Quotemonster training session!

We invite you to join our next training session with Kelly, our National Partnerships Lead, which takes place on Monday, 4 July 2022 10:30 AM-11:30 AM. 

In this introductory session, we will go over the basics of using the website including: 

  • How to directly compare two insurers for replacement business (Head-to-Head) 
  • How to download our detailed comparison and client friendly benefit overview or heat map report
  • How to add banks and non-adviser companies to your Research comparison 
  • How to find older policy documents

...and you’ll get a look at our new website.

All Industry members are welcome to join this session so please register your interest by emailing us on info@quotemonster.co.nz

Please feel free to contact us if you're also interested in a 14-day Research trial!

Happy Crunching!

Businesses’ insurance cover not keeping up with COVID-19 related changes, and other news

Insurance Business Mag spoke to Chris Brophy about businesses’ insurance cover in a post-pandemic world. Vero’s annual SME Insurance Index finds only 10% of small and medium sized enterprises (SMEs) working with brokers have made changes to their insurance, despite 79% of SMEs having made changes to their business.

Chris Brophy, executive manager, business at Vero, said the identification of this gap provides an opportunity for brokers to reach out to their SME customers and provide additional value. While the changes may be temporary for some business owners, for others they reflect a “new normal” where their insurance is no longer providing adequate cover.

Brophy also urged brokers to build trust and strengthen their relationship with SMEs, to see how each clients’ business has been impacted, and then provide advice to best suit their business needs.

With more than 90% of FAPs being SMEs, Russell Hutchinson says advisers should take this opportunity to “review their business cover themselves”.

More daily news:

David Clark says the COFI bill will crack down on sales incentives

Insurance Business NZ's Fast Brokerages 2022 report highlights three small brokerages that are thriving

Australia's life insurance companies form dedicated industry body: The Council of Australian Life Insurers (CALI)

Hugh Grant discusses marketing ideas for insurance companies to sell more

FSC releases June Regulatory Outlook and Year in Review for members

Could mortality be improved in NZ? And other news

Chatswood Consulting have taken a look at leading causes of death to identify areas where substantial life expectancy improvements could be made. We focused our analysis on reducing deaths during working life (from age 20 to 64). There are 2,562,000 normally resident New Zealanders in that age range. In 2019 there were 5,787 deaths in that age group. The top five causes of death are:

• Neoplasms (cancer)

• Cardiovascular diseases

• Self-harm and interpersonal violence

• Transport injuries

• Diabetes and kidney diseases

We compared New Zealand’s performance to the OECD average and then, where we already exceeded the average, to a country that is similar to ourselves in income per capita that has the best performance (lowest working life death rate) for the particular cause of death.

179 female cancer deaths per year could be prevented if New Zealand were just able to bring our cancer experience up to the level of the average for the OECD.

Were we to improve to the best performance in the OECD with cardiovascular disease we could reduce working life deaths by 595 lives per year.

NZ’s performance is already above the average for the OECD for transport injuries, but if we were to improve to the level of Ireland, we could save 95 deaths per year.

With diabetes the potential gains to the best performer in the OECD would save 69 deaths per year.

Our report details some of the known risk factors in each of these categories, possible opportunities for improvement, and the number of live that could be saved.

How can insurers help?
The insurance industry could lobby government to affect policy changes. Communicating directly with their customers to provide education, advise lifestyle changes which could provide benefits or even incentivise customers through things like fitness targets met result in lower premiums. Catching conditions early can also reduce mortality – special offers for screening health care services such as breast screening and mole maps could be incorporated into policies.

If you already subscribe to a Chatswood news or data product, just let us know if you would like a copy of the report, and we shall send it free of charge. If you are not a subscriber, please contact Kelly.pulham@chatswood.co.nz to obtain pricing information.

Already, several insurers promote good health. Some have more formalised programmes than others: such as AIA Vitality. A few have joined health initiatives, particularly those supporting good mental health, quitting smoking, and increasing activity levels. If you are interested to explore opportunities for the sector to engage more in this area, please drop us a line to arrange a time to talk.

