NEW ZEALAND Law and Practice Contributed by: Aaron Sherriff, Tanya Wood and Nick Laing, Duncan Cotterill
or by action (the Arbitration Act, Second Schedule, Article 35). The District Court Rules 2014 and the High Court Rules 2016 outline the procedure for recognising and enforcing arbitral awards. New Zealand is party to a number of international con- ventions, which are transposed into New Zealand’s Arbitration Act. • The Geneva Convention on the Execution of Foreign Arbitral Awards (opened for signature in Geneva on 26 September 1927), implemented by the Arbitration Act (Schedule 3). • The Convention on the Recognition and Enforce- ment of Foreign Arbitral Awards (adopted in New York by the United Nations Conference on Inter- national Commercial Arbitration on 10 June 1958) (the “New York Convention”), implemented by the Arbitration Act (Schedule 3). • The Washington Convention on the Settlement of Investment Disputes Between States and Nation- als of Other States (18 March 1965). New Zealand became a signatory on 2 September 1970 and the statute implementing this Convention is the Arbitra- tion (International Investment Disputes) Act 1979. 9.7 Alternative Dispute Resolution Alternative dispute resolution plays a significant role in the resolution of commercial insurance disputes in New Zealand – in particular, mediation (see 9.3 Litiga- tion Process ). Consumer insurance disputes tend to be resolved by scheme dispute resolution providers. Insurers must have an internal dispute resolution process that must be followed first. If resolution is not achieved, a con- sumer may refer the complaint to the relevant dispute resolution scheme. There are four approved schemes currently operating
on complaints that are binding only on insurers. The IFSO typically confines any awards within policy terms. It has a limited discretion to award up to NZD10,000 for special inconvenience or cost to the customer. • The Financial Dispute Resolution Service. • Financial Services Complaints Limited. 9.8 Penalties for Late Payment of Claims Insurers in New Zealand do not typically face punitive damages claims. It is possible for general damages to be awarded for the late payment of claims if insurers improperly delay settling claims, which would be at a An insurer may exercise the rights of the insured when pursuing a third party for the insurer’s loss in meeting the indemnity under its contract of insurance. There is no need to have a separate clause entitling subroga- tion, as this is an implied term in insurance contracts. However, the contract itself may also expressly state such a term. nominal amount, but this is not typical. 9.9 Insurers’ Rights of Subrogation Insurtech developments in New Zealand are limited to date. Some insurers have developed web-based apps for their clients to access but which are typically only portals to access basic information, obtain quotes and apply for coverage, and submit claims. Technology is also being used to more accurately assess risk, both for predicting the risks of future extreme natural haz- ard events and in respect of customer risk profiles. An example of this is AIA Vitality, a health and well- being programme that AIA policyholders may sub- scribe to and access via a smartphone app and connected devices (eg, a smartwatch). Greater par- ticipation in the programme generates policy benefits (including premium discounts) and other rewards to redeem at health and well-being retailers. 10.2 Regulatory Response The RBNZ does not have a formal position on insurtech issues. The products described in 10.1 Insurtech 10. Insurtech 10.1 Insurtech Developments
in New Zealand, as follows. • The Banking Ombudsman.
• The Insurance and Financial Services Ombudsman (IFSO) – most insurers in New Zealand are mem- bers of this scheme. The IFSO can make decisions
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