Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Compare advised and non-advised
Life Products in New Zealand
Presented by Alan Rafe, CEO of Quality Product Research, at t...
Learning objectives
• Understand the differences between the main direct and advised life
products
• Understand the differ...
Life Product Review
Bank Direct Advised
ANZ AA Life AIA
BNZ Cigna AMP (RPP)
Co-op SX Asteron Life
KiwiBank Pinnacle Fidelity Life
Westpac OneP...
0
5
10
15
20
25
20 25 30 35 40 45 50 55
%Difference
Age
Monthly Premium Rates Male Non-Smoker $200,000 Life Insurance
Non ...
0
10
20
30
40
50
60
70
80
90
100
20 25 30 35 40 45 50 55
$MonthyPremium
Age
Monthly Premium Rates Male Non-Smoker $200,000...
-3
-2
-1
0
1
2
3
4
5
6
7
20 25 30 35 40 45 50 55
%Difference
Age
Monthly Premium Rates Male Non-Smoker $200,000 Life Insur...
Quality Rating
Provided by: Quality Product Research Limited
Head to Head
(insert head to head between Asteron and Co-op)
- Life Cover Product Review
- Funeral Product Review
Non-underwritten life product review
Non-underwritten Life Products
Product
• Provide cover with no underwriting questions from ages 16 To 64
• Has a number of exclusions based on pre-existi...
Comparison of Products
Company Entry Age Sum Insured Additional Exclusions –Pre
Existing Conditions
Hazardous Activities
C...
Placement - Distribution
• Direct from Web sites or over the phone.
• Sovereign has distribution agreements with State Ins...
Price
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 4...
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 4...
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 4...
Future Premiums
Male $100,000 Non Smoker Age 30
BNZ ASB
30 year Old Easy Life Underwritten Difference Simple Life Underwri...
Promotion
ASB
BNZ
State Insurance
Example of a direct insurance
declaration is at right
Note the reference to the
exclusions brochure
Note the customer
acce...
Issues
• It would be difficult for people to understand what they are actually
covered for.
• Spending a bit more time at ...
Exercise
• Three advantages of buying direct
• Three advantages of buying from an adviser
• Three reasons a why a client w...
Provider Product Min. Age Max. Age Min. Sum
Insured
Max. Sum
Insured
AA Life Funeral cover 50 79 $3,000 $30,000
AMI Insura...
Research Ratings – Funeral Plans
AA Life AMI Cigna Dorchester
Life
Fidelity
Life
Greenwich
Life
Legacy
Life
Partners
Life
...
Comparison to Underwritten Life Insurance
• Average cost for to age 80 level cover
• Based on estimated cost for same sum ...
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
$90.00
$100.00
55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70
...
$-
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70
RatePer$10,000
Age
...
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70
Cover Co...
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
$90.00
$100.00
55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70
...
Reasons to take Funeral Cover
• Older (above 80)
• People that have a pre-existing
• People that do not like answering hea...
Thank You
Get the latest news by following us at:
Chatswood Consulting Blog
Chatswood Consulting LinkedIn
Quotemonster Blo...
Advised-Underwritten Insurance versus Non-advised+non-underwritten products
Advised-Underwritten Insurance versus Non-advised+non-underwritten products
Advised-Underwritten Insurance versus Non-advised+non-underwritten products
Advised-Underwritten Insurance versus Non-advised+non-underwritten products
Advised-Underwritten Insurance versus Non-advised+non-underwritten products
Advised-Underwritten Insurance versus Non-advised+non-underwritten products
Upcoming SlideShare
Loading in …5
×

Advised-Underwritten Insurance versus Non-advised+non-underwritten products

1,113 views

Published on

Alan Rafe, CEO of Quality Product Research, delivered this address at the recent Professional Advisers Association (PAA) development days around the country.

