Overhaul of insurance regulations starts

The Insurance Council (ICNZ) has welcomed the first reading of the Contracts of Insurance Bill, saying the overhaul of the legislation is well overdue.

"This Bill has been long awaited," ICNZ chief executive Kris Faafoi said. The bill, when passed, will modernise New Zealand’s insurance law and bring it in line with international best practice, he says.

"The current legislation is widely acknowledged to be outdated, unwieldy and not fit for purpose in today’s world. The new Bill will help tidy up, rationalise and update New Zealand’s insurance law into a single framework to support well-functioning insurance markets for both insurers and consumers.

"We acknowledge there’s still a lot to do as we work through the details of the Bill and ensure a balanced approach is achieved that strengthens protections for consumers while promoting fairness, certainty and sustainability in the insurance sector.