tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Friday, July 10th, 9:59PM

Insurance

rss
Latest Headlines

Govt reveals plans to change insurance rules

The onus of disclosure will shift to insurers under new rules revealed for the insurance sector.

Wednesday, December 4th 2019, 6:37AM

Commerce Minister Kris Faafoi has revealed the changes the Government plans to make as a result of its review of insurance contract law.

Submissions were sought earlier this year. The Government was concerned about issues of disclosure, how easy it was to understand and read policies, and unfair contract terms.

“Insurance is vitally important in supporting consumers and businesses to be financially resilient when unexpected events happen,” Faafoi said.

“The current law is outdated, and many insurance policies are complex and difficult to follow. This means consumers can be buying insurance products they don’t understand, which can be poorly suited to their needs, and can leave them in the dark about what they should disclose to their insurer."

Changes the Government has agreed on include placing the responsibility on insurers to ask consumers the right questions when processing new insurance policies, rather than leaving it to consumers to know what to tell the insurer.

Policies will have to be written and presented clearly, so that consumers can easily understand them.

Insurers will need to respond proportionately when consumers don’t disclose something they should have, or misrepresent themselves.

There will also be stronger protections for consumers against unfair terms in insurance contracts.

The Financial Markets Authority will be given extended powers to monitor and enforce compliance with new requirements.

“All New Zealanders deserve the assurance that when they claim for losses, their policy will provide the cover they expected. However, longstanding issues with insurance contract law have been undermining the benefits of being insured," Faafoi said.

“These measures will complement decisions the Government made earlier this year requiring insurers and other financial service providers to treat their customers fairly.

“It’s about ensuring financial products and services are appropriate for consumers to use and properly meet their needs.

“We want to be sure we’ve landed on solutions that will work in practice, so we expect to consult with the public next year on draft legislation before any changes come into effect."

Tags: Disclosure insurance Kris Faafoi

« Ballantyne: Advisers don't own clientsProposed changes should help industry, insurers say »

Special Offers

Comments from our readers

No comments yet

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
Insurance Briefs

Less stressed during lockdown
New Zealander’s health and wellbeing had surprising benefits from the Covid-19 lockdown.

Southern Cross supports new safe haven for at-risk pets
Southern Cross Pet Insurance has teamed up with Pet Refuge to provide temporary shelter for animals affected by family violence.

nib Foundation supports Lifeline to the tune of $150,000
To support the growing mental health needs of Kiwis emerging from the Covid-19 pandemic, Lifeline Aotearoa has increased its service capacity thanks to a $150,000 grant from nib foundation, the charitable arm of nib New Zealand (nib).

Southern Cross halves staff numbers
Southern Cross Travel Insurance is slashing its staff numbers from 90 to 45 people.

News Bites
Latest Comments
  • Harking back to the old days
    “Tactical move by CIGNA and looks like they have a lot of bench strength now in sales, underwriting and product / pricing...”
    15 hours ago by hitting rock
  • Greens want ACC extended to cover sickness
    “Never happen. The Greens are such an aspirational bunch. Must all the weed. They 'want' all sorts of unlikely things...”
    18 hours ago by All hat no cattle
  • Harking back to the old days
    “Really positive news. NZ has been blessed by many successful leaders and it is good that their skills can skill be utilised...”
    24 hours ago by Francis L
  • Harking back to the old days
    “I dare say Cigna just got that extra grunt it's been looking for....”
    1 day ago by Matron
  • Greens want ACC extended to cover sickness
    “The Greens have no idea The purpose of the Woodhouse report was to remove the "at fault" component of accidents Sickness...”
    2 days ago by LNF
Subscribe Now

Cover Notes - Specific news aimed at risk advisers

Previous News

MORE NEWS»

Most Commented On
About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com