AM Best reaffirms Partners Life ratings

AM Best has reaffirmed the financial strength rating of A (Excellent) and the long-term issuer credit rating of “a” (Excellent) for Partners Life Limited, with the outlook for both remaining stable. AM Best categorises Partners Life’s balance sheet position as very strong.

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Menopause in the news

Menopause, where oestrogen levels drop and menstruation stops, has been in the news a lot recently. While people are starting to talk about it more, there is still a lack of understanding and even misdiagnosis of symptoms. One survey found a third of respondents waited at least three years for their menopausal symptoms to be correctly diagnosed, and a further 18 per cent visited their doctor six times before they received the help they needed.

While hot flushes may be the symptom most people first think of, brain fog has been found to be more common. Other symptoms can include night sweats, mood swings, joint pain, low energy, memory problems, sleep problems, low mood, low libido, irritability, nervousness, headaches and more.

Dr Lisa Mosconi says “Menopause changes the brain’s structure, functionality, and even its connectivity in fairly unique ways.” Dr Louise Newson even suggests it should be reframed as a neurological condition instead of a gynaecological one.

So what can be done to help improve menopausal symptoms? Eat a mediterranean-style diet filled with whole foods, avoid alcohol, get regular physical exercise, challenge your brain (puzzles, learning a new language or playing a musical instrument are all good), get quality sleep, try stress management techniques such as yoga and mindfulness, discuss hormonal and non-hormonal options with your doctor.

Some workplaces have started to hold workshops to encourage dialogue about menopause, or implement menopause policies. AIA NZ has produced a Menopause toolkit, to help employees understand and support people going through menopause.

More information can be found at The Australasian Menopause Society website.

Antimicrobial resistance poses major global health threat

The World Health Organisation (WHO) categorises antimicrobial resistance (AMR) as one of the top global public health threats. Antimicrobials (that is antibiotics, antivirals, antifungals and antiparasitics) being overprescribed and misused is contributing to the development of drug-resistant pathogens. AMR happens over time as pathogens (including bacteria, viruses, fungi and parasites) mutate – those resistant to the antimicrobials they were previously susceptible to survive, multiply and spread. The more microbes are exposed to pharmaceuticals, the more likely they are to adapt and develop resistance. This happens in all areas and at all income levels and has global ramifications. Infections become harder to treat, surgeries become riskier and more people die. Modern medicines that were once able to quickly and effectively treat a raft of ailments from tuberculosis to urinary tract infections become progressively more ineffective. In 2019, AMR was estimated to be directly responsible for 1.27 million deaths and a contributing factor in 4.95 million deaths.

Paul Murray, CEO Life & Health Reinsurance at Swiss Re, has written about this ‘silent pandemic’. He calls out the overprescription of antibiotics during the other pandemic, with a reported 75% of patients hospitalised for Covid-19 being treated with antibiotics despite only 8% having bacterial co-infections. He highlights that the impacts are unequally distributed, with those in more vulnerable regions being disproportionally affected, with death rates in sub-Saharan Africa double those of developed countries. Climate change and its accompanying extreme weather, climate-driven migration and warfare are all  vectors expected to intensify exposure to drug-resistant pathogens.

In addition to health impacts, AMR is increasingly causing significant financial impacts. In the US, the Centers for Disease Control and Prevention (CDC), has calculated antibiotic resistance can add as much as $1,400 to hospital bills for patients with bacterial infections. When standard treatments regiments for infections don’t work any longer, complex, often costly, treatment regimens need to be explored. Last resort antibiotics tend to be particularly expensive.

If you want to read more, Swiss Re has published ‘Antimicrobial resistance: a silent threat to our future’, available here.

Asteron Life paid out 97% of claims

Asteron Life paid out 97% of the Trauma, Life and Income Protection claims it received in the year ended June 30 2024. In total, Asteron Life paid out $112 million of claims, with $53.5 million being paid out for Life Insurance, $34.1 million in Trauma policy payments and $24.4 million in Monthly Income Protection cover claims.

Accident or Injury was the leading cause of claims, for both Monthly Income cover and Trauma cover. Mental Health claims duration remains high, with an average duration of 8 - 12 months, compared to other new claims where the average duration was around 6 - 8 months. Executive Manager Claims and Customer Solutions, Seema Bangera, said

“Return to work outcomes are directly related to early intervention and rehabilitation. This means the mental wellbeing of customers needs to be at the forefront for claims specialists and we need to ensure all clients have the necessary support building their personal resilience for their return-to-work journeys.”

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The FMA releases Consumer Confidence survey

The Financial Markets Authority (FMA) has released their inaugural Consumer Confidence Survey. The survey combines key questions from previous years’ Investor Confidence Survey and KiwiSaver Statements Survey as well as new questions around key focus areas such as fairness, investment scams and confidence in financial markets. Key findings include:

• 98% of New Zealanders have at least one banking product, with 49% considering at least one banking product in the next 12 months

• Savings account ownership is up across all demographics  

• Credit card ownership has decreased 3% while buy-now-pay-later services are up 5% across all demographics

• 86% of New Zealanders have at least one insurance product, with the average number of insurance products being 2.5 per person

• Younger New Zealanders (18 – 34) generally had fewer insurance products compared to other age groups but were more likely to own pet and health insurance

• 85% of New Zealanders have at least one investment product, with the average number of different investment products owned being 1.8 per person

• KiwiSaver membership is highest amongst Chinese and Pacific ethnicities at 87% and 86% respectively

• 79% of New Zealanders actively chose their own KiwiSaver fund, with females and those aged 45 – 54 years having lower levels of participation in their choice of fund

• KiwiSaver satisfaction levels have improved over the last two years, with 60% of Kiwis being quite/very satisfied

• Catalysts for kiwis to consider making changes to their KiwiSaver/other investments include better investment returns from another provider (41%) or if their fees seemed high (39%).

