The Insurance & Financial Services Ombudsman Scheme has received more than 86,000 cases over the 30 years since it launched in 1995.
In marking its 30 years of service to consumers and small businesses, the scheme’s Ombudsman, Karen Stevens says she is incredibly proud of the positive difference the IFSO Scheme has made in New Zealanders’ lives.
“For 86,328 consumers, we have made a difference, where they would otherwise have had to go to court or give up on having any resolution. Every case, every complaint and dispute resolved, is a reminder of why independent and accessible dispute resolution matters for New Zealanders. The IFSO Scheme has been here through good times and bad, providing a free service to those consumers who have needed it,” she says.
A statement from the scheme says that Stevens has been the Insurance & Financial Services Ombudsman since 1998, following the inaugural Insurance & Savings Ombudsman, Terry Weir.
She notes that the Scheme’s purpose “…hasn’t changed in three decades — to provide a dispute resolution service that is independent, fair, and accessible, and free for consumers.”
In 1995, the then Insurance & Savings Ombudsman Scheme began with 62 insurer participants which voluntarily joined the Scheme to provide a dispute resolution service for their customers.
It says most of those insurers are still part of the scheme, although there have been many changes over the 30 years in the insurance sector.
Rapid membership growth occurred after the Financial Service Providers (Registration and Dispute Resolution) Act in 2008 required all financial service providers in New Zealand to join an approved scheme.
…The scheme expanded its membership to include financial advisers and other financial service providers, reaching 4,386 participants by 2014…
“The IFSO Scheme expanded its membership to include financial advisers and other financial service providers, reaching 4,386 participants by 2014. Insurance, however, is still the main source of complaints.”
The Scheme notes too that the monetary limit for complaints has also increased steadily from $100,000 in 1995, to $500,000 introduced by regulation in 2024.
“This has allowed more complex, higher‑value complaints to be resolved free of charge for consumers.”
The service sees itself as being a critical backstop in times of pressure. Cases spiked 45% in 2023, following the Auckland Anniversary floods and Cyclone Gabrielle, with delays and customer service the most common concerns raised.
Similarly, after the Christchurch earthquakes in 2010 and 2011, the Scheme managed a surge in complaints as thousands of affected residents wanted help resolving insurance disputes. The Christchurch earthquake complaints continued until about 2020.
In 2024-25, the Scheme accepted a record number of 600 disputes for investigation, with a total of 4,306 cases (see: Insurance Disputes Hit Another Record High).
“Almost all (96%) of the disputes were about insurance. House insurance continues to be the top area for complaints (24% of all disputes), followed by motor vehicle insurance (19%) and travel insurance (18%).”
The IFSO Scheme will celebrate it’s 30-year anniversary at its annual conference on September 2 in Auckland.