New legislation to modernise outdated insurance laws will help protect consumers and provide certainty for insurers, the Insurance Council of New Zealand Te Kāhui Inihua o Aotearoa (ICNZ) said.

The Contracts of Insurance Bill passed its third reading in Parliament today.

"We welcome the passing of the Contracts of Insurance Bill and strengthen New Zealand’s financial wellbeing. It’s long overdue and will benefit consumers and insurers," ICNZ chief executive Kris Faafoi said.

"The new legislation tidies up New Zealand’s mishmash of outdated insurance laws into a single framework to support well-functioning insurance markets. It also brings New Zealand in line with international best practice.

"The Minister of Commerce and Consumer Affairs Andrew Bayly deserves credit for his commitment to bring New Zealand’s insurance laws into the 21 st century. The legislation strikes a balance between strengthening protections for consumers while promoting fairness, certainty and sustainability in the insurance sector.

"We know there’s still a lot to do as the insurance industry works toward putting in place the changes required under the legislation.

"Insurers have up to three years before the legislation comes into effect and updating their systems and procedures in that time will be a mammoth task while also running their everyday operations and complying with their regulatory obligations.

"We will work closely with the Government and regulators to ensure the new legislation and other regulatory reforms the industry is facing are done in a co-ordinated way with realistic timeframes that benefit both consumers and the industry as whole.

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