By Kajal Nair, RNZ
Dovedale flood damage. Photo: RNZ/Ellen O'Dwyer
Insurance disputes have surged to record levels, with a 25 percent increase in formal cases this year, the Ombudsman reports.
It has prompted the Insurance & Financial Services Ombudsman (IFSO) to issue fresh calls for insurers to do more to support vulnerable customers.
The IFSO scheme has accepted 600 cases for investigation so far this year.
Ombudsman Karen Stevens said while many complaints were resolved quickly, more were unresolved even after going through an insurers internal processes.
Stevens said many insurers were already making positive changes, particularly in the aftermath of last year's flooding, but warned the current economic climate meant vulnerability was becoming more widespread.
"Vulnerability isn't a label - it's a situation that can affect anyone.
"Insurers need to recognise when someone is struggling and respond with empathy, flexibility, and fairness," she said.
In response, the Insurance Council of New Zealand (ICNZ) said insurers took their responsibility to vulnerable customers seriously and have made significant changes to their processes following recent North Island weather events.
"Insurers changed their processes and approaches to better identify, prioritise, and support customers with significant vulnerabilities," a spokesperson said.
"This included strengthening claims systems, improving training, and assigning skilled handlers to the most vulnerable cases - including direct contact [owners] with red- and yellow-stickered homes."
The IFSO scheme encourages all insurers to improve communication by using plain language, offering extra time to customers in distress and providing access to support services such as interpreters and mental health resources.
It has also launched training tools, including a short course developed with Massey University, to help insurers better recognise and respond to signs of vulnerability.
