What Is the IFSO? NZ Insurance Ombudsman Explained
The IFSO is New Zealand's free, independent insurance ombudsman. Learn how the Insurance & Financial Services Ombudsman works, what it covers, and how to file a complaint.
If you have a dispute with an insurance company in New Zealand and the insurer's internal process has failed you, the Insurance & Financial Services Ombudsman (IFSO) is your next step. It is free, independent, and its decisions are binding on insurers. Understanding how the IFSO works — and how to use it effectively — is essential for any New Zealand policyholder challenging a denied claim.
What Is the IFSO?
The Insurance & Financial Services Ombudsman Scheme (IFSO) is an approved dispute resolution scheme established under the Financial Service Providers (Registration and Dispute Resolution) Act 2008. All financial service providers operating in New Zealand — including insurance companies — are required to be members of an approved dispute resolution scheme. The IFSO Scheme is the main approved scheme for insurance disputes in New Zealand.
The IFSO:
- Is independent of all insurance companies and the government
- Is funded by levies on its member financial service providers
- Has no cost to consumers at any stage
- Issues decisions that are legally binding on member insurers (though consumers can reject an IFSO decision and pursue other remedies)
What Types of Disputes Does the IFSO Handle?
The IFSO handles disputes relating to:
- Health insurance claim denials
- Life insurance claim denials (including death claims and trauma/critical illness)
- Income protection insurance disputes
- Travel insurance denials
- General insurance disputes (home, contents, vehicle)
- Financial services disputes (KiwiSaver, investment products, lending)
In the context of health insurance, the IFSO can review disputes about: pre-existing condition exclusions, non-disclosure allegations, benefit limit applications, plan scope disputes, claim handling delays, and premium disputes.
The $200,000 Limit
The IFSO can make binding decisions for disputes up to $200,000 in value. For disputes above this threshold, the IFSO may still investigate and mediate, but cannot issue a binding decision — you would need to pursue a larger dispute through the courts.
Who Can File with the IFSO?
Any personal consumer who is or was a customer of an IFSO member can file a complaint. This includes:
- Individual policyholders
- Small businesses (in some circumstances)
- Former customers, for disputes arising during their policy period
- Beneficiaries (for life insurance and trauma claims)
You cannot file on behalf of another person unless you hold a power of attorney or are the legal representative of a deceased estate.
Mandatory First Step: Internal Complaint
Before you can go to the IFSO, you must first use the insurer's internal complaints process. The IFSO requires you to provide evidence that:
- You made a formal complaint to your insurer
- The insurer issued a final response that was unsatisfactory, OR
- The insurer failed to respond within a reasonable time (usually 40 working days)
If you skip the internal complaint and go straight to the IFSO, your complaint will be referred back to the insurer first.
How to File a Complaint with the IFSO
Online: The most efficient route is the online complaint form at ifso.nz. The form walks you through the required information step by step.
By phone: Call 0800 888 202. An IFSO staff member can explain the process and help you understand whether your complaint is within scope.
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By email: info@ifso.nz
By post: Insurance & Financial Services Ombudsman, Level 2, Shamrock House, 78 Waring Taylor Street, Wellington 6011
You will need to provide:
- Your name and contact details
- Your insurer's name and your policy number
- A description of the dispute and the outcome you are seeking
- Copies of: your insurer's final response, your original complaint, relevant claim documentation, and your policy schedule
What Happens After You File?
Acknowledgement. The IFSO acknowledges your complaint and assigns it to a case manager.
Preliminary assessment. The IFSO checks whether the complaint is within its jurisdiction and whether the internal process has been completed.
Information gathering. The IFSO invites your insurer to respond. Both parties submit their documentation and arguments.
Resolution attempt. The IFSO case manager attempts to assist both parties in reaching an agreed outcome. Many cases are resolved at this stage through negotiation.
Formal investigation. If resolution is not reached, the IFSO conducts a formal investigation and may ask for additional information or hold a case conference.
Decision. The IFSO issues a formal written decision. If the decision is in your favour, it is binding on the insurer. You are not bound — you can accept it or reject it and pursue the courts if you disagree.
What the IFSO Can Award
The IFSO can direct an insurer to:
- Pay a declined claim
- Reinstate a cancelled policy
- Pay compensation for inconvenience and distress
- Apologise
- Take other specific action
How Long Does the IFSO Process Take?
Most IFSO complaints are resolved within three to six months. Complex cases with significant factual disputes may take longer.
IFSO Contact Details
- Website: ifso.nz
- Phone: 0800 888 202
- Email: info@ifso.nz
- Address: Level 2, Shamrock House, 78 Waring Taylor Street, Wellington 6011
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