{"id":131798,"date":"2026-03-06T13:46:11","date_gmt":"2026-03-06T13:46:11","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=131798"},"modified":"2026-03-06T13:46:11","modified_gmt":"2026-03-06T13:46:11","slug":"new-zealand-insurance-disputes","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/new-zealand-insurance-disputes\/","title":{"rendered":"New Zealand: Insurance Disputes"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-131798","comparative_guide","type-comparative_guide","status-publish","hentry","guides-insurance-disputes","jurisdictions-new-zealand"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Bell Gully<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/06\/Bell-Gully-logo.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Bell Gully<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2025\/06\/Bell-Gully-logo.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Insurance Disputes laws and regulations applicable in New Zealand<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What mechanism do insurance policies usually provide for resolution of disputes between the insurer and policyholder?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The default mechanism for dispute resolution is proceedings in either a specialist tribunal (for earthquake insurance claims) or the courts.<\/p>\n<p>Mediation and arbitration clauses are relatively common in reinsurance and large commercial placements. However, arbitration clauses in consumer insurance policies are not binding on the insured. Rather, insurers are required to participate in a free dispute resolution scheme, such as the Insurance &amp; Financial Services Ombudsman Scheme, which has jurisdiction over disputes up to $500,000, and can determine a dispute based on what is fair and reasonable, rather than through a strict application of the law. A decision of such a scheme is only binding on the insurer if the insured agrees with the decision.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a protocol governing pre-action conduct for insurance disputes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>No. However, the courts generally expect parties to engage with one another and seek to resolve disputes prior to filing proceedings.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are local courts adept at handling complex insurance disputes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. The New Zealand courts have extensive experience with complex insurance disputes, including those giving rise to coverage, causation, and quantum issues.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is alternative dispute resolution mandatory?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, in some cases. Insurers are required by statute to participate in dispute resolution schemes for disputes under consumer policies, as noted above. Also, where a valid arbitration clause applies, courts will stay proceedings in favour of arbitration. In other cases, alternative dispute resolution is not mandatory but it is encouraged.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are successful policyholders entitled to recover costs of insurance disputes from insurers?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. In court proceedings, costs are in the discretion of the judge but they usually follow the event; an unsuccessful party will be required to pay some of the successful party\u2019s costs as well as their own. The payable costs are assessed on a scale by reference to complexity and reasonable steps, which means that, in practice, only a relatively small percentage of actual costs are usually recovered. Increased or indemnity costs may be awarded for misconduct or where a contractual indemnity applies. Expert and other reasonable disbursements are commonly allowed. Ombudsman schemes and tribunals generally do not award legal costs.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there an appeal process for court decisions and arbitral awards?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Decisions of a first instance court are appealable as of right. Further appeals require leave to be granted. Arbitral awards can be appealed to the High Court on questions of law if the parties have agreed to allow for appeals, or if the High Court grants leave.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How much information is the policyholder required to disclose to the insurer? Does the duty of disclosure end at inception of the policy?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Currently, policyholders have a duty at common law to disclose all information that would influence the judgment of a prudent insurer in determining whether to take the risk and, if so, on what terms.<\/p>\n<p>The common law duty will be replaced by the Contracts of Insurance Act 2025 (COIA), which comes into force in November 2027:<\/p>\n<ul>\n<li>Consumers will be required to take reasonable care not to make a misrepresentation.<\/li>\n<li>Non\u2011consumer insureds will be required to make a fair presentation of the risk. This includes disclosure of every material circumstance that they know or ought to know, or else sufficient information to put a prudent insurer on notice that it needs to make further enquiries.<\/li>\n<\/ul>\n<p>The duty of disclosure comes to an end when the contract of insurance is incepted unless express policy terms impose a continuing duty. However, the duty of disclosure recurs at renewal and on variation of the policy.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What remedies are available for breach of the duty of disclosure, and is the policyholder\u2019s state of mind at the time of providing the information relevant?\u202f\u202f\u202f\u202f\u202f\u202f<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Currently, at law, the availability of remedies depends on whether the insured has failed to disclose material information, or provided incorrect information:<\/p>\n<ul>\n<li>Insurers can decline claims and avoid the contract if a policyholder does not disclose all relevant information. The policyholder\u2019s state of mind is not relevant.<\/li>\n<li>If the insured provides information that is incorrect (in contrast to failing to provide information), then the insurer can only avoid the policy if the misstatement is substantially incorrect and material. If the policy is a life insurance policy, there is also a requirement that the misstatement was made fraudulently or within 3 years of the date of avoidance or the death of the insured.<\/li>\n<\/ul>\n<p>However, in practice, the insurance policy will usually place limitations on the right to avoid the policy so that the right only arises in the case of a serious breach.<\/p>\n<p>The position will be different when COIA comes into force in November 2027, and the policyholder\u2019s statement of mind will be central to the available remedy. If a misrepresentation or non\u2011disclosure was deliberate or reckless and induced entry into the contract, the insurer may avoid the contract and keep the premium. However, for careless or inadvertent breaches, the remedy will reflect what the insurer would have done had it known the truth. If the insurer would still have entered into the policy but on different terms, then the insurer can elect to apply those terms. Also, if the premium would have been higher, then the insurer can charge a higher premium for the remainder of the term, and also proportionately reduce payment of claims by reference to the percentage by which the premium would have been higher.