Tower adds landslide, sea surge to address-level pricing
Insurer Tower is adding individual property risk ratings for landslide and sea surge to its premium modelling across New Zealand.
More than 90% of customers will save an average of $NZ70 ($41) a year per property under the shift, it says.
For the rest, annual increases will be spread over a period of up to four years.
“People should only pay for the risks that apply to their homes, not someone else’s. Expanding our risk-based pricing model is a fair and transparent way to support this,” Tower CEO Paul Johnston said.
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Mr Johnston says national efforts must be focused on climate change adaptation, to keep insurance affordable long term.
Tower introduced risk-based pricing for earthquake in 2018 and flooding in 2021.
It is working with engineering consultancy Haskoning on sea surge risk, Swiss Re on landslide, and Moody’s on flood and quake.
Tower says a survey of 1050 New Zealanders in May found more than two-thirds support higher premiums for homes more prone to damage.