The IFSO Scheme provides a free resolution service to consumers who have complaints about their insurers and financial service providers. The Scheme received a record 569 enquiries in May, with March and April also reaching record numbers.

Delays and customer service problems are currently the most frequent issues customers are contacting the IFSO Scheme about, making up 35% of enquiries received since February.

The IFSO Ombudsman Karen Stevens says insurance delays can be very frustrating.

“For people whose houses have been made uninhabitable or who have had major damage to their vehicle or contents, delays can be immensely stressful and upsetting. With temporary accommodation allowances due to run out for many people too, it’s a very difficult situation for those affected. Insurers can move forward with some claims now that the government has designated categories for affected homes, however these will still take some time to work through, especially complex cases.”

While many enquiries concern insurance claims from the Auckland floods and Cyclone Gabrielle, customers who have claims unrelated to these events are also being impacted by the volume of work insurers are experiencing. The IFSO Scheme understands insurers are prioritising claims, and that may mean an unrelated claim cannot be dealt with as quickly as it usually would be.

While there is an allowance in the Fair Insurance Code for delays due to catastrophes or disasters, Stevens says there are a few things that people can still expect from their insurers.

“Insurers have a responsibility to update customers every 20 business days, or at another agreed time interval, until their claim is resolved. And if there are vulnerable circumstances that need to be considered, insurers should be identifying and responding to customers on this basis.”

Some insurers have different teams in place to deal with cyclone-related claims and general claims, to allow faster processing. The government has also set up the New Zealand Claims Resolution Service, providing homeowners with free and independent insurance-related advice, including help with making claims.

Stevens recommends that customers experiencing delays keep communicating with their insurers.

“Customers should contact their insurers online or via email, to avoid busy phone lines. They should also inform their insurer if they have vulnerable circumstances that need to be considered. If customers are not satisfied with the response they get, they can get in touch with the IFSO Scheme by visiting www.ifso.nz or by calling 0800 888 202.”