The New Zealand Insurance and Savings Ombudsman Scheme

Abstract

In January 1995, the New Zealand insurance industry embarked on a programme of self-regulation. At the centre of this programme is the Insurance and Savings Ombudsman Scheme ('ISO Scheme'), which is intended to provide an independent dispute resolution service for non-commercial insureds. This article discusses the ISO Scheme's development process, how the ISO Scheme measures up, and whether ISO Scheme's complaints handling be rated. The author concludes that, while the ISO Scheme appears to be a step in the right direction, there are questions to be resolved about accessibility, the adequacy of public information, and the degree of actual independence achieved by the Scheme. The real benefit to the insurance and savings industry must come from encouraging use of the ISO Scheme by complainants, and for this to happen the Scheme will have to establish a reputation for independence, flexibility and effectiveness.