Since launching in 1995, the scheme has grown to encompass over 4,300 financial service providers
The Insurance & Financial Services Ombudsman Scheme (IFSO Scheme) is marking three decades of delivering independent dispute resolution services to New Zealand consumers and small businesses.
Since launching in 1995 with just 62 insurer participants, the scheme has grown to encompass over 4,300 financial service providers, including financial advisers and insurers.
Karen Stevens, who has led the IFSO Scheme since 1998, says its core mission remains unchanged: “Our purpose hasn’t changed in 30 years – to provide a dispute resolution service that is independent, fair, accessible, and free for consumers.”
Rapid expansion followed the introduction of the Financial Service Providers (Registration and Dispute Resolution) Act in 2008, which made it mandatory for financial service providers to join an approved scheme. Despite broadening its membership, insurance remains the primary source of complaints, accounting for 96% of the 600 disputes accepted for investigation in 2024-25.
House insurance remains the top complaint category (24%), followed by motor vehicle (19%) and travel insurance (18%). The scheme's monetary limit for complaints has also increased – from $100,000 in 1995 to $500,000 in 2024 – allowing higher-value claims to be resolved without charge to the consumer.
The IFSO Scheme has played a crucial role during national crises. Complaints surged by 45% after the 2023 Auckland floods and Cyclone Gabrielle, echoing a similar post-earthquake spike following Christchurch’s 2010-11 events, which generated complaints for nearly a decade.
To date, the scheme has handled 86,328 cases. It will celebrate its 30-year milestone at its annual conference in Auckland on Sept. 2.
“For 86,000 consumers, we’ve made a difference where they may have otherwise gone to court or given up,” Stevens said. “Every complaint resolved is a reminder of why independent resolution matters.”
