Public consultation on New Zealand’s insurance contract law has begun, Commerce and Consumer Affairs Minister, Kris Faafoi, has announced.
The Minister said a key consideration of the review of insurance contract law in New Zealand is whether there is a need for greater regulation of insurer conduct.
The review commenced in March (see: Review of Insurance Contract…) and the Minister has since released an Issues paper.
“A well-functioning insurance system, where all parties can transact fairly and with confidence, is vital to ensure insurance continues to serve all New Zealanders,” said Faafoi.
But he said the “significant problems” within the country’s insurance contract law were impacting the effectiveness of insurance markets.
“…issues highlighted by the Royal Commission over in Australia – have also highlighted the need to look at whether greater regulation of insurer conduct is required.”
He hopes that disclosure requirements for consumers will be among the issues addressed in feedback from those who make a submission during the consultation period.
Faafoi said that New Zealand’s insurance law is outdated with legislation spanning six different Acts, some more than a century old.
“The world has moved on and some parts of the law – like the disclosure obligations consumers face – no longer strike the right balance,” he said.
“Experiences following the Christchurch earthquakes – and more recently issues highlighted by the Royal Commission over in Australia – have also highlighted the need to look at whether greater regulation of insurer conduct is required.
“I will be considering the regulation of insurer conduct as part of the review,” he said, adding, “Insurance affects nearly everyone so I encourage everyone with an insurance story to let us have their views.”
Click here to make a submission until 13 July 2018.