Quotemonster roadshow session one June 2019
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Copy of the slides used in the first of two Quotemonster workshops in May and June 2019. Date of upload is 19 July 2019. Material current in June. Note research is dynamic, and has been revised even during the period of the workshops - you must be a financial adviser and access the live site to use the research. If you are a consumer, please be aware that this is training material and has already been superseded on the live site. Please refer to a financial adviser for advice.
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Quotemonster roadshow session one June 2019
- 1. SURVIVE THE SHIFT Getting on board with Quotemonster technology SESSIONONE 1
- 2. Who weare Quality ProductResearchLimited • Russell Hutchinson Co–founder and Director • Alan Rafe Co-founder and CEO • Kelly Pulham Business DevelopmentManger • Albert Liu IT Manager • Fran Hutchinson Pricing analyst • ResearcherDoreen Dutt 2
- 3. Quotemonster Weenable financial advisers to price and comparethe marketfor Life and Health insurance products in a simple and quick process www.quotemonster.co.nz 3
- 4. Companies 4
- 5. Agenda – Introduction – Regulation overview – Key challenges – Methodology – What’s new SESSIONONE 5
- 7. “Buttheideaofanon-prescriptive, principlebasedregulation takessometimeto getyourheadaround,becauseyouaren’tbeinginstructed strictly onwhattodo. You’rebeingtoldtheoutcomeyouneedtoachieve,buthowyouachievethemis uptoyou.That’smakingpeoplereelalittle.” CharlesLaing,CrestoneCompliance 7
- 8. Regulation outline –the good • Prescriptive vs Principle • Process is dependent onnature and scope • Provides flexibility as not onesize fits all • Supports individual adviser businesses (lowcost) • Does notrequire huge investment in infrastructure. Platforms available 8
- 9. Questions youmay need to answer 9 You’re selling these products just to get paid? You sold me this Insurer’s products because they pay the most commission? Can you prove this is the best product, not the best paid? My bank product was working fine for me you only replaced to be paid commission? Every time you meet with me you increase my cover for no reason I made a claim and I was not paid? You told me you researched the market?
- 10. Challenge 1 “You sold me this Insurer’s products because theypay the most commission” Evidence Youneed tohavein placea defendableproviderselection process. • If youonlyhaveoneagency agreement youneed tolimit scope • If yousell multiple providersyouneed todemonstrateyourprocess 10
- 11. Challenge 2 “You told me youresearched the market to find the best product but you only sell one company’s products” Evidence Will need to ensureyouhavecompletedamarketproductresearchreport.Againthis comes downtothe providerselection process. Issues • Personalisedaroundtheclient andproductsselected • Criteriaaroundselection.How this meetsclients needs. 11
- 12. Challenge 3 “You did nottell me the differences whenyou replaced my product?” Evidence Need tobeclear onservice provided.In thecurrentenvironmentif nocomparisonis doneyou need todisclose risksofreplacement. Thismaynotbesufficientin newenvironment 12 Criteria: • Pricedifferences • Materialdifferences • Itemsnotcovered • Existingmedicalconditions • Commonitemscovered • Futurepremiumprojections • CreditRating • Underwritingrequirements
- 13. Challenge 4 “I have no idea what I am coveredfor and how it meets my needs” Evidence Need toensureyouprovidedetailedproductcoverage anddetailedneeds analysisandbeable to providenotesonanyvariations. 13
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- 15. Questions 15
- 16. Methodology Value based Personalised Ratings vary based on: • Four factors o Definition o Amount o Frequency o Incidence • Claim scenarios • Age • Sex • Occupation class and type • Options you choose 16 • Based on policy wordings • Must be comparable • Transparent – share data
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- 20. Sub-items 20 Company Code AAL AIA AMPL AMPR ASB AST BNZ CIG COU FID MAS MOM ONE PAR PIN SOV WES Provider Status NA In Active N N N N N N N N N N N N N N N N *This insurer offers this benefit 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Full payment for melanoma not paid until greater than 1.5mm Breslow. -4 -4 -4 -4 -4 -4 -4 -4 -4 -4 -4 Kaposi's Sarcoma and other cancers directly related to HIV and AIDS are excluded -2 -2 No alternative option of full payment for melanomas that have evidence of ulceration but not meet the Clark or Breslow classification otherwise required. -2 -2 -2 No organs other than breast and prostate covered if an operation to arrest spread of the malignancy is performed which involves the removal of the entire organ affected in order to arrest the spread of malignancy is deemed necessary by an appropriate -2 -2 -2 No partial for Chronic Lymphocytic Leukaemia Rai 0 -4 -4 -4 -4 -4 -4 -4 No Partial for less than 1mm -0.5 -0.5 -0.5 -0.5 -0.5 -0.5 -0.5 -0.5 -0.5 -0.5 No partial for melanoma between 1mm and 1.5mm Breslow or Clark L 3 -5 No partial for melanoma that does not meet the full payment criteria -5 -5 -5 -5 -5 No partial for non-melanoma skin cancer -0.2 -0.2 Partial payment credit 8 Six month standdown for cancer of the breast, prostate, skin and bowel 0 Tumours treated by endoscopic procedures alone are excluded -2 -2 -2 Totals 100 100 95.5 95.5 93.5 100 86.5 84.5 91.5 100 89.5 93.8 96 100 86.5 99.5 85
- 21. Example Cancercritical 21 Company Definition Incidence Amount Frequency y QPR Score Score COMPANY Y 86.5 43.46% 100% 1 37.59
- 22. New features • Mix and match health insurer with any life insurer • Better userexperienceonmobile devices • More detailed Head to Head reports • Quote standalone and acceleratedTrauma and TPD together • Full history of old reports for each client 22
- 23. Subscription options 23 Monthly subscriptions through the website using credit card Get in touch with us today for a special deal on annual subscriptions
- 24. Demonstration Howto register: • Registration / login tab • Contact tab 24
- 25. Thank you 25
Editor's Notes
- In addition to the main adviser companies we also provide detailed research on the other main market participants. We quote all main providers as well as banks and direct providers for life and Trauma.
