Insurance companies have improved their processes since the Canterbury earthquakes, but more improvements are needed, according to a new report by New Zealand's insurance regulator, the Financial Markets Authority (FMA) - Te Mana Tatai Hokohoko.
The report was released following a review of insurers’ claims processes, which are crucial to good consumer experience, and looked into the insurance sector’s response to the Auckland Anniversary Weekend flooding and cyclone Gabrielle.
Based on feedback from insurers, brokers and dispute resolution schemes, the FMA recommended six areas for improvement; communications, project management and oversight, identifying and treatment of customers in vulnerable circumstances, resourcing, complaints handling and business continuity.
FMA head of insurance Jane Brown acknowledged the comprehensive and immediate response to the events by insurers and brokers, and commended them on their huge efforts to assist their customers in unprecedented circumstances.
“The Auckland Anniversary Weekend Floods and cyclone Gabrielle were the largest weather events to impact the country since cyclone Giselle in 1968, resulting in 118,000 insurance claims and close to NZD$4bn ($2.4bn) in damage to insured property,” said Ms Brown.
“It is clear that the sector rose to meet an overwhelming challenge using learnings from the earthquakes, and has done further work to improve. Following the events, however, we also became aware of consumer concerns relating to delays, complaints and the experience of the insurance claims process generally.”
Calling the significant insurance event a matter of “when”, rather than “if”, she emphasises that it was important that “insurers take the time to review and tailor their claims processes to ensure that consumers’ expectations and needs are being met”.
“With New Zealanders facing increasing risks around extreme weather events, maintaining confidence in the insurance sector is more important now than ever,” she said.
“While we acknowledge all the work done by insurers to improve the consumer experience since the Canterbury earthquakes, and again since the North Island weather events, we still see areas where improvements can be made. We look forward to working collaboratively with the fire and general insurance sector to support further conduct improvement.”