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Enhanced Reinsurance Builds Tower's Resilience

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Tower has strategically expanded its catastrophe reinsurance coverage, boosting capacity for the forthcoming financial year to enhance growth prospects and mitigate the impacts of large-scale events.

Chief Financial Officer Paul Johnston highlighted the company’s success in reinforcing ties with global reinsurance partners, including securing several multi-year agreements. "These agreements bring us a significant degree of long-term stability in terms of reinsurance costs and catastrophe excesses," Johnston remarked today.

Commending the achievement, Johnston added, "We are delighted to have established a robust reinsurance framework characterized by consistent excesses and stable pricing."

The company has elevated the upper threshold for catastrophe cover to NZ$800 million (US$733 million) from the previous NZ$750 million (US$687 million). Additionally, Tower augmented its coverage for a third event to NZ$85 million (US$78 million) from NZ$75 million (US$69 million).

Excesses for the initial two events have risen to NZ$18.75 million (US$17.2 million) from NZ$16.9 million (US$15.5 million), while the excess for a third event remains steady at NZ$20 million (US$18 million).

Tower projects that its reinsurance costs will constitute 11.7% of its total income, a reduction from last year's 13.9%, exemplifying efficient cost management.

Following an earnings guidance upgrade announced last month, the company looks forward to reporting its annual financial results in November.

Published:Tuesday, 24th Sep 2024
Author: Paige Estritori

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Insurance News

TAL's Health Sense Plus Now Covers Income Protection Policies

17 Apr 2026: Paige Estritori

In a significant development for policyholders, leading Australian life insurer TAL has announced the expansion of its Health Sense Plus program to encompass income protection (IP) policies. Effective from 8 August 2025, this initiative aims to incentivise proactive health management by offering premium discounts to clients who engage in preventative health checks. - read more

AFCA Directs Insurer to Reinstate Critical Illness Coverage After Miscommunication

17 Apr 2026: Paige Estritori

The Australian Financial Complaints Authority (AFCA) has recently ruled in favour of a policyholder who inadvertently cancelled his critical illness insurance due to unclear communication from his insurer, TAL Life. This decision underscores the critical importance of transparent communication between insurers and their clients, particularly regarding the implications of policy modifications. - read more

AIA Australia's Latest Enhancements to Priority Protection Insurance

17 Apr 2026: Paige Estritori

AIA Australia has recently updated its Priority Protection life insurance suite, introducing changes designed to simplify discounts, enhance policy clarity, and support premium affordability. These enhancements, effective from 9 November 2025, reflect AIA's commitment to providing value-driven solutions for policyholders. - read more

Zurich Australia's New Income Protection for Women's Health

09 Apr 2026: Paige Estritori

Zurich Australia has unveiled a pioneering income protection benefit tailored specifically for women's health conditions, including menopause and endometriosis. This initiative addresses the significant impact these conditions have on women's professional lives and financial stability. - read more

APRA's Renewed Efforts to Reform Income Protection Insurance

09 Apr 2026: Paige Estritori

The Australian Prudential Regulation Authority (APRA) has announced the resumption of its reforms targeting individual disability income insurance (IDII), commonly known as income protection insurance. This initiative aims to address the financial challenges that have plagued the industry, with insurers reporting losses exceeding $3.4 billion over the past five years. - read more

AFCA's Landmark Decision on Occupation Definitions in Income Protection Claims

09 Apr 2026: Paige Estritori

The Australian Financial Complaints Authority (AFCA) has recently delivered a pivotal ruling that clarifies the definition of 'occupation' within the context of income protection insurance claims. This decision arose from a dispute involving a policyholder whose income protection benefits were terminated after the insurer discovered he was listed as a director of a company while receiving payments. - read more

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Peril:
A specific risk or cause of loss covered by an insurance policy, such as fire, theft, or flood.

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