New Zealand Financial Markets Authority publishes Weather Events Claims Insights report highlighting gaps in insurers’ extreme event claims processes

The New Zealand Financial Markets Authority has published a Weather Events Claims Insights report reviewing how fire and general insurers handled claims following the 2023 Auckland Anniversary Weekend Floods and Cyclone Gabrielle, concluding that insurers have strengthened their processes but further improvements are needed to ensure consumers are treated fairly during major events. The review drew on a self-reflection survey completed by seven insurers and assessed six areas the FMA views as central to good claims settlement practice: communication, project management and oversight, treatment of consumers in vulnerable circumstances, resourcing of claims handling, complaints handling, and business continuity planning. The work follows events that generated 118,000 insurance claims and close to NZD 4 billion in insured property damage, alongside consumer concerns about delays, complaints, and overall claims experience. The FMA indicated it will use the findings to inform supervision of general insurers and highlighted areas of intended focus as it begins supervisory activities under the Conduct of Financial Institutions regime, including product and service reviews, complaints awareness, and communications with consumers.