The Financial Markets Authority (FMA) – Te Mana Tātai Hokohoko is urging insurance and other financial service providers in New Zealand to make it easier for customers to raise complaints, following new research that points to significant gaps in consumer confidence and process accessibility.
Recent findings from the FMA reveal that less than a third of New Zealanders feel assured about how to file a complaint against their financial service provider.
The survey, which included responses from over 2,000 participants, highlights that 29% of consumers are confident in their ability to complain, while 40% are not sure what steps to take if they experience unfair treatment.
The research also shows that 7% of consumers wanted to complain but did not proceed. The main reasons cited include uncertainty about the process, doubts about whether their complaint would be addressed, and perceptions that the process would be difficult.
Among those who refrained from complaining, 29% said they did not know how to do so, and 33% believed that making a complaint would not make a difference.
The FMA’s data indicates that nearly one in three complaints (31%) are not resolved. Among those who did submit complaints, 57% reported satisfaction with how their issue was handled, while 21% expressed dissatisfaction.
These figures suggest that while some consumers have positive experiences, a significant proportion remain dissatisfied or disengaged from the process.
Clare Bolingford, executive director of licensing and conduct supervision at the FMA, said companies should reassess their complaints procedures to make sure they are straightforward and accessible for consumers.
“Companies are burying complaints processes deep on their websites, requiring details a customer may not have to hand and treating customers in a defensive and dismissive way,” she said.
The research also identified demographic differences in complaint behaviour. Māori respondents were more likely than the general population to feel confident about complaining (36% versus 28%), but also reported a higher likelihood of wanting to complain without following through.
Physically disabled consumers were more likely to cite anticipated difficulty as a reason for not lodging complaints.
The FMA has made complaints handling a regulatory priority for 2025, emphasising that effective processes support fair treatment, early resolution, and trust in the financial sector.
The regulator’s latest information sheet advises providers to ensure that complaints procedures are visible, accessible, and transparent.
Firms are encouraged to analyse complaints data for recurring issues and use insights to improve products and services.
Bolingford also noted that when consumers are well-informed about how to raise complaints and firms handle them effectively, it helps foster trust and gives companies valuable feedback to refine their operations and customer outcomes.
“As New Zealanders are facing increasing financial pressures and rising costs, maintaining consumer confidence in financial services is more important now than ever,” she said.
The FMA is calling on insurance companies and other financial institutions to review their complaints frameworks, ensure information is easy to find, and address barriers that prevent consumers from coming forward.
The regulator’s guidance includes questions for firms to consider, such as whether their processes are well signposted, if customers feel heard, and how feedback is integrated into business decisions.
