Insurance disputes reach record high

The (IFSO) is seeing record numbers of insurance disputes. It accepted 600 cases for investigation in the year from 1 July 2024 to 30 June 2025 - a 25% jump that insurance ombudsman Karen Stevens says reflects growing consumer frustration.

The spike from just 285 disputes in 2022 to 600 in 2025 suggests New Zealanders are increasingly willing to challenge their insurers when claims go wrong. Stevens says cost-of-living pressures and rising premium expectations are likely drivers.

"We're seeing more complaints that remain unresolved even after going through providers' internal processes," Stevens says. "When premiums have gone up, consumers expect their policies to deliver."

House insurance tops the complaint list at 24% of all disputes, followed by motor vehicle (19%) and travel insurance (18%). General insurance accounts for 67% of disputes, while life and health insurance makes up 29%.

The surge in disputes comes as the IFSO Scheme received 4,293 total enquiries and complaints across insurance and financial services, with many resolved quickly by frontline staff before escalating to formal investigations.