Breaking News: Insurance/Investments/Home Loans

1. Insurance Council rejects criticism over Kaikoura Earthquake claims. - Radio NZ

The Insurance Council is defending the industry against claims that some commercial claims are taking too long in Kaikoura following the latest devastating earthquakes.

2. Wedding Insurance now available to Kiwis at home or abroad. - Stuff.co.nz

New Zealand's first specific insurance designed to cover wedding festivities has been launched, and it also covers Kiwis choosing to have their big day overseas.

3. Kaikoura Earthquakes the seventh most costly event covered by insurers in 2016. - Interest.co.nz

The total amount of damage caused by the quakes is estimated at $4.5 billion NZD, of which 60% is expected to be covered by some form of insurance.

4. Why rich Americans see NZ as a haven. - NZ Herald

A new wave of wealthy Americans sees NZ as an attractive option, isolated enough from the perceived and real turmoils of their home nation and offering a more positive environment and lifestyle. 

5. Auckland falls to world's fourth least livable city. - NZ Herald

Citing moderate pay and ever increasing cost of living and house prices, Auckland is now ranked behind only Hong Kong, Sydney and Vancouver among world cities.

6. New Zealand Home Loans Survey reveals household's most disastrous spending habits. - Stuff.co.nz

Particular habits of overspending are contributing to a major impact on households ability to service their home loan debt.

7. Double Interest rate blow to Kiwibank mortgage holders. - NZ Herald

Kiwiblank cites funding costs as the reason behind increasing mortgage rates twice already in the first month of 2017.

www.sprattfinancial.co.nz

Spratt Financial Newsletter - October 2016

Check out our newest Spratt Financial Newsletter, including special events clauses in your insurance which may make changes to your insurance far easier and how to be debt free quicker.

Insurance News Round Up

1. Quirky contents insurance claims highlighted to encourage customers. - Insurance Business Online

"Some customers don't make a claim because they don't realise their more unusual items are covered under their contents insurance" - AA Insurance gives a reminder to potential customers that they may be underestimating the value of their contents insurance and what is truly covered.

2. Where to find the best travel insurance. - Stuff.co.nz

Southern Cross Travel insurance, 1Cover and Worldcare have been named the travel insurance providers who best provides "outstanding value".

3. New Zealanders lack insurance for their most important asset. - Stuff.co.nz

Whilst 95% of Kiwis have cover for their homes, cars or possessions, only a mere 30 percent of New Zealanders are covered by health insurance and only 57% have life cover.

4. Southern Cross Travel Insurance reveals the extent of fake claims. - Voxy.co.nz

SCTI have revealed the regular extent of fraudulent travel insurance claims they receive, estimating upwards of 1500 cases a year may be fake claims.

5. Sovereign targets underinsured millenials in latest insurance campaign. - Good Returns

New digital led campaign aims to combat excuses, empowering young Kiwis to stand up and take charge of their financial wellbeing.

www.sprattfinancial.co.nz

NIB Medical Acquires Onepath Medical Business

Late last year, NIB Medical purchased the entirety of Onepath's medical insurance business for $25 million. Onepath will continue selling life and disability insurance unchanged.

Since NIB arrived in New Zealand after expanding from Australia, it has grown into a substantial presence in the medical insurance marketplace. Originally buying Tower's Medical policies, this further expansion solidifies them further as top players in the NZ insurance market. This development will mean that NIB services 200,000 NZ clients, or around 15% of those with health insurance in the country.

For clients with existing Onepath policies, these policies will be transferred to NIB around the middle of the year. They will then be responsible for your claims and changes to your medical policy. Your premiums and the structure of your policy will remain the same. Notifications from both Onepath and NIB will be sent out to you before then. If you have any questions about the transition, you can contact us anytime and we'll be happy to help.

Financial News Round-up - New Years 2016

1. 5 health insurance resolutions to consider in 2016. - NZ Herald

Some great things to consider with regards to your health insurance in 2016 including considering deadlines, when to make changes, and how to get familiar with your coverage.

2. UK Insurers reject almost 50% of mobile phone claims. - Insurance Business Online

As mobile phone insurance becomes more and more of a necessity, UK insurers have been doing the industry and their clients a disservice by finding means to reject claims, including not having certain apps installed and not having SIM cards inside.

3. NZ's largest general insurer introduces a new CEO. - Interest.co.nz

Craig Olsen has taken over the top job at IAG as part of a new leadership team announced just before the New Year. He is taking over from former CEO Jacki Johnson.

