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. 

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?

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News Roundup

A round-up of all the insurance and investment news fit to print.

1. Tower to keep the remainder of its life insurance business after selling to Fidelity.
http://www.nzherald.co.nz/insurance/news/article.cfm?c_id=234&objectid=11181022

2. Brian Gaynor: Forget Obamacare, New Zealand has its own medical insurance issues to address.
http://www.nzherald.co.nz/insurance/news/article.cfm?c_id=234&objectid=11161510

3. Harbour Asset Management director of fixed interest, Christian Hawkesby, spells out the eight key indicators to watch over the next 12 months for fixed interest investors.
http://www.goodreturns.co.nz/article/976501630/fixed-interest-watchlist-for-fixed-interest-investors-in-2014.html

4. London-based economist Andrew Hunt casts his eyes over global markets.
http://www.goodreturns.co.nz/article/976501611/global-market-risks-outlined.html

5. $200 million dollar payout for quake hit schools.
http://www.stuff.co.nz/the-press/news/schools/9666386/200m-payout-for-quake-hit-schools

6. Sovereign is liable for $82 million after losing its battle with the Inland Revenue.
http://www.goodreturns.co.nz/article/976501661/sovereign-faces-big-bill.html

7. Less than a third of young people have the insurance cover they need.
http://www.radionz.co.nz/news/national/234688/low-levels-of-young-people-with-insurance

The Importance of Reviews

The New Year is a time of change and a time for resolutions. Each year, if possible, we like to take a look at our clients' insurance to see if there's anything that can be improved and we urge them to do the same thing. Here's why.

In the insurance business, things are in flux regularly. New products, new conditions and new regulations come and go in the marketplace, meaning that often we can find you are now paying too much for your insurance or can improve your cover. This year for instance, a number of new Southern Cross health insurance plans are in the works and Tower Life and Health Insurance has changed hands, with the Life branch now owned by Fidelity Life and the Health branch now owned by Newcastle Industrial Benefits. (NIB).

People’s lives are in flux as well.  Perhaps you have a new job, are acquiring your first home or are thinking of having children? Your insurance needs will thus change, and there may be better and more effective options out there for you to cover your new needs. We urge you to make sure your cover is up to date, and that you have the best current deals the marketplace has to offer.

Whether you need to expand or simplify your insurance, whether you're an existing client or not, we can review your insurances free of charge with no obligation.

Visit our official website for more information.

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Fidelity Acquires Tower Life Insurance - What You Should Know

Recently, Fidelity Life has acquired Tower Life, which means that all of the risk policies currently under Tower (Life Insurance, Total Permanent Disability, Trauma Insurance and Income Protection) will now be managed by Fidelity and be dealt with under the Fidelity name. If you have Health Insurance with Tower however, these policies will now be provided by NIB Health Cover.

The good news is that for clients with existing Tower policies, not a great deal is going to change. All of the terms and conditions on your current policies will remain the same and nothing will be renegotiated or changed. Sums assured will remain, as will any exemptions, add-ons to your policy, and no existing premiums will be altered in any way.

The changes will really only affect clients looking to take out policies in the future. With the change, the range of Tower insurance products will no longer be sold and will be replaced by the Fidelity range. If your Tower policy was acquired through us, we will remain on hand to help manage your insurance in the same ways as before and nothing will change.

For more information about the changeover or if you have any questions, feel free to call us anytime on (09) 307 8200 or by email at enquiry@sprattfinancial.co.nz.

The official announcement of the acquisition from Fidelity.

More information about our services here.