More daily news:

FANZ members can now receive discounts at range of suppliers

Chartered Accountants have created a hub to help SMEs strengthen their cyber resilience

FANZ adds new dates for Professional Ethics Workshop

Consumer confidence slumps, rising living costs squeeze household budgets

Tim Grafton says the role of insurance in protecting us from climate impacts is not well understood

Resolution Life Australasia appoints Chief Customer and Operating Officer; General Manager NZ 

ACC appoints Andy Milne Deputy Chief Executive of Strategy, Engagement and Planning

The Advisor Platform offers group scheme for Professional Indemnity Cover

Legal and regulatory review for the life and health insurance sector

21 June 2022 - Financial Markets (Conduct of Institutions) Amendment Bill completed its Committee stage in Parliament, with the Third Reading still to come. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_93443/financial-markets-conduct-of-institutions-amendment-bill

21 June 2022 - Companies (Levies) Amendment Bill completed its First Reading in Parliament, with the Bill referred to the Commerce Select Committee. https://www.parliament.nz/en/pb/bills-and-laws/bills-proposed-laws/document/BILL_124080/companies-levies-amendment-bill

FMA’s 8-step action plan for applying for a FAP license, and other news

The FMA has published an eight-step action plan setting out the key steps needed to apply for a Class 1 or Class 2 FAP license. Applications need to be submitted prior to the target date of September 30 to be processed on time. The action plan takes you through deciding which license class to apply for, questions the FMA will be asking, how to assess your business against the questions, admin and login steps and how to get help. The check list has direct links to the related resources and tools you’ll need.

More daily news:

Finzo appoints Stacey Jacobsen as in-house compliance officer

FSC Conference 2022 early bird pricing closes 30 June

ANZIIF New Zealand Insurance Awards 2022 are open for submissions

Legal and regulatory review for the life and health insurance sector

20 June 2022 – FMA published its Auditor Regulation and Oversight Plan 2022-2025. https://www.fma.govt.nz/news-and-resources/reports-and-papers/auditor-regulation-and-oversight-plan

15 & 17 June 2022 – The Government Consumer Protection website posted information titled “Phishing makes up most scams reported to CERT NZ” and “Scammers using sophisticated attacks against New Zealanders”, with the latter reporting that New Zealand banks have joined forces with CERT NZ, Consumer Protection, and Te Tari Taiwhenua Department of Internal Affairs (DIA) to warn Kiwis of new threats from scammers.



Bernard Aw describes inflationary pressures on NZ, possible impact on businesses, and other news

Bernard Aw, economist for Asia-Pacific at Coface, has described intensifying inflationary pressures on NZ, warning that too strong an inflation rate has the potential to dampen economic activity.

The consumer price index hit 6.9% in the first quarter of 2022, the highest in over 30 years, lifted by double-digit growth rates in costs of housing and transport, as well as strong increases in household utilities and food. Core inflation rates quickened as well, due to demand pressures acting on limited resources, worsened by supply constraints.

The strong rise in consumer prices is expected to erode households’ purchasing power, and therefore constrain private consumption….. Consumers remained pessimistic about the economy in April after confidence fell to a record low in March, according to the ANZ-Roy Morgan Consumer Confidence index.

…..reduced profitability could push businesses to delay investment plans and cut back on output.

More daily news:

John Botica of FMA says there will be no rollback of the 15 March FAP licensing deadline - 'no license, no advice'

Financial Advice Code Committee has two new unnamed members

Diana Clement sets out five steps for financial wellbeing

World Continence Week starts today

Legal and regulatory update for the life and health insurance sector

The Financial Markets Conduct of Institutions Bill has a Special Order Paper added which has just been released and available here: https://legislation.govt.nz/sop/government/2022/0173/latest/096be8ed81c361f5.pdf. Of particular interest to Financial Advisers under the new regime will be the changes to definition of intermediary and exemptions that are intended to reduce the overlap between a product provider's fair conduct programme and the conduct obligations that Financial Advisers will have through their own licence.

Cigna responds to $180,000 FMA fine, and other news

The FMA has announced OnePath Life and Cigna Life will jointly pay $180,000 to the FMA after admitting liability for breaching the fair dealing provisions of the FMCA. While OnePath Life and Cigna Life did not directly make any misleading representations, their agent, ANZ was found to have. Tamsyn Parker writes in NZ Herald:

The breaches relate to misleading representations ANZ made when issuing monthly credit card statements to certain ANZ customers who held credit card-repayment insurance (CCRI) policies with Cigna and OnePath.

The bank was found to have charged customers for credit card-repayment insurance (CCRI) which offered no cover or benefit and issued duplicate policies between April 2014 and November 2019.

Cigna says impacted customers were contacted and issues put right in early 2020, before it offered an enforceable undertaking to the FMA re the discontinued CCRI proposition.

Cigna also records its commitment to developing and maintaining effective policies, systems, and processes to support good customer outcomes and to prevent issues of the kind referred to in these undertakings from occurring in the future.

