauma and TPD insurance
• Research report – added a new page at the end explaining the QPR Research methodology

Research:

Completed a big set of changes, with some quite substantial shifts (see more posts later today and next week)

Eligibility rules:

• OnePath - Income Protection, Mortgage Protection and Trauma - changes in entry ages
• OnePath - Income Protection - age limit changed

New medical insurance premium database

The latest medical insurance premium comparison database is version 7_3. If you are a corporate subscriber you should have received your copy by now. It includes changes:

• Update nib rates effective 1/7/19
• Update Southern Cross rates effective 1/7/19
• Change Accuro rates for ages under 21 to dependent rate to make it consistent with other providers

Southern Cross awarded Most Satisfied Customers Award for the fourth year in a row

Congratulations to Southern Cross who were awarded Canstar's Most Satisfied Customer Award for the fourth consecutive year. 

“Southern Cross Health Society has been rated by its members as the market leading health insurer for its service quality, communication and performance throughout the claims process, winning our customer satisfaction award for the fourth consecutive year,” says Jose George, General Manager of Canstar New Zealand.

Click here to read more. 

Southern Cross releases claims stats

Southern Cross has released some stats as of the 31st of March 2019 stating they have 870,584 members which includes their oldest member of 107 years old. 

Then highest claim over the six month period cost $165,222 for gastrectomy, followed by two instances of spinal fusion costing over $128,000 each.

Click here to read more. 

Southern Cross invest in AI

Southern Cross has introduced a new ‘digital human’ which is powered by FaceMe. Although nameless, the adviser-bot is a novel product in the global health insurance industry. The introduction of the adviser-bot will allow it to answer basic questions which people may feel embarrassed to ask advisers. Southern Cross hope to potentially expand the role of the adviser-bot, so customers are able to better understand Southern Cross products. From InvestmentNew NZ, by David Chaplin.

Click here to read more.

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