Office address: Level 2, Solnet House 70 The Terrace Wellington 6143
Website: ifso.nz
Year established: 1995
Company type: external dispute resolution (EDR)
Employees: 15+
Expertise: insurance complaints, financial services disputes, responsible lending, credit contracts, consumer protection, dispute resolution, legal compliance, financial education, member support
Parent company: Insurance & Financial Services Ombudsman Limited
Key people: Karen Stevens (CEO), Louise Peters (deputy ombudsman), Andrew Gunn (strategic partnerships manager), Sarah Smythe (communications manager), Sharee Lowe and Libby Seaton-West (case managers), Christina Gibson (legal counsel)
Financing status: N/A
The Insurance & Financial Services Ombudsman Scheme (IFSO Scheme) is New Zealand’s official, independent and free dispute resolution service. It assists consumers and small businesses in resolving issues with insurance or financial service providers, without needing to go to court. For over 30 years, the scheme has resolved thousands of complaints.
The IFSO Scheme began in 1995 with 62 insurers who wanted to give their customers a fair way to resolve disputes. Over the years, many of those original insurers have remained, even as the insurance sector in New Zealand has changed and grown.
A turning point came in 2008, when new laws required all financial service providers to join an approved dispute resolution scheme. The IFSO Scheme welcomed financial advisers and other providers, reaching over 4,300 members by 2014. Insurance complaints have always made up the bulk of the cases, but the scheme’s reach now covers a wide range of financial services.
Following the earthquakes in Christchurch in 2010 and 2011, thousands of residents relied on the scheme to settle insurance disputes, with these cases continuing until around 2020. More recently, the Auckland floods and Cyclone Gabrielle in 2023 led to a 45% jump in complaints, as people faced delays and service issues with their claims.
The scheme’s monetary limit for complaints has grown from $100,000 in 1995 to $500,000 in 2024. This made it possible to resolve more complex disputes for free. By 2025, the scheme accepted a record 600 disputes for investigation, with most relating to insurance.
When the IFSO Scheme celebrated its 30th anniversary in 2025, it noted that over 86,000 New Zealanders had used its services, often as an alternative to court. The scheme’s ongoing work highlights the role of independent dispute resolution in New Zealand’s insurance and financial services sector.
The IFSO Scheme delivers a range of services to support both consumers and financial service providers across New Zealand. Its offerings are designed to resolve disputes, provide guidance and improve industry standards:
These services give consumers and providers practical support and clear pathways to resolve disputes. The IFSO Scheme aims to make complaint resolution straightforward and accessible for everyone involved.
The IFSO Scheme states that its service is independent, fair and free for consumers. The scheme’s principal duties include providing a complaints service that is:
These duties are reflected in the scheme’s approach to complaint handling and service delivery. The IFSO Scheme also reports that it maintains an arm’s length approach with its 3,600 participants. This ensures equal and unbiased treatment for both consumers and providers.
Karen Stevens is the CEO and the Insurance & Financial Services Ombudsman. Stevens also serves on the executive committee of ANZOA.
Before this role, Stevens was a founding member of ANZOA and chaired the International Network of Financial Services Ombudsman Schemes. She is a qualified arbitrator and mediator, and holds a masters in law focused on conflict resolution.
Here’s the rest of the leadership team at IFSO Scheme:
They work closely with the board of directors, who oversee operations and ensure statutory requirements are met. This structure supports effective leadership and helps the IFSO Scheme achieve its objectives.
In 2024, the IFSO Scheme joined forces with Banqer, a financial education technology provider, to help young New Zealanders learn about insurance and financial services. They aim to raise awareness of independent complaint resolution among future consumers. This initiative supports the scheme’s goal to prepare the next generation for real-world financial decisions.
The IFSO Scheme also reviewed a lender’s actions in 2025 after a senior borrower struggled with high loan repayments. The scheme helped the client get fees waived and the loan changed to interest-free payments. This activity shows how it supports fair lending for people facing financial hardship now and in the future.
Since launching in 1995, the scheme has grown to encompass over 4,300 financial service providers
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