Public confidence in insurers providing appropriate advice and products is under threat, New Zealand Finance Minister Grant Robertson warned today.

Mr Robertson, who is also Minister Responsible for the Earthquake Commission, was speaking at the Insurance Council of New Zealand Conference in Auckland.

“Insurers need to make sure they are demonstrating they are working for the interests of their customers,” he said.

Mr Robertson says he is "concerned there is more granular risk-based pricing being carried out now”.

He says this is reducing the effectiveness of insurance and there are three areas the industry should address to restore confidence. It should ensure property insurance is affordable and easily available, gather good information to help consumers, and make sure it is signalling appropriate messages to consumers.

Governor of the Reserve Bank of New Zealand Adrian Orr, also speaking at the conference, put the industry “on notice” that the regulator will seek more detailed information on risk-based pricing. He also warned that the outcomes of the review of the Insurance Act next year will be “far more intrusive” for industry.

“The public is demanding insurers and regulators and the industry work together to provide sound and trusted outcomes and provide greater confidence in the sector.”

Mr Orr says the industry needs to invest in its business to ensure it “has the ability to prove outcomes are right for the customers".