Looking out for your future
Tower wants Kiwis to think longer-term about the threat of climate change
Climate change and severe natural weather poses a greater threat to ew ealand homes ccording to the loyd s of ondon nsurance isk ndex eport, ew ealand is the second riskiest country in the world for natural disasters, after Bangladesh s climate change intensifies extreme weather, there has never been a more critical time for kiwis to think long-term, to protect their assets for the future
Building resilience is key for iwis, and companies in the financial sector are developing tools to help people understand their climate risks and encourage action Tower has introduced a new risk-based pricing model in recent years, calculating house insurance premiums based on individual climate-related exposures
Tower is the first insurer to provide this level of transparency to customers with low, medium or high ratings for flood and earth uake, paired with a breakdown of how much each
risk has contributed to their premiums hile a small number of customers have seen the flood portion of their premiums increase, nearly per cent of households have seen a decrease
ccording to on udaliar, Chief Underwriting Officer at Tower, risk-based pricing has been introduced to make premiums fairer and more reflective of the real risks facing each iwi home e says Tower is keen to engage with iwis on climate-related risks and help households become more future-proof
udaliar believes more precise premiums will help inform and encourage iwis to take action to make their properties resilient
or example, if a customer in a high-risk area has built a wall or put their house on stilts to guard against floods, we can take that into account, he says
e believe this model encourages customers to make changes and take a more proactive approach to climate change e don t want to be the ambulance at the bottom of the cliff e want to identify high-risk homes and work with people to protect them
eading insurers like Tower have a significant role to play in shaping the behaviour of ew
ealanders and encouraging us to become more sustainable
s a company uni uely placed to discuss climate risks, Tower is in dialogue with the government and local councils
t s not ust an insurance issue, udaliar adds t s about working together on mitigation, looking at where we should build, or reviewing where we should have a managed retreat due to climate effects t s a long-term, nationwide programme
ast eptember, Tower introduced a sustainability benefit for home insurance customers, providing them with an extra , in the event of a total loss from a fire or flood on top of the sum insured The claimant can use the money to buy more sustainable materials for their home as they rebuild
Tower s climate efforts come alongside a company-wide drive to reduce its carbon footprint Tower recently moved into a new reen tar corporate head uarters in
uckland s CB as it looks to implement a comprehensive climate action plan
Tower is also backing students embarking on a world-first Bachelor of Climate Change egree at the University of aikato, and is the first corporate supporter of scholarships for the degree Tower has pledged , over three years to support iwi students
udaliar says Tower is keen to help iwis protect their assets and financial future by thinking long-term
The measures we have taken are designed to help support and protect the assets people own or use, and encourage them to make the right choices s we look ahead to the future, every ew
ealander will need to take a long-term view
Learn more at tower.co.nz