<\/p>\n<p>There will also be a similar three year limitation period for avoidance of a life policy.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are certain types of provisions prohibited in insurance contracts?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. As noted above, arbitration clauses are not enforceable in consumer policies. Home insurance policies are also prohibited from including pro rata conditions of average.<\/p>\n<p>Clauses contrary to public policy (such as insurance covering criminal fines) or mandatory law will not be enforced.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent is a duty of utmost good faith implied in insurance contracts?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>A duty of utmost good faith is implied in insurance contracts but the precise scope of the duty is not settled. While it is clear that it underpins the insured\u2019s duty of disclosure, it has also been said to give rise to obligations on an insurer to (for example) act reasonably during claims handling.<\/p>\n<p>COIA confirms that the duty exists but, save for modifying the duty in relation to disclosure, does not provide further detail of what it entails.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do other implied terms arise in consumer insurance contracts?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, further terms may be implied depending on the type of consumer insurance contract and subject to its express terms. For example, a term might be implied in an income protection policy to the effect that an insurer must have due regard to the interests of the insured when determining whether the insured has suffered a total disability.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there limitations on insurers\u2019 right to rely on defences in certain types of compulsory insurance, where the policy is designed to respond to claims by third parties?\u202f\u202f<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Third-party insurance is not compulsory in New Zealand. New Zealand has a statutory, no fault accident compensation scheme that removes the right to sue for compensation for personal injury.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the usual trigger for cover under insurance policies covering first party losses, or liability claims? Are there limitation periods for the commencement of an action against the insurer?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>First\u2011party policies are usually triggered by an occurrence causing physical loss or damage during the policy period.<\/p>\n<p>Liability policies are usually triggered by a liability being established by an arbitral award, court judgment, or by a settlement with the third party claimant. That said, defence costs cover will usually provide for defence costs to be indemnified when incurred in response to a claim that would satisfy the insuring clause if it were successful.<\/p>\n<p>A general six year limitation period applies, running from the date of the act or omission on which the claim against the insurer is based. The relevant act or omission depends on the wording of the insurance policy, but it has been held that time does not necessarily start to run under a property insurance contract when the damage occurs.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Which types of loss are typically excluded in insurance contracts?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>It depends on the type of policy. Common exclusions under liability policies include fines and penalties, deliberate or fraudulent acts. Common exclusions under property policies include wear and tear, gradual deterioration, consequential loss, and war or terrorism risks.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Do the courts typically construe ambiguity in policy wordings in favour of the insured?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, where there is genuine ambiguity in policy wording, the court may construe the policy against the party who has drafted it (which will usually be the insurer).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does a \u2018but for\u2019 or \u2018proximate\u2019 test of causation apply, and how is this applied in wide-area damage scenarios?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The proximate cause test will usually apply, but this is subject to whether the policy wording provides otherwise. \u2018Proximate cause\u2019 means the dominant, direct, effective or operative cause, whether or not this is the last in time. \u2018But for\u2019 causation is often applied as a threshold test of factual causation, although this is not always necessary or sufficient.<\/p>\n<p>There is no general rule as to how the test should be applied in the case of widespread damage arising from a single event.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is the legal position if loss results from multiple causes?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Multiple causes will usually only be relevant if they are all proximate causes. In general, if the loss is caused concurrently by insured and uninsured perils, then the policy will respond. If the loss is caused concurrently by insured and excluded causes, then the exclusion prevails.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What remedies are available to insurers for breach of policy terms, including minor or unintentional breaches?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The orthodox remedies for breach of contract will apply, including compensatory damages for any loss.<\/p>\n<p>Otherwise, the remedies depend on the nature of the clause that has been breached, and whether there are any express remedies provided for in the policy. For example, breach of a condition precedent may entitle the insurer to decline cover. Breach of a time limit for notifying a claim will usually only be effective if the insurer can establish that it has been prejudiced by the breach and that it would be inequitable if the provision was not binding (unless it is a claims made policy).<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Where a policy provides cover for more than one insured party, does a breach of policy terms by one party invalidate cover for all the policyholders?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Where policyholders share a common interest in the insured subject matter (such as joint property owners), the conduct of one policyholder may invalidate cover for all.<\/p>\n<p>If the policy is a composite policy, which insures multiple parties for their separate interests in the insured subject matter, a breach by one policyholder does not usually affect the rights of other policyholders.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Where insurers decline cover for claims, are policyholders still required to comply with policy conditions?