IFSO Scheme gains high marks

IFSO Scheme gains high marks | Insurance Business New Zealand

Insurance News

Review released amid upcoming legislative changes

Insurance News

By
Roxanne Libatique

The Insurance & Financial Services Ombudsman Scheme (IFSO Scheme) has made its 2023 Independent Review available online, highlighting the scheme’s fairness and professionalism.

Every five years, the IFSO Scheme is mandated to undergo a public independent review of its complaint handling processes.

According to the review, the IFSO Scheme is highly regarded among stakeholders for its professionalism, transparency, expertise, rigor, and balanced approach.

“Without exception, people spoke highly of the IFSO Scheme and its professionalism. Strengths and qualities of the IFSO Scheme that were frequently mentioned were: it acts professionally; is widely respected for its expertise, rigour, and balance; is approachable, transparent and pragmatic in how it handles cases; and it works collaboratively with all stakeholders,” it said.

The review further found that the principle of independence, a government accreditation criterion for dispute resolution schemes, is deeply embedded in the IFSO Scheme’s constitution and operations.

Additionally, it confirmed that the principle of fairness is consistently applied in both the scheme’s processes and its decisions.

Merger of the IFSO Scheme and Financial Services Complaints Limited in 2025

Legislative changes, such as the Ministry of Business, Innovation and Employment’s (MBIE) financial services reforms, the increase in monetary limits, and the planned merger of the IFSO Scheme with Financial Services Complaints Limited in 2025, were also considered in the review.

Due to the anticipated merger, McMillan did not provide formal recommendations for the IFSO Scheme. Instead, he framed the issues within the context of the merger for consideration.

Sue Suckling, chair of the IFSO Scheme, expressed her approval of the review, highlighting the positive feedback on how the scheme operates.

“Prof McMillan’s review has highlighted the positive regard for the way in which the IFSO Scheme operates, and the sound approach the Scheme has to the principles of independence and fairness. Other comments in the review give good insight into how we might incorporate the changing dynamics in the economy and the environment, and the current government’s interest in reforming aspects of the financial sector,” she said.