New Zealand insurers have achieved “high standards” in handling claims and serving customers, according to the Fair Insurance Code’s first annual report.

There were 3858 complaints made to insurers’ internal dispute resolution services last year, arising from 1.12 million claims received by insurers.

Complaints handled by internal resolution services produced a 95% settlement outcome.

“Fourteen upheld complaints out of more than 1.12 million claims certainly puts in perspective that insurers are meeting high standards of service and resolving almost all claims,” Insurance Council of New Zealand CEO Tim Grafton said.

“By reporting the facts, we can hopefully change misconceptions in the community so people can have confidence that insurance is there for you when you need it.”

The code took effect in January last year, incorporating key changes such as requiring insurers to offer enhanced, effective communication, act reasonably when faced with the non-disclosure of relevant information, and prioritise vulnerable customers in a catastrophe.