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>It will depend on the circumstances. If, for example, an insurer wrongly declines cover under a liability policy, there is authority that the insured is not then required to comply with conditions that require it to seek the insurer\u2019s consent to a settlement with a third party claimant.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is quantum assessed, once entitlement to recover under the policy is established?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>It depends on the nature and terms of the policy, which will usually provide for the basis of settlement. The overarching principle is one of indemnity, where an insured is generally not entitled to receive any more than their true loss.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Where a policy provides for reinstatement of damaged property, are pre-existing plans for a change of use relevant to calculation of the recoverable loss?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes, potentially. The insured may not be entitled to the costs of reinstatement if they do not have a genuine intention to reinstate, which could be proven by evidence showing the insured intended to change the use of the property.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">After paying claims, are insurers able to pursue subrogated recoveries against third parties responsible for the loss? How would any such recoveries be distributed as between the insurer and insured?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Generally, yes. After indemnifying the insured under an indemnity policy, the insurer can subrogate to the insured\u2019s rights against responsible third parties, subject to any waivers by the insurer or other contractual bars in the policy. Recovered sums are typically applied first to the insured\u2019s uninsured losses, with the balance reimbursing the insurer\u2019s outlay, unless the policy prescribes a different order. The insured is entitled to any surplus recovery as the insurer can only recover the amount it has paid to the insured.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a right to claim damages in the event of late payment by an insurer?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In principle, yes, if the late payment has caused loss to the insured.<\/p>\n<p>Section 66 of COIA implies a term into insurance contracts that the insurer must pay any sums due in respect of the claim within a reasonable time and provides that breach of that implied term may entitle the policyholder to damages (separately from and in addition to a right to enforce payment of the sums due and any right to interest). What is reasonable will depend on all the relevant circumstances, including the size and complexity of the claim and whether the insurer has reasonable grounds for disputing the claim.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Can claims be made against insurance policies taken out by companies which have since become insolvent?\u202f<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Yes. Section 9 of the Law Reform Act 1936 provides that a third party claimant can directly sue the insurer of an insolvent party, and they have a benefit of a charge on the money payable under the policy.<\/p>\n<p>The way the charge regime operates has been criticised, and it will be repealed and replaced by COIA. Under COIA, there will be a more detailed regime for third party claims against the policyholder\u2019s liability insurers in the event of the policyholder becoming subject to an insolvency procedure, though no charge will arise.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">To what extent are class action or group litigation options available to facilitate bulk insurance claims in the local courts?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Representative proceedings can be brought under the High Court Rules. They operate similarly to class actions, and allow a representative plaintiff to bring a claim, with the leave of the Court, on behalf of other parties with whom they have a common interest on an opt\u2011in or opt\u2011out basis. In order for there to be a representative action relating to policy entitlements, the representative plaintiff would need to demonstrate that one or more common issues arise amongst the class members.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the biggest challenges facing the insurance disputes sector currently in your region?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>New Zealand has suffered a number of natural catastrophes and weather-related events in recent years, and those events are expected to continue to occur. Insurers are reconsidering their risk appetites for certain geographic areas that are prone to suffer from such events, and in some cases have withdrawn from providing cover in those areas. Some insurers have also moved to a more risk-based, localised pricing model, causing premiums to rise in areas that had previously been subsidised by premiums from lower risk areas.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How do you envisage technology affecting insurance disputes in your jurisdiction in the next 5 years?\u202f\u202f<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Generative AI is increasingly being used by laypeople, insurers, and law firms to assist with claims correspondence and the management and resolution of disputes. It has the potential to introduce major efficiencies, but also to create major confusion (e.g., there have been numerous well-publicised instances of AI providing references to judgments that are either incorrect or non-existent). The New Zealand Supreme Court has issued a warning that incorrect AI use could, in serious cases, result in a finding of contempt of court.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the significant trends and developments in insurance disputes within your jurisdiction in recent years?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In addition to the changes wrought by natural catastrophes described above, the most significant development in recent years has been the introduction (but not yet the commencement) of COIA, which will result in fundamental changes to the duty of disclosure, as described above. Insurers are implementing change projects to ensure compliance when COIA comes into force.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Where in your opinion are the biggest growth areas within the insurance disputes sector? \u202f<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Natural catastrophe and climate\u2011related claims are likely to continue to have an outsized presence in the sector. Warranty &amp; indemnity insurance claims are also likely to increase as transaction activity increases, and cyber-attacks are becoming increasingly common in New Zealand, which incentivises companies to obtain cyber cover.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">2858<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/131798","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=131798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}