New Zealand Financial Markets Authority publishes weather-events claims insights and flags improvements needed in insurers’ major-event claims handling

The New Zealand Financial Markets Authority (FMA) published its Weather Events Claims Insights report reviewing how seven fire and general insurers handled claims following the 2023 Auckland Anniversary Weekend Floods and Cyclone Gabrielle, finding that insurers have improved their processes but that further changes are needed to ensure consumers are treated fairly during major events. The two events, occurring 16 days apart, generated 118,000 insurance claims and close to $4 billion of damage to insured property, with consumer concerns emerging around delays, complaints and overall claims experience. The FMA’s review was based on a self-reflection survey covering six areas it considers central to best-practice claims settlement: communication, project management and oversight, consumers in vulnerable circumstances, resourcing of claims handling, complaints handling, and business continuity planning. The findings will inform supervisory workplans for general insurers, and the FMA signalled it will focus on the identified areas as it begins supervisory activities under the Conduct of Financial Institutions regime, including product and service reviews, complaints awareness and communications with consumers.