4. Daily mortgage rates from the major suppliers. - Interest.co.nz

Handy tool to keep track of mortgage rates from the major lending suppliers in NZ.

5. To cash up, or to keep your money in Kiwisaver? - NZ Herald

A good article featuring tips on what to do with your money in your Kiwisaver and how to make the most of it. Also, keep in mind Spratt Financial's free Kiwisaver consultation service to help make sure your Kiwisaver is performing the best that it can.

6. New website educating the public about personal insurance products set to launch. - Good Returns

Life-Info.org.nz currently preparing for launch in the New Year aims to add to the financial literacy of the NZ public as it relates to the crucial matter of personal insurance.

7. New Year's resolution: Financial fitness tips for retirees. - NZ Herald

Older people were recently found to be less likely to set financial goals than younger people. Experts in the field have put together their best tips for older people to become financially fit and secure.

Visit the official website of Spratt Financial Services here.

Finance News Round Up

1. How to become a financial superman. - NZ Herald

Some simple tips on how to improve your finances, including keeping a monthly spending diary, properly organising your bank accounts for financial efficiency and taking an honest look at your mortgage and how it can be improved.

2. Insurance Actuaries use forecasts to predict All Blacks World Cup win. - Insurance Business Online

Forecasting tools originally used for insurance are forecasting a 44.3% chance of the All Blacks winning the Rugby World Cup.

3. Hundreds of Rugby World Cup Insurance claims expected. - NZ Herald

Travel insurance company is gearing up to receive hundreds of travel insurance claims from Kiwis travelling in the UK for the World Cup. One insurance company estimated the cost at being flown back to NZ by air ambulance in case of a severe emergency to be verging on $100,000.

4. Southern Cross: Action is needed to keep insurance affordable for retirees. - Good Returns

Southern Cross has registered a $5.8 million surplus, recovering from a $1.1 million deficit last financial year. They have also come out in favour of a 25% rebate for members over 65.

5. Insurer launches new marine liability product. - Insurance Business Online 

This new product will simplify things for marina operators and ship builders/repairers by no longer forcing these businesses to buy two standalone liability policies.

6. NZ Dollar hanging in there despite doom forecasts. - Interest.co.nz

Roger J Kerr states that the NZ dollar is showing many traits of the conquering All Blacks rugby team by hanging in there against the USD despite numerous forecasts to the contrary.

Financial News (July 2015)

1. Dunedin flood insurance bill found to be $28 million. - Radio NZ News

When South Dunedin experienced 3 months worth of rain in a single day, the damage was extensive. There were 2,000 domestic claims and 170 claims for damaged vehicles with claims totalling $28 million.

2. Westpac loosens apartment lending rules. - Good Returns

Changes have been made to make things easier for borrowers and first home buyers, by increasing the LVR maximum from 80% to 85% with certain conditions and limitations.

3. Options discussed to improve Kiwisaver. - Good Returns

Options are being discussed at a workshop on IRD's annual kiwisaver day on August 10th. Many proposed initiatives include better education for the general public about the key positive features of kiwisaver  as well as ensuring savers are in the most beneficial choice of fund.

4. Advice: Being vigilant about financial abuse. - Fisher Funds (NZ Herald)

Financial abuse can happen, from both untrustworthy advisers and fund managers as well as from members of one's own family. People are urged to be vigilant about who they trust with their money and look out for members of their own family when they make big financial decisions.

5. Expert: Financial skills among the general public prove to be poor. - NZ Herald

Whilst most people are good at looking after their money on a daily basis, they tend to make poor decisions for their future, according to a financial advice expert.

6. Kiwis see economic issues as the biggest problem for NZ. - Scoop.co.nz

44% of surveyed New Zealanders declared economic issues as the biggest problem facing the country. A growing 14% of Kiwis also view the housing shortage as the greatest concern (up 4% from March 2015 figures).

7. Auckland housing market 'continues to go mad' - NZ Herald

In the wake of Labour's controversial release of housing data highlighting the possible impact of foreign investors, Auckland's property market continues to increase 10 times faster than the remainder of the country according to the most recently released data.

For Insurance, Investment and Lending Service visit our official website here.

Breaking News (June 2015)

1. Do you have a plan for who will manage your money if you can't? - NZ Herald

If a family member suffers a severe illness or accident and can't continue to manage their affairs, you don't want legal wrangling and financial stress added to your burdens. It's always best to make sure you have a written plan and/or legal will in place so that you and your dependants will be okay if the worst happens.

