The Insurance Council of New Zealand (ICNZ) has unveiled an initiative aimed at enhancing transparency within the country's insurance industry.
This move, designed to enhance the level of clarity around the handling of complaints, represents a commitment to providing New Zealand insurance policyholders with a higher degree of openness, ICNZ said.
Traditionally, the ICNZ's Annual Review includes aggregate data on complaints managed by insurers and those escalated to independent dispute resolution services. However, in an effort to offer more nuanced insights, the council has now expanded its reporting framework.
The expansion involves a collaboration with key partners such as the Insurance and Financial Services Ombudsman Scheme (IFSO) and Financial Services Complaints Limited (FSCL). Together, they have developed a method to disaggregate complaint statistics by individual member companies, now accessible on the ICNZ's website.
With over a million claims processed annually, the industry sees a small segment – approximately 150 complaints – advance to these external resolution platforms.
“Insurers are right behind this initiative to build trust and offer further confidence to New Zealanders that the industry is committed to be open and transparent in handling their claims,” said ICNZ chief executive Tim Grafton. “We are working hard to support our customers, and we take complaints seriously when things go wrong, so we can do things better in future.”
Grafton said that, in the event of a complaint, customers should first attempt to resolve their issue directly with their insurer. Should this approach not yield a satisfactory outcome, the IFSO or FSCL stands ready to assist, potentially facilitating a resolution.
“Most cases are resolved between the customer and insurer with only a small number referred to the independent external dispute resolution schemes. These schemes will then investigate the complaint and make a decision either in favour of the customer or insurer, essentially confirming if the correct decision has been made,” he said. “ICNZ's members are committed to do the very best for their customers, and this initiative is aimed at increasing trust and improving transparency.”
Aside from expanding claims reporting, the ICNZ is calling for a major overhaul of the current fire service levy system.
