Chatswood serves the life and health insurance sector in New Zealand with market intelligence, data, and bespoke consulting services. Some of these are provided in conjunction with Quality Product Research Limited - a subsidiary that brings you Quotemonster.
We believe that good decisions are more likely to occur when we have good information about the market environment in which we operate. Intuitive leaps and creative decisions are always required, of course, but the more they are based on a firm foundation of observation, the better they tend to be.
Munich Re assess the potential of anti-obesity medications to reverse upwards obesity trends and improve health outcomes
With obesity expected to continue to trend upwards worldwide, Munich Re’s Life Science Report 2025 looks the impact of anti-obesity medications on mortality and morbidity.
Munich Re’s Life Science Report 2025 looks at obesity and the impact of anti-obesity medications on mortality and morbidity. Obesity is expected to continue to trend upward worldwide, with projections that more than half of the global population will be overweight or obese by 2035. Obesity is associated with a range of adverse health risks, and corresponding higher mortality and morbidity.
In the past decade, a range of injectable glucagon-like peptide-1 (GLP-1) receptor agonists drugs (such as Ozempic or Wegovy), initially approved for type 2 diabetes mellitus management, have been shown to be effective in weight loss and approved for use to manage obesity. Given their popularity (and profitability), many more medications in this class are being researched and aim to be bought to market, including an oral version and a longer-acting monthly injectable. If these weight-loss drugs can stop or reverse increasing obesity rates, the ramifications to mortality and morbidity could be huge, with corresponding impacts on life, disability and critical illness insurance products.
Medical literature continues to highlight added benefits the new generation of weight loss drugs may have on many other medical conditions, from cardiovascular disease to obstructive sleep apnoea and certain neurological diseases.
Key to weight loss effectiveness is anti-obesity medications being taken in conjunction with lifestyle counselling about nutrition and exercise. Products like AIA’s Vitality programme could be key to help steer users of these medications towards better health outcomes.
Munich Re analyse a hypothetical US scenario to quantify the potential impact these medications could have on insurance portfolios. They make several assumptions, and choose a long-term horizon. Their final projection is a 21% mortality reduction for non-severely obese individuals, and a 40% morality reduction for severely obese individuals over the next 10 – 20 years. Munich Re highlight that insurers need dedicated, knowledgeable medical teams to address these findings with regards to potential insurance impacts.
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Munich Re look at how insurers can develop prevention strategies
Prevention is all about intervening before a disease or condition occurs – trying to extend the health span of peoples’ lives and prevent claims from arising in the first place. Munich Re’s Life Science Report looks at prevention strategies insurers can implement.
Munich Re’s Life Science Report 2025 has insights on global trends and risks that will shape the insurance industry over the next decade. We’ve written about their in-depth looks at AI in Healthcare and Improving Cancer Outcomes sections, and now we’re looking at their Prevention chapter.
Prevention is all about intervening before a disease or condition occurs – trying to extend the health span of peoples’ lives and prevent claims from arising in the first place.
In order to develop effective preventative strategies, insurers need a deep understanding of each of their clients’ unique characteristics, risk factors and health trends. Insurers should focus on areas where they’ll get the most bang for their buck, addressing lifestyle factors that contribute to the most significant preventable health risks and claims drivers – namely cardiovascular disease, cancer and mental health conditions. The key preventable causes for these are obesity, unhealthy diet, physical inactivity, smoking, excessive drinking and poor sleep patterns. Munich Re have a range of tables showing the impact of preventive measures on mortality, disability, critical illness and health care costs.
Munich Re categorise preventative health measures based on the stages of disease they are intended to prevent:
Primordial prevention - preventing development of risk factors for the entire population
Primary prevention - prevent onset of disease e.g. through lifestyle adjustments and medications
Secondary prevention - early diagnosis (e.g. through screening programmes) and prompt treatment
Tertiary prevention - manage existing disease to minimise complications and improve outcomes to prevent further morbidity and mortality
Quaternary prevention - protect from medical interventions that are likely to cause more harm than good.