2. AIA announces profit growth. - Good Returns

One of New Zealand's premier insurers has announced an underlying growth of 21% in profits for the year for the 12 months to November 30th 2014.

3. Self-driving cars: Insurers sceptical about impact on business. - Insurance Business Online

84% of business executives surveyed in the US did not expect the self-driving car to impact business until 2025 but are they ignoring the speed of a revolution? Industry insiders saying Self-driving vehicles could completely revamp the structure of Vehicle Insurance worldwide.

4. Humor: Insurance Fraudster tries to cash in a claim on a fake dead cat. - Insurance Business Online.

An American man has demanded an escalating amount in successive claim requests for emotional damage inflicted by the death of his cat in a car accident. The problem: There is no such cat and the pictures he supplied were of two different cats from Google.

5. Average Auckland house price up $100,000 in a year, but available listings down. - Interest.co.nz

Auckland housing boom continues as New Zealand's largest real estate agency sold a record number of houses in May, showing no sign of the usual winter downturn.

6. Flooding: Insurance claims reach towards $10 million. - Stuff.co.nz

Insurers have received close to 2,000 claims after severe flooding in the lower North Island over the weekend of the 20th June.

7. Annual health insurance payouts rise by $38 million. - NZ Herald

Following on from a previous story posted on the blog, the annual health insurance payout figure has been revised upward yet more. This is the first time since the statistics have been kept that $1 billion has been paid out in claims nationwide.

8. Cold snap hits New Zealand: Could we see record low temperatures? - NZ Herald

Ice and snow covers South Island roads and last week, Queenstown airport was forced to cancel a day's worth of flights. The record low tempearture recorded in New Zealand of a shocking -25 degrees may be under threat if the cold continues. Drivers are urged to stay safe on the road and to keep alert and warm.

Visit our official website at www.sprattfinancial.co.nz.

Breaking News (May 2015)

1. Tower Insurance makes a game out of safe driving. - Stuff.co.nz

With their new smartphone app, families finally have a way to settle all those arguments about who among them is the better/safer driver. Good feedback and points are accumulated for safe braking, smooth acceleration, good cornering and driving at safe speeds under the speed limit. Once every journey is complete, the app gives your score as well as feedback on how to improve next time. This has led 74% of drivers to improve their scores over time.

2. NIB launches new travel insurance. - Scoop.co.nz

NIB is partnering with global travel insurance provider World Nomad Group to offer travel insurance to Kiwis along with their current health and medical insurance business. This marks NIB's continued expansion in the NZ marketplace after purchasing TOWER medical in 2012.

3. Rise in amount of Insurance and Superannuation Jobs available. - Scoop.co.nz

The latest data from SEEK has revealed a month to month jump of 40% in the amount of insurance and superannuation jobs available, much of the growth coming from Auckland and Canterbury.

4. Health Insurance Claims hit $1 billion for the year. - Good Returns

The milestone was reached in the March quarter with insurance funded healthcare in NZ passing $1,000 million. The number of policy holders over the age of 65 continued to grow with the number reaching 150,000 in March.

5. NZ Government asking for everyday Kiwis flag suggestions - Standfor.co.nz

Submissions for new flag designs and what we stand for are being requested by the NZ government. What do you stand for?

6. Health: Study links long car commutes to weight gain. - NZ Herald

People who have changed from their routine of driving to work to walking, cycling or using public transportation lost significant amounts of weight. The research was led by the University of East Anglia in the UK. The longer the commute, the more the weight loss as commutes over 10 minutes leading to a loss of 2kg and a huge 7kg on average for journeys of more than 30 minutes.

7. Opinion: Is Auckland a housing bubble and will it burst? - NZ Herald

Every month we read news about soaring Auckland house prices, with the figures just becoming more and more bloated and out of reach of everyday Kiwis. Is this a permanent trend or a housing bubble that is set to burst?

Visit us at www.sprattfinancial.co.nz. 

Largest Southern Cross Travel Claims 2014/15

In the wake of Southern Cross announcing that they would be waiving the 'trivial' $100 excess from their travel insurance policies, they have also released the top 10 largest travel insurance claims from the past year, demonstrating just how necessary appropriate travel insurance can really be.

