Two-thirds of consumers are dissatisfied with their health and life cover, a Consumer NZ survey has shown.
Three out of ten respondents thought their insurance was good value for money, according to an article by Radio NZ.
Consumer NZ CEO Sue Chetwin told Nine to Noon that it should be a requirement for insurers to provide a straight-forward, one-page summary of core policy cover to help people get a fairer deal.
Chetwin said incomprehensible legalese through insurance policies was confusing to the customers and also in comparing policies between different insurers.
“It’s very hard to get any information from insurance companies about their premiums, unless you go to their individual sites.”
Consumer New Zealand also says proper disclosure from insurance companies is important.
“Proper disclosure is a two-edged sword in some respects, you can be deluged [with information], but what we’re saying is proper disclosure of the terms that would really affect you, and transparency.”
Chetwin said she would like to see legislation governing the insurance industry reviewed within the coming twelve months.
“Insurance, you have to have it, you’d be mad not to, but the industry itself has got a lot of work to do. I would like to think that there are some new regulations that will happen.”
According to the Health Funds Association of New Zealand (HFANZ), over a million Kiwis hold a health insurance policy, and over a billion dollars has been paid by health funds in the last recorded year.
A survey of health fund holders by Canstar Blue showed that only Southern Cross Healthcare received a five-star review from Kiwis for overall satisfaction for health claims.
The research also found that 90% of New Zealanders value the peace of mind that their insurance brings and 63% said they will sacrifice spending in other areas before giving up their health care policy.
24% had compared premiums online from different health funds in the past year but only 3% have actually switched providers. Of those who had stayed put with their provider, 56% said they were happy and felt no need to go elsewhere.