To be effective, targeted interventions need to address an individual’s unique needs. By using personalised risk profiling, digital risk scores and advanced analytics, insurers can tailor interventions to maximise impact. To be efficient, insurers need to be able to amplify their prevention efforts to reach a wide audience and use digital systems to automate processes and incorporate real-time feedback. One of the most effective means of prevention is improving health literacy, the ability to navigate health information and make informed decisions. Munich Re suggest that informing policyholders about prevention benefits, enhancing health literacy, making things easy and incentivising members will all help drive positive health outcomes.
As we’ve already seen starting to occur here in NZ, insurers are positioning themselves as active participants in the well-being of their policyholders (with AIA’s Vitality programme perhaps the most notable example of this). We’d love to hear from you instances where your clients health insurance has led to them taking proactive steps to improve their health.
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AIA release Claims Compass Report
AIA have released their second Claims Compass Report, covering data for the year ended 31 December 2024.
AIA have released their second Claims Compass Report, covering data for the year ended 31 December 2024. AIA have over 797,000 Kiwi protected and accept 92% of all claims received.
In 2024, AIA paid out $829.6 million in claims, up $95 million on the previous year. Life accounted for 41% of all claims paid ($298.1 million), followed by Health ($167 million), Trauma ($139.5 million), Income Protection ($97.2 million) and Total Permanent Disablement ($23.9 million).
Life claims were up $34.6 million, Health claims were up $23.9 million and Trauma claims were up $22.4 million on the previous year. Increases in claims were put down to the combined impact of insurance levels increasing alongside inflation, more innovative treatment options with higher costs than established treatments, and growing demand for health services due to an aging population and growth in chronic diseases.
AIA NZ Chief Customer Officer, Maddie Sherlock said
“In New Zealand, we have observed increased rates of heart disease, cancer, diabetes, and poor mental health, brought about by worsening lifestyle factors such as diet and lack of exercise. These worsening public health trends lead to a higher demand for health services, which puts upward pressure on private health claims.”
AIA have shone a spotlight on mental health. In 2024 $25.7 million was paid out towards mental health related claims, and $8.1 million for suicide claims. Mental health claims were highest for men aged 40 and 49 ($6.4 million), followed by men aged 50 – 59 (5.6 million). Sherlock said
“This big jump in claims for this age group reflects their life stage which is likely to be impacted by the weight of increased family, financial and professional responsibility and high demands upon their time.”
“This is the age where your overall health starts to be impacted by your nutrition, sleep and activity levels versus when you were younger. And your risk of lifestyle diseases increases. These changes can of course impact your confidence and overall mental wellbeing.”
The top AIA NZ mental health claims in 2024 were:
Depressive disorders 44%
Anxiety / panic disorders 14%
Post Traumatic Stress Disorder 4%
Chronic Fatigue Syndrome 3%
Chronic Pain Syndrome 2%
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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.
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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Legal experts discuss Select Committee’s endorsement of the Contracts of Insurance Bill
Emma Moran and Rachel Taylor from DLA Piper have commentated on the changes the Select Committee endorsed to the Contracts of Insurance Bill.
“The Committee’s [Finance and Expenditure Committee’s] report on the Bill is good news for brokers because it recognises the often complex role that brokers play.”
Moran highlights that the report on the bill recognises that brokers can have tricky competing duties to their clients and insurers; that it upholds liability caps agreed between insurers and brokers; and allows insurers and brokers to retain existing agreed periods for payment of premiums.
Dentons also has a review of the Contracts of Insurance Bill.
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Winners at the 2024 FSC Awards announced
Congratulations to all the winners, finalists and nominees at the 2024 Financial Services Council (FSC) Awards.
Congratulations to all the winners, finalists and nominees at the 2024 Financial Services Council (FSC) Awards. We’re lucky to work in an industry with so many dedicated, innovative people who have a passion for what they do; the awards recognise some of the best and brightest among us.
FSC Acting CEO Haydee Stroud said
“…it was a privilege to be able to see such a diverse range and high calibre of merit. Entrants contributions to the financial services sector and to the wider New Zealand community have all played a part in growing the financial confidence and wellbeing of all New Zealanders.”