The list itself for the first time does not include only New Zealanders claiming from travel overseas. A claim totalling $236,000 was made by a foreigner who suffered a stroke while travelling through New Zealand and was forced into hospitalisation with an extended treatment. The CEO of Southern Cross Travel Insurance remarked that in comparison to any of these claims, the small cost of insuring your travel paled into insignificance.

The full list is as follows:

Highest value travel insurance claims for 2014:

1. $405,000 - surgery required for cancer in the USA.

2. $365,000 - air evacuation after a brain bleed and heart attack in North America.

3. $285,000 - blood clot while travelling caused a cardiac arrest on a plane, admitted to hospital in the US.

4. $236,000 - a tourist visiting New Zealand suffered a stroke requiring extensive hospitalisation and rehabilitation and transport to home country by air ambulance.

5. $193,000 - suffered a stroke in Europe, required air ambulance.

6. $177,000 - fell from a roof and fractured several leg bones in the USA.

7. $122,000 - family member of an international student diagnosed with cancer.

8. $120,000 - hit by a motorcycle in South East Asia.

9. $112,000 - heart attack while visiting New Zealand, required surgery and rehabilitation.

10. $105,000 - accidental fall resulting in broken bones in Europe

Source: Southern Cross Travel Insurance.

Whether you are travelling overseas, or you are a tourist looking to visit New Zealand, organising travel insurance should be the top of your priority list. Unless, of course, you have a spare $400,000 you're looking to offload.

Read how travel insurance bailed me out on my trip to the USA.

Read my experiences with the Southern Cross Travel claims process.

Need a free, no obligation quote? Use our contact form here.

Breaking Financial News

1. Asteron receives A+ rating from Standard and Poor's. - Good Returns

Asteron, New Zealand's fourth largest life insurer received a confirmation of its strong market position as S & P granted it an A+ rating for financial strength. New business has increased 14% to build further upon their 41% increase of the previous year.

2. New pandemic insurance to prevent crisis with early payouts. - Yahoo! New Zealand

In the past, governments have been forced to raise funds in the aftermath of disease outbreaks. The World Bank, the African Union and other financial institutions are attempting to circumvent this by designing insurance schemes which will pay out immediately as an outbreak happens, providing the funds to better manage the crisis before it fully takes hold.

3. Celebrities insuring their body parts for up to $40 million. - MTV.com

According to celebrity insiders, Taylor Swift's legs are worth $40 million and Kim Kardashian has had her derriere insured too. Famous singers have insured their voice and piano players have insured their fingers through brokers for a princely sum.

4. Southern Cross axes 'trivial' Travel Insurance Excess. - NZ Herald

In great news for travellers and Southern Cross members, Southern Cross have removed the $100 excess for travel insurance claims, calling the amount 'trivial' and unnecessary. Southern Cross hoped that the removal of the excess would encourage travellers to seek medical attention for minor ailments.

5. Crowded Kiwisaver market sparks concern. - Good Returns

With so many Kiwisaver providers on the market, fears are arising that things as they are will become unsustainable. A major expert in the field says that he could imagine a future with only a few large providers with multi-sector portfolios.

New Zealand Insurer Brings back Full Replacement cover for houses.

Tower Insurance has gone against the prevailing wind of house insurers to offer a full replacement option for houses destroyed by fire. Most insurers in the industry moved to a sum assured model at the beginning of 2013, meaning that they would pay out an agreed upon value (the sum assured) if the house was damaged or destroyed by fire. The sum assured model often sometimes not provide sufficient funds to totally replace the value of the house, just going most of the way.

“Being able to provide full replacement for fire means one less worry for homeowners in the traumatic event of a fire,” Tower CEO David Hancock said. “Tower can guarantee your home will be fully rebuilt if it’s destroyed by fire, regardless of the cost or the sum you’re insured for.”

Providing a full replacement option should set Tower apart in the fire and general insurance marketplace and give customers another option for covering their houses which is always a good thing. Tower says that they made the move to bring back full replacement in light of comments from their customers who found the sum assured format confusing. “People want to know that if the worst happened they can at least know that they will get their house back the way it was.”

If Tower's move proves successful, and they can maintain affordability, it will be interesting to see if other insurers follow suit. What do you think of Tower's move? Do you find the current home insurance confusing? Would you rather go with a full replacement option?

Visit our house insurance partners.

Send an enquiry about home insurance.

