The number of general insurance disputes in New Zealand has reached a record high, according to the Insurance & Financial Services Ombudsman Scheme.

The scheme accepted a record 600 disputes for investigation in the year to June 30, up 25% on the previous year.

Of those investigated, 67% related to general insurance including home, contents, vehicle and travel; 29% were about health, life or disability cover; and 4% related to credit contracts and other financial services.

Home insurance continues to be the top area for complaints, accounting for 24% of all disputes, followed by motor (19%) and travel (18%).

The scheme received 4293 enquiries and complaints over the year across insurance and financial services.

“Many of these cases were resolved quickly with assistance from our front-line team,” ombudsman Karen Stevens said.

“However, we’re seeing a growing number of complaints that remain unresolved even after going through the financial service providers’ internal processes. These cases escalate into disputes that require formal investigation by the IFSO Scheme.”

She says rising premiums may be driving the rise in insurance cases.

Figures from Financial Services Complaints, another dispute resolution scheme, also shows insurance cases have increased.

Last year, the two schemes considered merging, but they have decided against the move.