The New Zealand Government says regulation of insurer conduct will be considered in its review of the industry’s contract law.

It has released an issues paper for the review of laws that span six legislative acts and in some cases date back more than 100 years.

“The world has moved on and some parts of the law, such as the disclosure obligations consumers face, no longer strike the right balance,” Commerce and Consumer Affairs Minister Kris Faafoi said.

“Experiences following the Christchurch earthquakes – and more recently issues highlighted by the [Hayne] royal commission in Australia – have also highlighted the need to look at whether greater regulation of insurer conduct is required.”

The issues paper contains about 50 areas of discussion, and will be followed later this year by proposed options, with recommendations to be presented to the Government next March.

Mr Faafoi says the review complements the Government’s inquiry into the Earthquake Commission.

“The concurrent nature of the review and the inquiry will create an opportunity to share findings and make sure everyone is able to have their earthquake-related insurance experiences heard,” he said.

Issues in the paper include claims handling, fair treatment, evidence of mis-selling unsuitable products, and obligations and remedies for non-disclosure.

Difficulties comparing and changing policies, exclusions and the responsibilities of intermediaries are also raised.

Submissions should be lodged by 5pm on July 13. For more details, click here.