The Insurance Council of New Zealand (ICNZ) and its members support the proposed changes to legislation to improve consumer protection.
This week, Minister Kris Faafoi announced that the government plans to regulate financial conduct and focus on fairer outcomes for insurance customers.
Tim Grafton, chief executive at ICNZ, said they’re generally supportive of the plan – noting that all their members already adhere to the Fair Insurance Code to ensure high standards of service and delivery.
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ICNZ also supports the government’s plan to ban sales incentives based on volume or value targets, especially as they apply to insurance brokers.
“Legislation in this area will address the first-mover disadvantage insurers struggle with and in removing these incentives help customers have confidence that both the sales and underwriting teams behind their policies have their needs front of mind,” Grafton said.
“We do note that there are still impediments to insurers’ ability to be responsible for understanding customers’ needs are met when brokers’ contracts often prohibit insurers from contacting their insureds except via the broker.”
“It will be important that there is clarity around the overlapping regulatory regimes and that sufficient time is allowed for a smooth transition that minimises regulatory costs,” Grafton concluded.