- Rather than just looking at the legal requirements and make it a session around the code requirements we have based this session around key questions you maybe asked and how QM can help you approach these. to demonstrate. We have structured these around Challenges
- We think that you all provide great advice and have done for many years. Many of you have dedicated your life to helping and supporting clients through many tough and stressful situation. For you the client has always been at the center on your advice. You now find yourself at the center of a process that is questioning your advice and you will need to change to respond. For many it will not change the advice that you provide, what you will need to do is demonstrate how you have provided the advice. This session is designed to show you how research and particularly how our product can support you in that process. We are still responding to these changes and still await the final disclosure requirements but will be ready to support you when the new environment goes live. So your are getting pressured from all these different stakeholders.
- We are not telling you how to sell and which provider to recommend. The regulator is also not telling you what you need to do. Our regulatory environment is not prescriptive (apart from disclosure) it means that you have control of how you recommend and the process you use. “flexibility” This enable you to ensure that the client is at the center and you are able to design a process that meets their needs. Does not require significant investment in your own platform Cost associated with licensing are not significant to be a FAP Essential infrastructure is not expensive as many platforms can support your advice on a per month basis just like us (SAS)
- You maybe faced with many questions from all the different areas. Client Regulator, disputes, insurers
- You need to have a provider selection process that is defendable on how you arrived at the provider that is not commission based. This is governed by the nature and scope of service so will be dependent on who you have agency’s with but many advisers will start at a level as the market as a whole and eliminate providers that do not meet the clients specific needs. This could revolve around price product options and product features and benefits. Our tool provides you the ability to compare the market quickly and effectively not just on price but quality. Let me show you how that works. FOLLOWED BY A LIVE DEMONSTRATION
- Advisers will need to ensure that when doing a comparison they ensure the client understands which products the adviser is able to sell and or which products they can give advice on. If they have access to only on Provider this should be clearly described and the limits in Advice is explained. You could provide the option to provide advice on adviser products but could change a fee for this service. FOLLOWED BY A LIVE DEMONSTRATION
- This is a key pressure point when it comes to the regulator and life and health companies. You will need to demonstrate that you have analysed and have clearly demonstrated these to the client. . FOLLOWED BY A LIVE DEMONSTRATION
- You will need to ensure you have and the client have a clear understanding of what the client is covered for and how your solution meet those needs. We provide a SOA writing tool in AdviceMonster which does automate this process for you. Interesting we are already discussing with advisers the issue around providing differing service models for different types of clients. FOLLOWED BY A LIVE DEMONSTRATION
- It is clear that to enable you to cover this key issue of suitability you will need to have a detailed report when advice is given. Think that limiting advice to execution only will be a thing of the past except in limited circumstances. Certainly companies that use advisers on a non-advice basis will find it more difficult to operate. With the last couple of reviews from FMA/ RBNZ product providers will need to ensure suitability of product for clients. This is good for advisers as that is what you do. FOLLOWED BY A LIVE DEMONSTRATION
- Our research is value based and I do get a number of adviser asking how this is different. Many research companies take a feature based approach which essentially provides fixed scores for adding additional items to a product. So if a company adds say Mad Cow disease they may provide an extra 5 points. We may add these points but would adjust this based on the likelihood (or value) to the client. To determine the value to a client we have a four-factor methodology.
- These are the factors we take into consideration
- If we look at a research report we list each item we rate on the left and since this is Trauma we can see that Cancer is top of the list. This is sorted the highest at top so the numbers mean the likelihood someone will claim. AIA has a cancer score of 43.46 which indicates that we estimate that AIA will pay roughly that proportion of the benefit of the policy, based on the policy wording weighted by the claim proportion (excluding the value of non-sum insured features).
- Look at the difference for a female. Much higher cancer claims so any differences in cancer wording has a greater impact on females than males. However heart attack means more to males. .
- We have three service options. 1. Is a pricing report which provides details of all the companies and pricing breakdown based on Life and product. Research which provides same pricing plus pricing for banks and detailed research for over 26 companies. This all includes the research report. SOA How to register demonstration