Chubb Life Insurance New Zealand is introducing a change to how it calculates commission clawbacks, with the insurer saying the adjustment aims to simplify processes for advisers and staff.
In a recent adviser newsletter, Chubb Life explained that clawbacks are currently determined as a percentage of the total upfront commission paid, based on the number of premiums a customer has paid within a 24-month period.
“From 20 October, we’ll calculate clawbacks based on the number of months elapsed since the start date of the new policy or benefit,” the company said in its update.
“This adjustment is designed to reduce complexity, particularly in scenarios involving policy suspensions or arrears,” Chubb Life added.
The insurer said it believes the change will make the system more streamlined and transparent for advisers.
Chubb Life also confirmed that revised Remuneration Schedules will be sent directly to those holding a Master Agency.
The update follows a series of developments at Chubb Life NZ this year, including enhancements to its Group Insurance products. The insurer has revised policy documents to meet WriteMark plain-English standards and introduced improvements to income protection benefit tapering, allowing for more flexibility across different salary levels. New optional benefits, such as Injury Support Benefit, Personal Accident and Major Burns, have also been added to give employers greater choice in tailoring cover for staff.
Chubb NZ also reported a strong solvency position as of June 30, 2025, with a solvency ratio of 198% and solvency capital of NZ$96.19 million – exceeding its prescribed capital requirement by NZ$47.64 million. The insurer continues to hold an “AA-” financial strength rating from S&P Global.
Parent company Chubb Ltd. recorded solid earnings for the second quarter of 2025, supported by underwriting gains and investment income. The global insurer’s net investment income rose 6.8% to a record US$1.57 billion, while property and casualty premiums (excluding agriculture) grew 5.8% year on year. Its combined ratio for P&C improved to 85.6%, reflecting continued strength across core markets.
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