New FMA report warns of customer protection gaps

The FMA has released its latest Financial Conduct Report, revealing issues with fraud, fee transparency and product design across financial services

The Financial Markets Authority (FMA) has identified weaknesses in how New Zealand's insurance sector protects consumers, with regulators warning of "gaps" that leave customers vulnerable.

Despite recent licensing reforms, the FMA's latest Financial Conduct Report has revealed ongoing issues with product design, fee transparency, and customer service delivery across the financial services industry. The FMA found that while some good practices are emerging, "gaps remain, and further improvements can be made to prevent harm occurring.”

The concerns are particularly acute given that 86% of New Zealanders hold at least one insurance product.