New Zealand insurance industry failing Māori consumers, regulator finds

Research from New Zealand’s Financial Markets Authority (FMA) indicates that the insurance industry is failing to meet the specific needs of Māori. A study led by Victoria University of Wellington found that 17% of Māori participants experienced insurance issues in the last two years, a rate nearly double that of the general population.

Key barriers identified include affordability, with 82% of participants stating that insufficient funds prevent them from covering insurance costs. The research highlights that conventional insurance models often fail to accommodate whenua Māori (collectively owned land), marae, and multiple ownership structures. Additionally, the high cost of insuring Māori taonga, such as carvings and woven panels, was noted as a significant burden.

Beyond financial constraints, the study found significant distrust in the insurance sector stemming from experiences of racism, bias, and historical power dynamics related to colonization. Participants also expressed concerns regarding whether insurance products adequately reflect the cultural and intergenerational value of Māori assets.