The number of insurance disputes handled by New Zealand’s financial services ombudsman remained steady this year while other industries surged.

Financial Services Complaints Limited investigated 532 disputes in 2025-26 – the most in its history, and a 49% increase on the year before.

The biggest rise was among “transactional service providers”, but FSCL told insuranceNEWS.com.au there were no notable changes in the number or types of dispute concerning insurance.

Financial ombudsman Susan Taylor says the leading insurance complaint issue remains “advice”, such as consumers arguing policy wording was unfair or misapplied.

She says insurers should clearly communicate what policies cover and exclude, and consumers should ensure they understand policy terms when taking out or renewing cover. 

FSCL received 130 complaints about insurers in the year, of which 106 became official disputes.

There were 42 advice disputes; 13 about business cover; six home and contents; six life insurance; three about “other” policies including motor; four professional indemnity; and 32 for travel.

Ms Taylor says the sharpest increase in overall complaints in 15 years reflects “the real-world impact of ongoing financial stress for some New Zealanders ... More people are turning to us when they experience hardship or service issues and feel they have limited options.

“Our job is to listen to both sides and help reach a fair and practical solution.”

Another driver is a rise in consumers using AI to make their complaints.

One sector recording a major increase was non-bank lenders, including credit card providers, for which disputes were up 65%.

Financial Services Complaints Limited operates separately to the Insurance & Financial Services Ombudsman Scheme.