ICNZ welcomes modernisation of insurance with new bill

ICNZ welcomes modernisation of insurance with new bill | Insurance Business New Zealand

Insurance News

ICNZ welcomes modernisation of insurance with new bill

Public submissions on the bill needed

Insurance News

By
Roxanne Libatique

The Insurance Council of New Zealand Te Kāhui Inihua o Aotearoa (ICNZ) has backed the first reading of the Contracts of Insurance Bill, emphasising that a revamp of this magnitude was much needed.

ICNZ chief executive Kris Faafoi expressed his approval of the legislative progress, saying that a revamp of this magnitude is much needed.

“This bill has been long awaited, and I congratulate the Minister of Commerce and Consumer Affairs, Andrew Bayly, for his support and commitment to modernise New Zealand’s insurance law and bring it in line with international best practice,” he said.

ICNZ’s insights on current insurance laws

Faafoi critiqued the current legislation as being obsolete and ineffective for contemporary requirements.

“The current legislation is widely acknowledged to be outdated, unwieldy, and not fit-for-purpose in today’s world,” he said.

“We acknowledge there’s still a lot to do as we work through the details of the bill and ensure a balanced approach is achieved that strengthens protections for consumers while promoting fairness, certainty, and sustainability in the insurance sector,” Faafoi said. “Given the sheer scale of the reforms, it’s also important that sufficient time is allowed for the industry to implement and bed in the changes once they are known. We are pleased to see that the minister has allowed up to three years.”

ICNZ works with government to improve Contracts of Insurance Bill

The ICNZ, which also recently welcomed calls for improving the understanding of natural hazard risks in New Zealand, plans to work in tandem with governmental and regulatory entities to ensure that the bill, along with upcoming regulatory changes, is implemented in a way that advantages both consumers and the broader industry.

“We look forward to the opportunity to make submissions on the bill and ensure that there is clarity and certainty for all parties in the long term. A solid and sound insurance market is essential to New Zealand’s financial and economic wellbeing,” Faafoi said.