More people are making official complaints when problems with their insurance providers come up, with the Insurance & Financial Services Ombudsman (IFSO) scheme accepting a record number of disputes in the past year.
From July 1 2024 to June 30 2025, the IFSO took on 600 disputes for investigation, a 25% increase from the previous year.
In total, it received 4293 enquiries and complaints across insurance and financial services over the past year.
Insurers providing financial services to retail clients must belong to an approved dispute resolution scheme, of which the IFSO is one.
When it comes to the disputes the IFSO investigated:
- 67% were about general insurance (including house, contents, vehicle and travel insurance)
- 29% were about health, life or disability insurance
- 4% was related to credit contracts and other financial services
House insurance continues to be the main source for complaints, making up 24% of all disputes.
This is followed by motor vehicle insurance at 19% and travel insurance at 18%.
While there is no single reason for the bump in disputes, Insurance & Financial Services Ombudsman Karen Stevens says the cost of living, and expectations from consumers about what their policies should cover - especially when their premiums have gone up - may be playing a part.
"Many of these cases were resolved quickly with assistance from our frontline team," Stevens says.
“However, we’re seeing a growing number of complaints that remain unresolved even after going through the financial service providers’ internal processes.
"These cases escalate into disputes that require formal investigation by the IFSO Scheme.”
House, car and contents insurance premiums have increased 51% over the past three years
According to insurance comparison website Quashed, its 2025 first quarter report shows general insurance - which it considers one house, one contents and one comprehensive car insurance policy - has increased by 51% compared to 2022's first quarter.
Quashed's chief executive Justin Lim previously told interest.co.nz insurance premiums have climbed significantly in the past three years.
And while some high insurance premiums were starting to level off this quarter compared to this time last year, New Zealanders are still being hit in the pockets, he says.
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