More daily news:

AIA launches 'AIA MyCare' portal for advisers and corporate partners

Jo Mason of NZbrokers shares opinion on the challenges and opportunities in the insurance market

Zurich Australia and New Zealand announces new sustainability targets and initiatives

Kath Johnson leaves Fidelity Life for GM Channel Strategy & Delivery role at AA

ANZ appoints Amanda Owen Chief Financial Officer

Legal and regulatory update for the life and health insurance sector

16 June 2022 – APRA released the Australian annual life insurance supplementary statistical tables and biannual life insurance institution-level statistics for December 2021. https://www.apra.gov.au/news-and-publications/apra-releases-life-insurance-supplementary-statistical-tables-and-1

16 June 2022 - Minister of Commerce and Consumer Affairs, Hon David Clark, April 2022 diary released with the following potential financial services sector related meeting noted:

  • 7 April 2022 – Payments NZ (Steve Wiggins, CEO)


16 June 2022 – The FMA released an update on the KiwiSaver default scheme provider change process. https://www.fma.govt.nz/news-and-resources/fma-stories/update-on-the-kiwisaver-default-scheme-provider-change-process/

16 June 2022 – NZ Markets Disciplinary Panel appoints a new Chair, Deemple Budhia, a Partner at national law firm Russell McVeagh, to replace Rachael Reed. https://www.nzx.com/announcements/393893

16 June 2022 – IRD announced changes to rates for UOMI (Use of Money Interest), FBT (Fringe Benefit Tax (interest on loans and DRR (Deemed Rate of Return) on attributing interests in Foreign Investment Funds. https://www.taxpolicy.ird.govt.nz/news/2022/2022-06-16-rates-updated

FSC Future ready: a wake-up call

Several wake-up calls were made during the Financial Services Council’s Future Ready conference, in Queenstown on June 14th. The first, and perhaps the most shocking, was delivered by John Botica, Director of Market Engagement and Acting Director of Regulation at the FMA. Botica explained that only 50% of current transitional licence holders had either completed or commenced their application for full licence status. That means half of all the financial advice businesses currently in operation have not even commenced the full licence application process. They need to do so by the end of September this year to be reasonably assured of achieving full licence status by 15 March next year. We encourage everyone to get moving with this process.

Clayton Copleston, of Heathcote Investments, pulled no punches in telling the advisers in the audience that they needed to focus on how to add value. That did not mean index trackers. It meant accepting the reality of lower returns and the need to constantly demonstrate value above merely achieving an index value.

Tony Stephens, of Business Health, underlined the fear that some advisers have of asking their clients what they think of the service that they offer. Advisers need to be able to articulate how they add value.

Sam Tremethick, Chief Partnership Insurance Officer at AIA, shared some sobering statistics about adviser mental health which reflects the uncertainty and pressure that regulatory change and COVID-19 has brought upon the adviser sector. Sam suggested that advisors look to mentorships and make time away from work to recover.

Congratulations to Richard Klipin and the FSC team on another excellent event. We’re looking forward to the FSC Conference 2022 in September.

FSC Future Ready June 2022 HIghlights.docx

Pictured: Trisha Edmonds, Head of Advisory Distribution Funds at ANZ Investments, interviews Clayton Coplestone, Principal at Heathcote Investment Partners; Sam Tremethick, Chief Partnership Insurance Officer at AIA; and Tony Stephens, Principal at Business Health, on how advisers can get Future Ready.


How will your organisation tackle climate change?

You just have to look at the news recently to see any number of articles related to climate change, whether it’s the UN climate change report calling out fuel-inefficient SUVs through to councils proposing targeted rates to reduce emissions. At every level of government, changes are being required of businesses and consumers to reduce emissions. Our clients are increasingly asking the insurance industry what it is doing to help.

Perhaps, in part, because the sector is a relatively low emitter of greenhouse gases this has not been a major focus for us. The legal requirement to make climate related disclosures became law only in October last year. For general insurers disclosures have been focused on increased risks from extreme weather events. For life and health insurers the requirements are more focused on risks to investments as industries transition. Clients and potential clients are becoming increasingly interested in how their expenditure supports their environmental and social concerns. Some are seeking out certifications or other evidence that the companies they do business with have values consistent with their own.

Here at Chatswood Consulting we want to develop a high-level understanding of insurers’ Environmental, Social and Governance (ESG) policies. Is your organization investigating the effects of climate change on your business? Do you already have strategies in place? What sustainable practices are you incorporating?
We’ll be reaching out soon to find out how the industry is doing in this arena.

This information will, initially, form part of a view reflected back to industry in our quarterly reporting to enable clients to better benchmark themselves against other industry participants. In the medium-term we plan to include measures of ESG policies in our company research.