Contribution to Community Award – Toi Ora - nib and Ngāti Whātua Ōrākei
Emerging Trailblazer Award – Leigh Bennett, Fidelity Life
Excellence in Governance Award – The Compliance Company
Workplace Savings Award – Bruce Kerr, Professional Trustee
Excellence in Sustainability Practices Award – AIA New Zealand
Excellence in Wellbeing & Inclusion Award – Southern Cross Health Insurance
Team of the Year Award – Operations Team, Sharesies
Chair’s Award for Services to the Industry – Ana-Marie Lockyer: Chief Executive Officer, Pie Funds
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Plastics are contaminating our bodies
Microplastics, tiny pieces of plastic less than 5mm, and nanoplastics, small enough to cross membranes between cells, are increasingly infiltrating our bodies. Whether it’s tiny particles of your plastic water bottle shedding and being drunk or microbeads used in cosmetics such as body exfoliants making their way inside you, odds are you’re contaminated.
Microplastics are everywhere, having been found everywhere from the deepest parts of the ocean to the Arctic and in everything from shellfish to beer. Now research has found that microplastics and nanoplastics are now contaminating fruits and vegetables as they grow.
Microplastics, tiny pieces of plastic less than 5mm, and nanoplastics, small enough to cross membranes between cells, are increasingly infiltrating our bodies. Whether it’s tiny particles of your plastic water bottle shedding and being drunk or microbeads used in cosmetics such as body exfoliants making their way inside you (thankfully banned in NZ since 2018), or even just breathing them in, odds are you’re contaminated.
Scientists have found microplastics in human blood in almost 80% of people they tested. Microplastics have been found in human tissues, including the lungs. Microplastics have been found in the faeces of babies and adults, with one study showing babies fed from plastic bottles are swallowing millions of microplastic particles a day and have higher microplastic concentrations in their stool than adults. Research has found microplastics present in both the maternal and foetal sides of the placenta and the particles were small enough to be carried in the bloodstream.
The impact on health is not yet known, but concerning findings from other studies show microplastics can damage human cells. Studies on mice have found that lab exposure to microplastics can disrupt the gut microbiome, lead to inflammation, lower sperm quality and testosterone levels, and negatively affect learning and memory.
Plastics contain a range of dangerous pollutants, including polychlorinated biphenyls (PCB’s) – manmade chemicals that have been shown to cause cancer in animals. Some chemicals in plastics like Bisphenol A (BPA) and phthalates have been found to disrupt the endocrine system and the hormones that regulate human growth and development.
Toxic Per- and polyfluoroalkyl substances (PFAS), or ‘forever chemicals’ as they’re sometimes dubbed, have been found in many of the world’s plastic containers and bottles, raising concerns they’re leaking into foods, drinks, personal care products, pharmaceuticals, cleaning products and more. Why are they considered ‘forever chemicals’? Because they do not naturally break down, can accumulate in humans and have been linked to cancer, birth defects, liver disease, thyroid disease, falling sperm counts, kidney disease, decreased immunity and other serious health problems.
PFAS levels in water that was left in a fluorinated container for a year measured at a startling 188,000 parts per trillion (ppt). For context, some states allow as little as 5ppt in drinking water, while public health advocates say anything above 1ppt is dangerous.
Some tips for reducing your exposure to microplastics include: wearing clothes made of natural fibres such as cotton and linen; reducing your use of single-use plastics (think things like buying a reusable water bottle, using tea leaves instead of tea bags, choosing products packaged in glass or cardboard over those in plastic); avoid microwaving your food in plastic – even when it says “microwave safe”; regularly dust and vacuum.
WHO warns loneliness is a pressing global health threat
The World Health Organisation (WHO) has proclaimed that loneliness is a pressing global health threat. The WHO has launched a three-year commission that will attempt to shape global policy by analysing high-risk areas of social isolation and encouraging government to foster new mental health solutions.
The World Health Organisation (WHO) has proclaimed that loneliness is a pressing global health threat. The WHO has launched a three-year commission that will attempt to shape global policy by analysing high-risk areas of social isolation and encouraging government to foster new mental health solutions.
