The Financial Services Federation (FSF) has launched a Responsible Credit-Related Insurance Code to help consumers be better informed when it comes to credit-related insurance.
In a statement, FSF said that New Zealand insurance companies have joined together to help consumers understand their rights and obligations when dealing with credit-related insurance products, and what responsible providers will – and won’t – do.
Ms Lyn McMorran, FSF’s Executive Director, emphasises the key thing about the Code is letting consumers know what responsible credit-related insurance providers do, and the value of the protection this type of optional insurance provides.
“We also hope the Code will be used as a reference for regulators to understand that there is a responsible credit-related insurance sector in New Zealand. The Code is intended to assist them in identifying what responsible behaviour looks like so that they can perform their enforcement duties where necessary."
This is the latest resource provided by the FSF, the voice of New Zealand’s responsible, non-bank financial institutions.
The Code is written with consumers in mind, using simple and informative language, and has been formulated with the help of budget advisory services. It explains the types of credit-related insurance available and what they do, as well as the correct application process, key features of insurance contracts, how a responsible insurer should behave, and the consumer’s responsibilities.
The FSF is New Zealand’s largest industry organisation representing responsible, non-bank financial institutions. The FSF has a strict joining criteria and takes a “quality over quantity” approach to its membership numbers. The Federation currently has 56 members, all of which are subject to a Code of Conduct which ensures its reputation as the setter of industry standards in responsible lending.