Insurance contract law review

We are reviewing New Zealand's insurance contract law to ensure it is facilitating well-functioning insurance markets.

The purpose of the review

The review's purpose is to ensure New Zealand’s insurance contract law is facilitating insurance markets that work well and enable individuals and businesses to effectively protect themselves against risk.

Insurance plays an important role in the lives of New Zealanders, helping them cope with unforeseen life events and providing business with greater certainty. A well-functioning insurance system is integral to ensuring insurance continues to serve all New Zealanders.

Effective regulation of insurance contracts is important so that consumers, businesses and insurers can transact with confidence in a fair, efficient and transparent way.

Exposure draft Bill consultation

We consulted on a draft Insurance Contracts Bill that reforms and updates New Zealand’s insurance contract law between 24 February 2022 and 4 May 2022. This consultation sought feedback on whether the drafting achieves the policy intent or could have any unintended consequences.

Read about the consultation on the exposure draft Insurance Contracts Bill

We are currently considering the issues raised in submissions on the draft Bill and working on changes to the draft Bill before it is introduced to Parliament.

Policy decisions

In November 2019 the Government agreed to reform insurance contract law, including:

  • Placing the responsibility on insurers to ask consumers the right questions when processing new insurance policies, rather than leaving it to consumers to know what to tell their insurer.
  • Requiring insurance policies to be written and presented clearly, so that consumers can easily understand them.
  • Ensuring insurers respond proportionately when consumers don’t disclose something they should have, or misrepresent themselves.
  • Strengthening protections for consumers against unfair terms in insurance contracts.
  • Extending powers to the Financial Markets Authority to monitor and enforce compliance with new requirements.

Previous consultation

The Minister of Commerce and Consumer Affairs previously released an issues paper and options paper for public consultation.

Issues paper consultation

Options paper consultation

Feedback welcome

In addition to the formal consultation process, we welcome feedback at any time about the review. If you would like to contact us, please email

Financial institutions conduct review

You may also be interested in the financial institutions conduct review which is currently underway.

Find out more

Last updated: 10 January 2023