Research shows that social isolation and loneliness can have serious impacts on older people’s physical and mental health, quality of life and longevity. Lonely and socially isolated elderly people are at higher risk of cardiovascular disease, stroke, diabetes, cognitive decline, dementia, depression, anxiety and suicide. Loneliness can have comparable effects on mortality as other risk factors such as smoking, obesity and physical inactivity, with a 2015 meta-analysis found that people with chronic loneliness had a 26% increased risk of mortality. While more often experienced by people of an older age, young people are at risk too, with an estimated 5% to 15% of adolescents experiencing loneliness.
The issues presented by loneliness and social isolation are getting more recognition by those in leadership, with the United Kingdom appointing a ‘loneliness minister’ in 2018 and Japan following suit in 2021.
The WHO suggest a range of individual, community-level and societal-level strategies and interventions that can help reduce social isolation and loneliness. Suggestions range from social skills training and social activity groups at the individual level to improving infrastructure such as transport to creating laws and policies that address social cohesion and socio-economic inequality.
If you’re experiencing loneliness there are a range of organisations that can offer you help.
Wotton + Kearney release 2023 NZ Insurance Market Trends Update
Wotton + Kearney have released their 2023 NZ Insurance Market Trends Update. Of note, it includes updates on:
· increase in director accountability for ESG issues and climate-related financial disclosures;
· how organisations will need to consider how applicable tikanga values should inform their conduct when dealing with employment relationship issues;
· how organisations need rigorous processes in place for restructures and redundancies;
· extensions to Schedule 2 Occupational Diseases;
· changes to the regulation of medicines, medical devices and natural health products;
· the passing of the Therapeutic Products Bill 2023;
· cyber, privacy and data security.
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Ultra-Processed Foods and their negative impact on health
Ultra-processed foods (UPFs) are getting a (deservedly) bad rap. Often high in fats, sugar and/or salt, they are energy-dense and nutrient-poor. They have generally undergone intense processes (like high-temperature extrusion or hydrogenation) and usually contain food additives and/or industrial ingredients like colours, artificial flavours, emulsifiers and preservatives. If you don’t recognise some of the ingredients on the label as food, then it’s likely to be an UPF. They are manufactured to be cheap, convenient and have a long shelf life.
They’re ubiquitous in our food chains. Walk the aisles of your local supermarket and so much of what is on the shelves can be considered a UPF. They can be foods mistakenly considered healthy (flavoured yoghurts, cereals) to products we all know aren’t good for us (here’s looking at you, fizzy drinks and frozen pizza). Some estimates have found more than half our diet is now composed of UPFs.
During a cost of living crisis, UPFs can often be a cheap, quick way of filling bellies – not everyone can afford to avoid them or has the time to cook meals from scratch every day.
So why should we limit our intake of UPFs?
In a 2020 review of 43 studies on UPF consumption and health outcomes, 37 studies found at least one adverse health outcome. There’s increasing evidence linking UPF intake and chronic conditions, in particular obesity, but also cancer and depressive symptoms. Studies have found that people who consume more UPFs have higher risks of cardiovascular disease, coronary heart disease, and cerebrovascular disease. Studies following large groups have worrying conclusions
2019 BMJ study of more than 105,000 people followed for five years found that for every 10% increase in the amount of ultra-processed foods participants ate, their risk of heart attack or stroke went up by 12%. And another 2019 BMJ study, this one involving almost 20,000 people followed for 10 years on average, found that participants who ate more than four servings of ultra-processed foods per day had a 62% higher risk of dying during the study (from any cause) compared with those who ate two servings per day.
There’s evidence that UPFs are very addictive. They’re engineered to be hyper-palatable so you want to eat more of them. Vast amounts of money are spent by food manufacturers, fine-tuning formulations to find the best taste. Research has found some UPFs can elicit cravings, loss of control and an inability to cut back. There’s also increasing evidence that a diet high in UPFs leads to increased energy intake and weight gain.
Even the packaging can be a concern, with one study finding higher consumers of UPF had higher urinary concentrations of phthalates and bisphenols that may have migrated from the food packaging.
With UPFs being compared to other public health crises like tobacco and opioids, some groups are calling for public health interventions that go beyond education, saying that UPFs meet the criteria requiring regulation – abuse, toxicity, ubiquity and externalities (how does your consumption affect me?).
My pick is we’re going to start seeing more backlash against UPFs as more research showing how bad they are for us comes out.
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