FMA report slams insurers
The Financial Markets Authority (FMA) released its Insurance conduct and culture: Fire and general insurers report this morning stating that general insurers "...broadly have a poor understanding of, and commitment to, good conduct and culture practice".
The report summarises responses to the FMA's Life Insurer Conduct and Culture review undertaken by the FMA and the Reserve Bank of New Zealand in 2019 but did not include the life insurance sector.
The FMA says it requested insurers’ responses in December 2020, around 18 months after its initial request, due to the impact of Covid-19 but in most cases the responses were poor and inadequate with only two out of 42 insurers – IAG and Medical Assurance Society - meeting expectations.
Fire and general insurers – classified as providing house, contents, vehicle, commercial, liability, travel and health insurance - were asked to review their operations to make sure there were no material conduct issues and to demonstrate good conduct in their dealings with consumers.
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