Legal and regulatory update for the life and health insurance sector

15 June 2022 – XRB released a summary of the submissions it received on the Strategy, and Metrics and Targets sections of its Climate-related Disclosures. https://www.xrb.govt.nz/

14 June 2022 – RBNZ announced that the first stage of the Reserve Bank’s deposit takers Liquidity Policy Review has shown broad support for the review. https://www.rbnz.govt.nz/hub/news/2022/06/proposed-approach-to-liquidity-policy-review-receives-broad-support

Quotemonster training session

We invite you to join our next training session with Kelly, our National Partnerships Lead, which takes place on Wednesday, 22 June 2022 10:00 am-11:00 am

In this introductory session, we will go over the basics of using the website including: 

  • How to directly compare two insurers for replacement business (Head-to-Head) 
  • How to download our detailed comparison and client friendly benefit overview or heat map report
  • How to add banks and non-adviser companies to your Research comparison 
  • How to find older policy documents

...and you’ll get a look at our new website.

All Industry members are welcome to join this session so please register your interest by emailing us on info@quotemonster.co.nz

Please feel free to contact us if you're also interested in a 14-day Research trial!

Happy Crunching!

How health insurance is offered to clients

My latest post on goodreturns is about how health insurance is mainly offered to clients these days. It is a story revealed by data. I should mention that subscribers to our quarterly data analysis package receives the underlying information behind stories like this, as well as quarterly thematic analysis. Do ask me or Kelly Pulham for a copy  of a recent example if you would like to know more.

Study finds people who have COVID-19 infection are more likely to be hospitalised or develop diabetes or hypertension, and other news

Insurance Business Mag reports on data from 7,000 Discovery Health members who recovered from acute COVID-19 show a higher risk of developing diabetes or hypertension in the months after their illness. More work needs to be done to discover if this is because more people are seeking care and are therefore more likely to be diagnosed with the ailments. The study noted that the risk of dying is no higher but there are other ongoing health impacts.

  • A 1.38-fold higher risk of developing diabetes within two to 12 months of recovering from COVID-19
  • A 1.11-fold higher risk of developing hypertension in that period
  • A 2.8-fold higher hospital admission risk in the first month after recovering from an acute COVID-19 infection and a 1.5 times higher risk two to 12 months after recovery
  • 31% of those who recovered from COVID-19 experienced headaches, 14% experienced problems sleeping and shortness of breath, 12% reported dizziness, 11% a lack of concentration and 10% muscle and joint pain
  • 43% reported difficulties in performing activities necessary for daily living. 30% had problems concentrating, 20% walking, 16% had problems with their sight and difficulties with hearing, communicating and self-care were also reported

More daily news:

Hays research shows 57% of NZ insurance employers believe skills shortage will impact on operations or growth

Computer Emergency Response Team (CERT NZ) publishes guide to help prevent business from falling victim to cyberattacks

Today is World Blood Donor Day

legal and regulatory update for the life and health insurance sector

10 June 2022 – XRB published a working draft of guidance for industry bodies, consultants and entities engaged in developing climate-related scenarios at a sectoral scale. It outlines a six-step process that shows how the Task Force on Climate-related Financial Disclosures (TCFD) guidance can be put into practice by sectors to promote consistent, comparable and high-quality disclosures. Draft guidance for individual entity-level disclosures will be published with the exposure drafts in July 2022. https://www.xrb.govt.nz/standards/climate-related-disclosures/resources/

10 June 2022 – Chapter Zero NZ published a Sector showcase: Addressing Climate in the Banking Industry. https://www.chapterzero.nz/news/sector-showcase-banking-industry/

13 June 2022 – NZX announced the appointment of five new members to the NZ Markets Disciplinary Tribunal. The Financial Markets Authority has confirmed the appointments. The new members are Jenn Page, Charles Bolt, Darren Manning, Gretchen Williamson and Sarah Miller. https://www.nzx.com/announcements/393639

Hays survey NZ insurance employees about their intent to stay, pay raises and benefits, and other news

Insurance Business NZ reports on how Hays Salary Guide for FY22/23 spoke to insurance employees in New Zealand and Australia and found that 64% of New Zealand employees saying they intend to remain with their current employer.

52% saying they are more confident to ask for a pay raise this year, and 61% said they would benefit financially if they switched jobs.

… 55% of employers said they offered higher salaries than originally planned.

The top three benefits desired by employees are over 20 days of annual leave, more training (either external or internal), and a budget for home office setup or supplies.

More daily news:

Crombie Lockwood believes COFI Bill will cause a shift in NZ insurer's corporate conduct and culture

BNZ reveals refreshed brand promise 'Let's Find a Way'

Aon points to significance of catastrophe modelling

Tim Grafton says we need to act now to improve resilience to climate impacts if insurance is to remain widely available and affordable over the decades to come

Statements of advice research available for institutional subscribers

In a recent quarterly life report for our institutional subscribers we offered a summary of research into the content of statements of advice. A brief introduction to the research can be gleaned from this article on goodreturns. If you would like more information, please drop us a line and we can point you to the relevant quarterly report or send you that section.