Tower resolves fee disclosure issue

Tower resolves fee disclosure issue | Insurance Business

Tower resolves fee disclosure issue

Tower Insurance has announced that it has identified and fixed an issue involving the disclosure of fees for some customers.

Richard Harding, chief executive officer of Tower, confirmed that they had identified an error in the way fees were disclosed to customers paying in instalments. Nevertheless, he offered assurances that the blunder did not leave any customers out of pocket or disadvantaged.

“We calculated and charged fees correctly and displayed the correct amount prominently on our customers’ renewal,” he said, as quoted by Scoop.co.nz.

“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.”

Read more: Tower Insurance offers reassurances on digital transformation

Harding explained that their new technology system was able to resolve the issue – with 350,000 customers currently being transferred from the insurer’s legacy products to new, clear language policies with no interest charges for paying in instalments.

“As we have said previously, we are committed to being transparent, improving our business, and delivering something better for customers. Our customers can be confident that any issues we identify will be appropriately resolved and communicated,” Harding concluded.