13 March 2020
Tower Insurance today advised it has identified, resolved and self-reported an issue relating to the disclosure of fees for some customers.
As part of Tower’s conduct and culture review, an error was identified in the way fees were disclosed to customers who paid in instalments.
Tower CEO, Richard Harding, confirmed that no customer was left out of pocket or disadvantaged as a result of this error.
“We calculated and charged fees correctly and displayed the correct amount prominently on our customers’ renewal.
“However, further on in the policy documentation, a lower and incorrect interest percentage fee was disclosed, which may have led to some confusion and we apologise for that.
“While no customer was disadvantaged, we recognise this error may have caused confusion, so after identifying the issue we reported it to the FMA and volunteered to donate $100,000 to the Starship Foundation”
“Our new technology system has resolved this issue for us. Our 350,000 customers are currently being transferred from hundreds of legacy products to new, plain language policies, with no interest fee charged for paying in instalments.
“As we have said previously, we are committed to being transparent, improving our business and delivering something better for customers. Customers can be confident that any issues we identify will be appropriately resolved and communicated,” said Harding.
Chief Executive Officer
ARBN 088 481 234 Incorporated in New Zealand
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