New Zealand supports comprehensive reform of insurance legislation

The ICNZ also pledges to collaborate with the government and regulators.

The Insurance Council of New Zealand Te Kāhui Inihua o Aotearoa (ICNZ) has applauded the introduction of the Contracts of Insurance Bill, stating that the overhaul of the legislation is long overdue.

ICNZ's chief executive, Kris Faafoi, commended Minister of Commerce and Consumer Affairs, Andrew Bayly, for his commitment to modernise New Zealand's insurance law, aligning it with international best practices.

Faafoi emphasised that the current legislation is outdated and not suited to today's needs, while the new bill will streamline and update insurance law into a single framework, benefiting both insurers and consumers.

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Acknowledging the complexity of the reforms, Faafoi stressed the importance of a balanced approach to strengthen consumer protections whilst ensuring fairness, certainty, and sustainability in the insurance sector. 

The industry welcomes the three-year implementation timeline proposed by the Minister.

ICNZ pledges to collaborate with the government and regulators to ensure coordinated and beneficial regulatory reforms for both consumers and the industry. 

They also anticipate the opportunity to provide input on the bill to ensure clarity and certainty for all parties in the long term, emphasising the critical role of a robust insurance market in New Zealand's financial and economic well-being.