20 Nov 2023

Tower honing in focus on personal and small business insurance

3:45 pm on 20 November 2023
Tower Insurance bulding at 45 Queen Street, Auckland

Photo: RNZ / Dan Cook

The insurer Tower is quitting the commercial rural sector in a bid to focus on personal and small business insurance.

The company's commercial rural book generated premium income of about $9 million a year.

In a statement to the share market, chief executive Blair Turnbull said Tower has been focused on simplifying and improving the efficiency of its business over the past three years.

Tower said from February next year, the company would refer its commercial farm customers to Aon as their Tower policies expired.

However, the insurer would continue to insure lifestyle blocks despite the change in strategy.

"This change will help smooth the path to decommissioning our last legacy technology system in New Zealand. We look forward to developing a new digital offering for our lifestyle block customers in the coming year," he said.

Tower said the Aon agreement would provide "good value for Tower's shareholders and provides commercial rural customers with access to specialised insurance solutions with AonAgri".

Tower would continue to progress any open claims lodged within the policy term until its completion.

The company said it did not need regulatory approval for the changes.

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