Following its introduction to Parliament in April this year, the Contracts of Insurance Bill (Bill) passed its third reading on 14 November 2024. With just Royal assent by the Governor-General required now, the reform of New Zealand's insurance contracting regime is – finally – set to become law.
The Bill will modernise and consolidate existing insurance laws. It is intended to provide consumers with greater clarity and confidence they will be treated fairly by insurance providers, including by modifying (and clarifying) a policyholder's duty of disclosure and the consequence for failure to comply with that duty.
The Bill, in two parts (the Contracts of Insurance Act and the Contracts of Insurance (Repeals and Amendments) Act), will come into force on dates to be set by Order in Council, with a longstop date of three years from the date of Royal assent.
An overview of the key changes to insurance contracting law proposed in the Bill, as it was first introduced to Parliament, is set out in our article here. Some further refinements have since been made, including to:
- include regulation-making powers that enable the Governor-General, on a recommendation from the Minister, to prohibit or regulate the conduct of insurers in relation to genetic testing;
- explicitly exclude contracts of reinsurance from the scope of the Bill; and
- make various other amendments to address submission made through the Select Committee process.
Please contact one of our experts if you would like to discuss any aspect of the Bill.