FMA Chief Executive Samantha Barrass said

“The results of this survey provide us with valuable insights into how New Zealanders interact with financial markets and their level of confidence in those markets and in the FMA. It also helps us to see emerging trends that require our regulatory attention, so that we can focus our efforts on how we can better regulate for all New Zealanders.”

Additional reports will be published in early 2025 on several themes that emerged in the survey findings in 2025, including the experiences of women Māori, and other minority groups with financial markets; the relationship between knowledge of financial markets and confidence; investment scams and their link to confidence and consumer behaviour; the enablers of investment practices; comparative findings on fairness.

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Fidelity Life open applications for training programmes

Fidelity Life has opened applications for Advice Masters, Professional Pathways, Practice Manager Masterclass and Career Connect.

Applications are open for Advice Masters, Fidelity Life's intensive training and personalised professional development programme designed for experienced business owners in the financial services industry. The programme encompasses a wide range of topics: M&A; capital raising/funding strategies; high performance for business leaders; leading high performing teams; business strategy design and execution; governance; board craft; director skills and sustainability; business efficiency; technology and AI. The 30 available spots are by invitation only – interested people can talk to their business manager or apply here.

Professional Pathways is Fidelity Life's customisable extended training and development programme designed for motivated advisers, who are dedicated to growth and achieving their business goals. Over a 9-month period the programme will take participants through key topics – developing their business; advice and planning; business sales and growth; business efficiency. The programme consists of skills based workshops, self-paced learning through courses, resources and quizzes, online webinars and interactive online workshops.

Practice Manager Masterclass are targeted at admin staff and will help to improve workflow and productivity.

Career Connect is Fidelity Life's comprehensive education and skills programme designed to develop the next generation of financial advisers. Career Connect equips participants with relevant qualifications, practical skills and knowledge, and industry connections. The 2025 intake will commence in May and will run for 6 months. Applicants will be invited for an interview and the fee for the programme is approximately $1650.

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Financial Advice NZ webinar 'Shaping the future of financial advice' 11 December

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Southern Cross creates new role to oversee hospital network

Southern Cross Healthcare has announced Roger Cronin as the new chief operating officer responsible for the organisation’s 10 wholly owned hospitals. The new role’s focus is on overseeing the operational performance of the hospitals and acting as a strategic link between the hospitals and the national support office.

Cronin was recently CEO of PresMed Australia, a private healthcare provider specialising in surgical day-stay procedures for ophthalmology and ENT patients. Cronin has held a variety of leadership roles in major public hospitals and has worked with the New South Wales Ministry of Health. Cronin will commence his new role in late November.

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Westpac campaign highlights dangers of impulse buying and debt accumulation

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Steve Wright talks about reducing advice risk

Steve Wright tackled the question of reducing advice risk recently. He asserts that in light of the largely untested ‘principles-based’ requirements FAPs and advisers must stick to, he’s not surprised that some advisers are experiencing stress. Steve sets outs a range of steps advisers could take for reducing advice risk. A good read if this is something you want to tackle.

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Fidelity Life wins Security Team of the Year at the 2024 iSANZ Awards

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Financial Advice NZ webinar 'Economic Insights: Perspectives from leading experts' 28 November

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Tiffany Koh awarded the 2024 Chubb Life Actuarial Scholarship

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Partners Life release claims statistics

Some interesting statistics have been released by Partners Life around claims. Since Partners Life launched in 2011:

• Partners Life have paid out more than 70,000 claims worth more than $1.25 billion.

• Their biggest monthly disability claim paid was for $1,617,691

• The longest running claim paid for monthly disability cover was 4,068 days and the average claim length was 293 days

• Partners Life paid 13,379 monthly disability cover claims totalling $225,954,755

• Their biggest life cover claim paid was for $2,964,706

• Partners Life paid 1422 life cover claims totalling $334,281,111

• Partners Life paid 51,827 private medical cover claims totalling $353,468,683

• Their biggest private medical cover claim paid was for $982,800

• Partners Life paid 3,948 trauma cover claims totalling $357,357,574

• Their biggest trauma cover claim paid was for $3,218,899

For the year ended 31 March 2024, Partners Life

• paid 93% of claims

• paid $51,020,381 of monthly disability cover claims cost across 3,332 claims paid

• paid $61,130,350 of life cover claims across 208 claims paid

• paid $71,705,905 of private medical cover claims across 12,891 claims paid

• paid $66,106,600 of trauma cover claims across 655 claims paid

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Southern Cross covers cochlear implants

Southern Cross Health Insurance (SCHI) has become the first New Zealand insurer to cover cochlear implant surgery for eligible adult members. SCHI will cover one internal cochlear implant (excluding the external sound processor) for members who meet specific criteria which include:

·         being at least 18 years old

·         having severe to profound sensorineural hearing loss in one ear

·         having moderate or worse hearing loss in the other ear

·         having a hearing aid fitted for the ear scheduled for the implant

Those an audiologist deems likely to develop this level of hearing loss within 24 months may also qualify.

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FSC webinar 'Connecting with Kiwis: Strategies for reaching New Zealand's diverse consumer groups' 28 November

mySolutions webinar 'Premium structures' 30 October

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The Co-operative Bank is a finalist in the 2024 LearnX Awards

AMP webinar 'Financially Independent Kids: Plan Today, Protect Tomorrow with Hannah McQueen' 24 October 12:30pm