Financial News Roundup October 2014

1. Some Insurers refusing payouts to injuries suffered while drunk. - NZ Herald

2. Southern Cross posts a $1 million annual loss. - NZ Herald

3. BNZ cuts its 2 year mortgage rate. - Interest.co.nz

4. Auckland house prices rise to a new record. - NZ Herald

5. Fidelity Life posts record result. - Good Returns

6. Here's how Generation Y can buy a house. - Andrew King

7. NZX 50 is weathering the financial storm. - Mark Lister

Visit us at www.sprattfinancial.co.nz 

News: Onepath Life Insurance to become truly One.

Onepath Life Insurance has announced that it will be consolidating its two life insurance companies into one. The move is primarily about simplification, and will not result in any changes to its existing insurances. Currently, Onepath has one company which services advisers and brokers and one company which directly sells their life insurance product, distributed through banks.

The process has begun, subject to approval from the Reserve Bank. There is anticipated to be no issue moving forward, and the merger is expected to be approved and completed. Onepath says that the merger will enable them to avoid two companies worth of compliance costs and streamline their services, ultimately aiming to provide a future benefit to customers.

Onepath is also planning a major product relaunch next month which will feature a focus on income protection. We will keep you posted with what this entails, what changes could be made and how this could benefit you as news emerges.

Changes are on the path ahead for Onepath.

Finance News Roundup 10/9/2014

1. People prioritising risk to their possessions over risk to themselves when it comes to purchasing insurance. - Insurance Business Online

2. Is Term Life Insurance for seniors over 60 a smart buy? - Evan Carmichael

3. Britain faces financial storm as world prepares for possible Scotland breakaway. - Daily Telegraph

4. Australia and New Zealand are the world's greenest real estate markets - Property Observer

5. Crashes caused by uninsured drivers costing the country millions. - The Northern Advocate

6. Peter Lyons: Is New Zealand's prosperity real? - NZ Herald

7. How to Afford an Investment Property - Even when you can't. - Your Investment Property Mag AU

Finance News Roundup

1. NZ Herald Finance News Q & A including Kiwisaver members protecting themselves from a big drop in balance. - NZ Herald

2. Advice: Misleading an insurer can lose your cover. - NZ Herald

3. NZ Dollar headed for weekly decline against the US - Yahoo Finance

4. Fonterra cuts new season milk price. - Yahoo Finance

5. Collection of current home loan rates. - Good Returns

6. Why Total Permanent Disability Cover is underbought. - Good Returns

7. How the housing boom has cost everyday New Zealanders dearly. - NZ Herald

Financial News Roundup

1. Why women get a raw deal when it comes to insurance. - Diana Clement (NZ Herald)

2. Submarine Businessman charged over a $22 million insurance scam. - NZ Herald

3. Implementing a long term wellness solution for your business. - Southern Cross

4. How to manage finance for a modern blended family. - Spicers.co.nz

5. How telematics is revolutionising car insurance. - NZ Herald

6. Tower Insurance has sold its remaining Life Insurance business to Foundation Life - Good Returns

7. Auckland's house price average rises to record high. - NZ Herald

For more info on our services, head to www.sprattfinancial.co.nz

Finance News Roundup

1. Diana Clement: Reliable Data is Vital for Property Investment - NZ Herald

2. Hundreds of Insurance Claims already made in the wake of the Auckland storm. - NZ Herald

3. Global Insurance Giant gets approval to operate in New Zealand. - Insurance Business Online

4. Reminder: Kiwisaver members get additional government tax credits. - Good Returns

5. International: IMF lowers forecast for US economic growth. - NZ Herald

6. Government slams Auckland Unitary Plan - Interest.co.nz

7. House Prices Up but Volume of Sales Down - Interest.co.nz

Insurance News Headlines 19/05/2014

1. Christchurch Earthquakes - The Lessons Learned (Video) - Insurance Business Online 

2. IAG Welcomes Commission Approval for Lumley Deal - NZ Herald

3. 3 Reasons Retirees May Not Be Doomed After All in the wake of the Economic Downturn - Yahoo Finance NZ

4. 60% of Christchurch Earthquake Claims have now been finalised - Interest.co.nz

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News of the Week

1. Health Insurance claims near $1 billion. - TV 3 News

2. More kiwis at risk as fewer have Health Insurance. - Stuff.co.nz

3. Britain's Most Bizarre Insurance Claims. - Daily Mail (UK)

4. Perspective: Roy Morgan paints sobering picture of Insurance coverage. - Good Returns

5. Perspective: Health Funds says Roy Morgan research flawed and doesn't match what they are seeing. - Good Returns

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