Here is the story of one family's story about how private medical insurance was essential in diagnosing and treating colon cancer. 'Private medical insurance is the only reason my husband is still here, as at 36 years old he was too young to qualify for public screening programs.' Click here to read more.
This story about a denied claim looks to feature questions of insurable interest.Link.
Here is an interesting article by Andy Symons titled 'What if financial services had ingredients on the product’s packet?' 'Whether it’s for ethical reasons, an allergy or to stay true to a diet, checking the ingredients label when out shopping at the supermarket is now as common as having a bank account. But what if banks were required to put the ingredients on the labels of their products and services?' Okay, that's not strictly about insurance, but it is topical. Are you okay with your KiwiSaver investing in the shares of manufacturers of cluster munitions?
Alan Rafe, CEO of Quality Product Research Limited recently produced a discussion document and talk comparing advised+underwriting and non-advised/no-underwriting processes. You can get the full presentation below.
The Finnotec 2016 Conference will be held on Thursday the 10th of November at The Hilton in Auckland. This event will showcase the latest financial technology products from NZ. You will also gain an appreciation for what to expect with the growth of technology adoption in the financial services sector based on the experience overseas.
Learn about how these new-age ideas will impact on your business, including:
- Robo-advice platforms and how they work
- The growing impact of technology on funds management
- Digital trends in whole of life planning
- Insurance technology trends
- Acquiring and engaging with your clients using predictive analytics
- Artificial intelligence concepts and its application to financial services
- Digital currencies based on blockchain/distributed ledger concepts etc.
Click here to find out more and to register.
You now have the ability to duplicate an existing saved quote on Quotemonster by clicking the 'clone' button pictured below.
This will copy the entire existing quote into a new quote which then gives you the ability to quote different benefits, wait periods, etc without having to overwrite the existing quote.
Tip: It may pay to give your client a number after their name to allow you to differentiate between quotes for the same client.
Part eight in our series on building the best insurance report with the least wasted time covers financial details – and the importance of focusing on the high-level numbers. That's because one of the places more time than ever is wasted is on collecting financial information which is never used in the advice process. That’s a pretty controversial statement – so let’s look a little closer.
If you are not sure about how to find this page in the needs analysis process, it’s simple. At Quotemonster.co.nz hit the ‘get crunching’ button and put in basic information to enable you to do a quote, hit next. Then look at the top of the screen and find the ‘needs crunching’ button and click on that. You need to complete the scope and priorities page, complete objectives, and then click next and you are at financial details.
Our intention is to ensure we have done the job right without putting the client through hell. Many clients dread the need to produce a detailed personal budget that often comes with applying for financial products. It is nice if you can avoid that. With most personal insurance advice, you can.
Budget advisers in New Zealand, working with limited time and usually pro-bono, have come up with a very simple solution which we have adopted. They ask for income, and then they ask how much you save. The difference covers everything else – it’s all spent. That’s one way the simple needs analysis keeps things simple. If you need to look at discretionary spending as a separate item then you can (at your option) also do that in the needs crunching tool. But we do not need to know exactly how much is paid on the electricity bill versus the gas bill.
Similarly, with assets and liabilities we are focused on financial assets and so we encourage you not to include the value of the family home, or cars for personal use. Only include investment assets that can be readily consumed. There are exceptions to this general rule, which you may need to examine in more detail outside of this tool, but generally the aim will be to retain the family home – and if an insurable event occurs, pay it off and retain it for the use of the family – not liquidate it. That’s the basis on which this part of the analysis rests. Likewise, a joint balance sheet for two lives is presumed.
Later, when you come to look at specific issues, you will note that we collect after-tax debt repayments and these can be used as a sum-insured for mortgage protection insurance. KiwiSaver balances are retained because these can be accessed in the event of death or total and permanent disability. Note that you can enter information using the frequency that is more comfortable for your client – yearly, monthly, or fortnightly. We do not attempt to replicate table mortgage calculations, so you must take care to properly enter both the loan amount and the repayment amount.
When you are happy with all the financial details you are ready to click next and review the different needs analysis calculations available to you.
Those will be covered in the next part of this series.
Here is an article written by Jenee Tibshraeny on interest.co.nz about the differences in quality and coverage on underwritten versus non-underwritten life insurance.
Quality Product Research are working on a new info-graphic, which is all about the scoring methodology. This part of the new guide covers the use of external experts to help arrive at reasonable value-based weightings:
Here at Quotemonster we get assistance in reviewing contracts from a number of different sources:
Insurance companies and reinsurers: can all access the data on which we make our assessments and provide feedback.
Actuaries: help to inform our view around relative risks and incidence weightings for different items and sub-items.
Claims managers and underwriting managers: help us to get different perspectives on the actual use and value of different features.
Advisers: give us feedback on recent claims experience and how their clients are actually using the insurance policies we rate.
We also stay in touch with people at dispute resolution bodies, regulatory bodies, news organisations, academia, and consumer groups to get a wide range of views and input.
If you ever want more detail about the ratings for any item or insurance policy in our database please contact us directly and we can usually refer you to more detailed information on our blog, policy library (including hundreds of policies no longer on sale), and details from our database.
The four factor rating methodology, Quotemonster, and the ratings on this poster and on our site are all © Copyright Quality Product Research Limited.
AA has entered the health insurance market partnered with nib. AA will be providing three core products including:
- AA Health Everyday Cover
- AA Health Private Hospital Cover
- AA Health Private Hospital and Specialist Cover
Click here to read their press release: Download AA adds another layer of protection with health care_031016
nib NZ had a price increase of 1% on their Ultimate Health and Ultimate Health Max products effective 1 October. This new rates are live on Quotemonster and new Medical Comparison Database will be sent out to subscribers shortly.
OnePath have sent out the following media release in regards to a downgrade in their financial stability rating:
"We just wanted to let you know that we have been advised that Standard & Poor’s is downgrading the financial strength rating of a number of insurers, including OnePath Life (NZ) Limited (OPL).
In total, Standard & Poor’s has downgraded the ratings for eight insurers, all of them subsidiaries of major Australian banks. This means that OPL’s current rating of AA- will drop one notch to A+.
Your clients should not be concerned by this and it will not have any impact on our day-to-day operations. It’s important to note that Standard & Poor’s clearly states that its move does not indicate any weakening of the stand-alone ratings of these insurers. Standard & Poor’s is responding to the recent sale of insurance businesses by some Australian banks in the past year, as well as increasing regulatory requirements on capital.
We are in the process of updating application forms, quote and collateral that contains reference to the financial strength rating. We will advise when this updated material is available. In the meantime, we ask that you let any clients in the process of signing up for cover that OnePath’s financial strength rating has changed."