The Insurance Council of New Zealand Te Kāhui Inihua o Aotearoa (ICNZ) has welcomed the first reading of the Contracts of Insurance Bill, saying the overhaul of the legislation is well overdue.

“This Bill has been long awaited and I congratulate the Minister of Commerce and Consumer Affairs, Andrew Bayly, for his support and commitment to modernise New Zealand’s insurance law and bring it in line with international best practice,” ICNZ chief executive Kris Faafoi said.

“The current legislation is widely acknowledged to be outdated, unwieldy and not fit for purpose in today’s world. The new Bill will help tidy up, rationalise and update New Zealand’s insurance law into a single framework to support well-functioning insurance markets for both insurers and consumers.

“We acknowledge there’s still a lot to do as we work through the details of the Bill and ensure a balanced approach is achieved that strengthens protections for consumers while promoting fairness, certainty and sustainability in the insurance sector.

“Given the sheer scale of the reforms, it’s also important that sufficient time is allowed for the industry to implement and bed in the changes once they are known. We are pleased to see that the Minister has allowed up to three years.

“The sector will work closely with the Government and regulators to ensure that the Bill and other regulatory reforms that the industry is facing are done in a co-ordinated way that benefit both consumers and the industry as a whole.

“We look forward to the opportunity to make submissions on the Bill and ensure that there is clarity and certainty for all parties in the long term. A solid and sound insurance market is essential to New Zealand’s financial and economic wellbeing,” Kris Faafoi said.