New Zealand insurers handle claims under two layers. The CoFI regime, in force since 31 March 2025, requires licensed insurers to treat customers fairly, overseen by the FMA. The Fair Insurance Code sets the timeframes. Insurers acknowledge within 5 business days, decide within 10 business days of having everything, and update at least every 20 business days.
This article is general information, not legal or compliance advice. Check the current text of the code, standard or legislation, and take advice for your situation.
Key takeaways
- CoFI, the Conduct of Financial Institutions regime, took full effect on 31 March 2025.
- According to MinterEllison, CoFI requires each financial institution to maintain a fair conduct programme designed to ensure it complies with the fair conduct principle.
- According to the IFSO Scheme, the Fair Insurance Code applies to all insurance products except life and health policies.
- The Code gives insurers 5 business days to acknowledge a claim and 10 business days to decide once they have everything.
- Insurance complaints that are not resolved by the insurer can go to the IFSO Scheme, which has resolved them since 1995.
What is CoFI?
CoFI is the Conduct of Financial Institutions regime, introduced by the Financial Markets (Conduct of Institutions) Amendment Act 2022. Since 31 March 2025, registered banks, licensed insurers and licensed non-bank deposit takers have needed a CoFI licence from the FMA. Each must treat customers fairly and run a fair conduct programme to make sure it does.
The core idea is the fair conduct principle. According to MinterEllison, "Fundamentally, CoFI is about treating customers fairly." Claims are where customers test that principle most directly.
The regime expands the FMA's role. According to MinterEllison, CoFI gives the FMA new responsibilities for licensing, monitoring and enforcement of financial institutions. A Financial Markets Conduct Amendment Bill, introduced as CoFI began, proposed simplifying the fair conduct programme requirements, so check its current status.
What is the Fair Insurance Code?
The Fair Insurance Code is the Insurance Council of New Zealand's industry code for its member insurers. It sets out how insurers will deal with customers, including timeframes for handling claims, both in normal times and after natural disasters. It applies to all insurance products except life and health policies.
The Code is narrower than CoFI but more specific. CoFI states a principle; the Code sets numbers. As a result, an insurer's fair conduct programme often draws on the Code's timeframes as concrete standards.
The IFSO Scheme describes its scope plainly. According to IFSO, the Code "sets out how house, contents and car insurers will engage with customers to settle claims". That covers normal times and natural disasters. The Code also recognises that standard timeframes may not be met after a catastrophe.
What are the claims obligations under each?
CoFI sets the principle: claims must be handled in a way that treats customers fairly, under the insurer's fair conduct programme. The Fair Insurance Code sets the timeframes. Insurers acknowledge a claim within 5 business days and decide within 10 business days of having all the information. When a decision takes longer, they update at least every 20 business days.
- Treat customers fairly. Timeframe or requirement: Fair conduct principle, through a fair conduct programme; Source: CoFI.
- Acknowledge the claim. Timeframe or requirement: Within 5 business days; Source: Fair Insurance Code.
- Decide whether to accept the claim. Timeframe or requirement: Within 10 business days of having all the information needed; Source: Fair Insurance Code.
- If the decision will take longer. Timeframe or requirement: Say how long it is expected to take; Source: Fair Insurance Code.
- Update the customer. Timeframe or requirement: At least every 20 business days, or another agreed interval, until resolved; Source: Fair Insurance Code.
- After a catastrophe. Timeframe or requirement: Respond as quickly as possible, keep the 20 business day updates, and respond to vulnerability; Source: Fair Insurance Code.
The 20 business day update holds even after a disaster. According to the IFSO Scheme, insurers "still had a responsibility to update customers every 20 business days" after the 2023 Auckland Floods and Cyclone Gabrielle.
Meeting these deadlines depends on a clear record of when each started. ClaimsGateway (claimsgateway.com) keeps audit logs of system and user activity, and its security and compliance page describes its approach.
Where do New Zealand insurance disputes go?
An insurance dispute starts with the insurer's own complaints process. If the customer is unhappy with the response, they can go to the IFSO Scheme free of charge. IFSO is the Insurance and Financial Services Ombudsman Scheme. New Zealand has other approved dispute resolution schemes for financial services too.
The IFSO Scheme has resolved insurance and financial services complaints since 1995. Its participants include insurers, KiwiSaver and superannuation providers, credit providers and financial advice providers.
Delay is a common theme. According to the IFSO Scheme, it received a sharp increase in complaints about delays after the Auckland Floods and Cyclone Gabrielle. In one case it described, an insurer had "significantly breached the Code" through delays and poor follow-up, and apologised and paid the customer.
Frequently asked questions
What is CoFI in New Zealand?
CoFI is the Conduct of Financial Institutions regime, in force since 31 March 2025. It requires registered banks, licensed insurers and licensed non-bank deposit takers to hold a licence from the FMA, treat customers fairly, and maintain a fair conduct programme designed to make sure they do.
What does the Fair Insurance Code say about claims?
The Fair Insurance Code says insurers will acknowledge a claim within 5 business days and decide within 10 business days of having all the information they need. If that cannot be met, they will say how long it will take and update the customer at least every 20 business days.
Who enforces CoFI?
The Financial Markets Authority (FMA) licenses, monitors and enforces the CoFI regime. CoFI expanded the FMA's role as a conduct regulator to cover banks, insurers and non-bank deposit takers. The Fair Insurance Code, by contrast, is an industry code published by the Insurance Council of New Zealand for its members.
How long does an NZ insurer have to settle a claim?
The Fair Insurance Code does not set one settlement deadline. It says the insurer will decide whether to accept a claim within 10 business days of having all the information it needs. Complex claims can take longer, with updates at least every 20 business days until the claim is resolved.
Where do NZ insurance disputes go?
First to the insurer's own complaints process. If the customer is unhappy with the response, they can take the complaint to the IFSO Scheme, which investigates insurance complaints free of charge. Other approved dispute resolution schemes cover some financial service providers, so check which scheme the insurer belongs to.
About the author
ClaimsGateway builds cloud claims management software for insurers, underwriting agencies, brokers, TPAs and self-insured organisations in Australia and New Zealand. Every regulator figure in this article links to its source, and every vendor fact was checked on the vendor's own site on the date shown.
Related reading
- Claims software in New Zealand: the platforms New Zealand claims teams use.
- Code of Practice claims rules: the Australian equivalent.
- ACC accredited employers: managing work injury claims in New Zealand.
Sources
- MinterEllison Ruddwatts. "CoFI regime begins." April 2025. https://www.minterellison.co.nz/insights/cofi-regime-begins
- IFSO Scheme. "Claim settlement delays." Checked 24 October 2026. https://www.ifso.nz/pages/claim-settlement-delays
- Financial Markets Authority. "CoFI regime in effect." 31 March 2025. https://www.fma.govt.nz/news/all-releases/media-releases/cofi-regime-in-effect (read through search results)
- Insurance Council of New Zealand. Fair Insurance Code. https://www.icnz.org.nz
