Whānau Urged to Review Insurance Policies as Ombudsman Reports Record Rise in Resolved Disputes

Aotearoa whānau are being encouraged to take a closer look at their insurance coverage as new data reveals a record-breaking year for the resolution of financial disputes. According to the Insurance & Financial Services Ombudsman (IFSO) Scheme, there has been an unprecedented surge in New Zealanders challenging financial decisions, driven largely by ongoing economic pressures on households. In the year ending 30 June 2026, the IFSO Scheme handled a total of 3,977 cases. This workload included 2,602 complaints and a record 833 formal dispute investigations—a 46 percent increase compared to the previous year. Insurance & Financial Services Ombudsman Karen Stevens noted that disputes have risen by nearly 190 percent over the past five years. Despite the significant volume of work, the Scheme reported positive outcomes for many consumers, with more than $1.39 million in payments recorded during the period. Insurance remained the primary focus of the IFSO Scheme's work, representing more than 92 percent of investigations. For the first time, health insurance emerged as the largest category for disputes, followed by travel insurance, which saw a 32 percent increase. Stevens highlighted that financial pressures and consumer expectations regarding expensive policies are key drivers behind these figures. The Ombudsman also noted a rise in the use of artificial intelligence by consumers to draft complaints, though she cautioned that AI can sometimes misinterpret specific policy wording. The IFSO Scheme maintains a focus on efficiency, completing disputes in an average of 46 days. The findings serve as a reminder for whānau to ensure they fully understand their policy exclusions and benefit eligibility before a claim is necessary. By staying informed about their rights and the details of their financial agreements, consumers can better navigate the current cost-of-living challenges.