The Insurance Council of New Zealand – Te Kāhui Inihiua o Aotearoa – acknowledged the Financial Markets Authority (FMA) conduct and culture review of the fire, general and health insurance sector, and the need for constant improvement of the sector.
Mr Grafton, Chief Executive of ICNZ, says: “The snapshot we have of the sector as at October 2019 shows that much improvement is needed before the Financial Markets (Conduct of Institutions) Amendment Bill (COFI) comes into force as expected in early 2023. This gives the insurance sector the opportunity to work proactively with the FMA to address all areas of concern so we can meet their expectations at that time.”
Mr Grafton says it is important to note that much has been done since the review was undertaken almost two years ago to improve systems and customer outcomes. “We do not believe that the report reflects the current state for ICNZ members.
“Our sector is fully committed to good customer outcomes as seen by the multiple responses to customer vulnerability arising during and from the COVID-19 lockdowns.”
Mr Grafton says that insurers must continually earn the trust and confidence of customers by making improvements to all aspects of their operations – including governance, systems and processes, products and distribution. “The new conduct regime under COFI reinforces this and provides the sector 18 months to get it right.”
ICNZ is fully supportive of steps to ensure good customer outcomes and is confident its members share this commitment.
ICNZ represents the fire and general insurance sector, with 16 of the 43 insurers approached as its members.