Published in: Business
  • Be the first to comment

Advised-Underwritten Insurance versus Non-advised+non-underwritten products

  1. 1. Compare advised and non-advised Life Products in New Zealand Presented by Alan Rafe, CEO of Quality Product Research, at the IFA-PAA Continuing Professional Development Roadshow September 2016
  2. 2. Learning objectives • Understand the differences between the main direct and advised life products • Understand the different expected future premiums for these groups of products • Understand the main feature differences • Understand the premium / convenience / feature trade-offs available to clients • Understand the value of these different offers to client groups
  3. 3. Life Product Review
  4. 4. Bank Direct Advised ANZ AA Life AIA BNZ Cigna AMP (RPP) Co-op SX Asteron Life KiwiBank Pinnacle Fidelity Life Westpac OnePath ASB Partners Life Sovereign Data Set
  5. 5. 0 5 10 15 20 25 20 25 30 35 40 45 50 55 %Difference Age Monthly Premium Rates Male Non-Smoker $200,000 Life Insurance Non Advised vs Advised Percentage Difference
  6. 6. 0 10 20 30 40 50 60 70 80 90 100 20 25 30 35 40 45 50 55 $MonthyPremium Age Monthly Premium Rates Male Non-Smoker $200,000 Life Insurance Direct AA Life Cigna Southern Cross Pinnacle
  7. 7. -3 -2 -1 0 1 2 3 4 5 6 7 20 25 30 35 40 45 50 55 %Difference Age Monthly Premium Rates Male Non-Smoker $200,000 Life Insurance Advised vs Banks Percentage Difference
  8. 8. Quality Rating Provided by: Quality Product Research Limited
  9. 9. Head to Head (insert head to head between Asteron and Co-op)
  10. 10. - Life Cover Product Review - Funeral Product Review Non-underwritten life product review
  11. 11. Non-underwritten Life Products
  12. 12. Product • Provide cover with no underwriting questions from ages 16 To 64 • Has a number of exclusions based on pre-existing cover, occupation and hazardous pursuits • Three main providers • BNZ • Sovereign (for ASB and State Insurance) • Greenwich Life
  13. 13. Comparison of Products Company Entry Age Sum Insured Additional Exclusions –Pre Existing Conditions Hazardous Activities Coverage BNZ 16 to 64 $100,000 • 3 years • If you have ever had a loading or been declined not eligible Yes ASB 16 and 55 $500,000 5 years and for any pre- existing condition for which you are taking medication for No Greenwich 21 to 60 $50,000- $200,000 • 3 years Yes
  14. 14. Placement - Distribution • Direct from Web sites or over the phone. • Sovereign has distribution agreements with State Insurance and ASB • ASB actually offer a fully underwritten product (my Life) which is cheaper than the public version but only when login into your account. • BNZ offers over the phone and both product types online. • Greenwich offers web site and via direct mail and telemarketing
  15. 15. Price
  16. 16. $- $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 MonthleyCost$100,000 Age BNZ Options Avg 46% more expensive BNZ Easy Life BNZ Comprehensive
  17. 17. $- $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 MonthlyCost$100,000 Age Sovereign Options Avg 68% more expensive Sovereign Simple Life Sovereign TotalCare Max
  18. 18. $- $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 Price$100,000 Age Price Comparison Non-Underwritten BNZ Easy Life Sovereign Simple Life Greenwich Life Quick Cover
  19. 19. Future Premiums Male $100,000 Non Smoker Age 30 BNZ ASB 30 year Old Easy Life Underwritten Difference Simple Life Underwritten Difference 3 Years $ 761.28 $ 505.08 $ 256.20 $ 800.52 $ 502.56 $ 297.96 5 Years $ 1,261.92 $ 853.80 $ 408.12 $1,322.64 $ 832.08 $ 490.56 10 years $ 2,574.24 $ 1,821.00 $ 753.24 $2,746.68 $ 1,713.72 $ 1,032.96 20 Years $ 6,714.35 $ 4,752.84 $ 1,961.51 $7,397.28 $ 4,359.72 $ 3,037.56
  20. 20. Promotion
  21. 21. ASB
  22. 22. BNZ
  23. 23. State Insurance
  24. 24. Example of a direct insurance declaration is at right Note the reference to the exclusions brochure Note the customer acceptance of a no advice sale
  25. 25. Issues • It would be difficult for people to understand what they are actually covered for. • Spending a bit more time at the beginning of the process to ensure at claim time you do not have an issue • Easier for the provider to make sales utilising this type of product as the sales people can spend less time on the phone asking in-depth questions and a 100% issue rate (compared to 50%-60%) • Could have an impact of the public perception of life insurance if companies do not pay claims • Underinsurance in NZ is an issue and the more we can do to increase this the better • Opportunities to upsell cover at a later date
  26. 26. Exercise • Three advantages of buying direct • Three advantages of buying from an adviser • Three reasons a why a client would buy a non-underwritten product
  27. 27. Provider Product Min. Age Max. Age Min. Sum Insured Max. Sum Insured AA Life Funeral cover 50 79 $3,000 $30,000 AMI Insurance Funeral Plus Policy 50 75 $3,000 $15,000 Cigna Funeral Plan 55 85 $5,000 $15,000 Dorchester Life Funeral Plan 50 79 $5,000 $15,000 Fidelity Life Funeral Fund 16 64 $2,000 $12,000 Greenwich Life Funeral Plan 30 70 $5,000 $20,000 Legacy Life Funeral Plan 50 79 $4,000 $15,000 Partners Life Funeral Plan 55 85 $5,000 $20,000 Pinnacle Life Funeral Cover 30 75 $2,000 $25,000 Southsure Funeral Cover 55 85 $5,000 $15,000 State Insurance Value Plus Funeral 50 75 $3,000 $15,000
  28. 28. Research Ratings – Funeral Plans AA Life AMI Cigna Dorchester Life Fidelity Life Greenwich Life Legacy Life Partners Life Pinnacle Life South sure State Percentage of Highest 88.8% 94.9% 91.0% 87.4% 96.3% 100.0% 92.5% 96.2% 98.5% 90.7% 95.2 %
  29. 29. Comparison to Underwritten Life Insurance • Average cost for to age 80 level cover • Based on estimated cost for same sum insured (min premium issues) • Average cost of life is based on five insurers
  30. 30. $- $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 RatePer$10,000 Age Life Cover vs Funeral Cover Average $30 per month more expensive for Funeral Avg Funeral Avg Life
  31. 31. $- $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 RatePer$10,000 Age Life Cover vs Funeral Cover Average with 100% loading Avg Funeral Avg Life 100% Loading
  32. 32. $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 Cover Comparison Funeral Cover Level to age 80
  33. 33. $- $10.00 $20.00 $30.00 $40.00 $50.00 $60.00 $70.00 $80.00 $90.00 $100.00 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 RatePer$10,000 Age Life Cover vs Funeral Cover Avg $30 per month more expensive Avg Funeral Avg Life Level age 35
  34. 34. Reasons to take Funeral Cover • Older (above 80) • People that have a pre-existing • People that do not like answering health questions • Quick and simple • We are living longer
  35. 35. Thank You Get the latest news by following us at: Chatswood Consulting Blog Chatswood Consulting LinkedIn Quotemonster Blog Quality Product Research LinkedIn

×