28 August 2025
The Insurance & Financial Services Ombudsman Scheme (IFSO Scheme) is celebrating 30 years of service to consumers and small businesses in New Zealand since 1995.
Karen Stevens has been the Insurance & Financial Services Ombudsman since 1998, following the inaugural Insurance & Savings Ombudsman, Terry Weir. Stevens says the IFSO Scheme's purpose has remained the same since the early days.
“Our purpose hasn’t changed in 3 decades — to provide a dispute resolution service that is independent, fair, and accessible, and free for consumers,” she says.
Launched in 1995, the then Insurance & Savings Ombudsman Scheme began with 62 Insurer Participants which voluntarily joined the Scheme to provide a dispute resolution service for their customers. Most of those insurers are still part of the IFSO Scheme, although there have been many changes over those 30 years in the insurance sector in New Zealand.
Rapid membership growth occurred after the Financial Service Providers (Registration and Dispute Resolution) Act in 2008 required all financial service providers in New Zealand to join an approved scheme. The IFSO Scheme expanded its membership to include financial advisers and other financial service providers, reaching 4,386 Participants by 2014. Insurance, however, is still the main source of complaints to the IFSO Scheme.
The IFSO Scheme’s monetary limit for complaints has also increased steadily from its inception, from $100,000 in 1995, to $500,000 introduced by regulation in 2024. This has allowed more complex, higher‑value complaints to be resolved free of charge for consumers.
The service has been a critical backstop in times of pressure. Cases spiked 45% in 2023, following the Auckland Anniversary floods and Cyclone Gabrielle, with delays and customer service the most common concerns raised by consumers. Similarly, after the Christchurch earthquakes in 2010 and 2011, the IFSO Scheme managed a surge in complaints as thousands of affected residents turned to the IFSO for help resolving insurance disputes. The Christchurch earthquake complaints continued until about 2020.
In 2024-25, the IFSO Scheme accepted a record number of 600 disputes for investigation, with a total of 4,306 cases. Almost all (96%) of the disputes were about insurance. House insurance continues to be the top area for complaints (24% of all disputes), followed by motor vehicle insurance (19%) and travel insurance (18%).
The IFSO Scheme will celebrate it’s 30-year anniversary at its upcoming annual conference on 2 September in Auckland.
Stevens says the anniversary is an opportunity to reflect on the service the IFSO Scheme has provided through the 86,328 cases it has received over the 30 years.
“After 30 years in business, we have an established reputation, we have staff with a great deal of practical experience resolving complaints, and we understand the needs of our Participants and their customers when a complaint is made to us,” she says.
“I’m incredibly proud of the positive difference the IFSO Scheme has made in New Zealanders’ lives. For 86,328 consumers, we have made a difference, where they would otherwise have had to go to court or give up on having any resolution. Every case, every complaint and dispute resolved, is a reminder of why independent and accessible dispute resolution matters for New Zealanders. The IFSO Scheme has been here through good times and bad, providing a free service to those consumers who have needed it,” she says.
ENDS
Media contact
Sarah Smythe
IFSO Scheme Communications Manager
sarah@ifso.nz
021 292 4036