A majority of New Zealanders believe the companies they deal with are not meeting the standards they promise, according to new findings from Accenture Song.
The latest Brand Experience Gap report, which surveyed 1,527 consumers across six sectors, found 72% of respondents felt there was a shortfall between corporate promises and what was actually delivered. This was up slightly from 71% recorded in 2024.
Financial services firms, including insurers, were seen as performing comparatively better than other sectors but still recorded a 63% gap, meaning almost two-thirds of customers considered their expectations unmet.
Respondents pointed to the need for more reasonable fees and rates as a main area for improvement.
General insurance providers were assessed separately, with a 71% gap.
Travel and tourism registered 76%, telecommunications 72%, utilities 68%, and media and entertainment recorded the highest at 79%.
Across industries, the areas most often cited by consumers were:
Accenture Song New Zealand lead Storm Day said the research underscored the importance of delivering consistent customer outcomes.
“Customers are demanding more from the brands they deal with, and rightly so. In an increasingly complex business environment, companies simply can’t afford to promise what they can’t deliver,” she said.
The survey results coincide with record levels of insurance complaints being escalated to the Insurance & Financial Services Ombudsman Scheme (IFSO Scheme).
For the year to June 30, 2025, the scheme accepted 600 disputes, representing a 25% increase compared with the previous year and more than double the 285 disputes lodged in 2022.
The IFSO Scheme handled 4,293 enquiries and complaints in total.
While many were resolved early, Ombudsman Karen Stevens said a growing number continued to formal investigation after consumers completed insurers’ internal dispute processes.
Stevens pointed to cost-of-living pressures and higher premiums as likely contributors – alongside greater consumer expectations of what insurance policies should cover. House insurance premiums alone increased by almost 25% in the past year.
Disputes relating to general insurance made up two-thirds of the caseload, including house, contents, motor vehicle, and travel policies. Life, health, and disability products comprised 29%, while 4% related to credit contracts and other financial services.
House insurance accounted for 24% of all disputes, motor vehicle 19%, and travel insurance 18%.
Stevens said outcomes often turned on how policy wording was applied. She cited a recent case involving a customer whose vehicle was stolen and repaired, with the insurer covering more than $37,000 in costs.
The customer later sought further compensation for unrelated faults, but independent assessors found no evidence linking the issues to the theft. The complaint was not upheld.
“The IFSO Scheme can only consider whether the insurer had correctly applied the terms and conditions of the policy to the claim,” Stevens said. “There was no evidence that the issues were caused by the theft, and the insurer had met its obligations under the policy.”
