Westpac New Zealand will transfer its general insurance underwriting from IAG to Tower in mid-2026, a strategic move that points to the growing importance of digital capability and climate risk modelling in bancassurance partnerships.
From July 1 2026, Tower will underwrite Westpac’s house, contents, car and vehicle insurance products, replacing IAG after a long association. Westpac said the change followed a comprehensive review of its insurance arrangements.
Sarah Hearn, Westpac NZ’s managing director of product, sustainability and marketing, said the bank had been impressed by Tower’s customer service record and digital edge. “We’re pleased to be partnering with an innovative locally owned and operated general insurer with a strong customer focus,” she said.
Westpac plans to embed Tower’s insurance capabilities directly into its digital banking platform, allowing customers to access personalised insurance insights online. Hearn said the initiative would give policyholders a clearer view of their coverage and risks.
Tower, which has been in operation for more than 150 years, has twice been recognised as Insurer of the Year in home and contents category. The company’s use of advanced analytics to assess individual property exposure to climate events was also a deciding factor for Westpac.
The bank said it would work with Tower to promote greater transparency around natural hazard risk data and to advocate for national climate adaptation frameworks.
The decision signals a significant change in New Zealand’s insurance distribution landscape, where banks have traditionally leaned on large incumbents such as IAG. For insurance professionals in Australia, the move is a reminder that customer experience and risk innovation — not just balance sheet scale — are reshaping bank–insurer tie-ups.
Existing Westpac NZ customers will see no immediate impact, with current policies continuing under IAG until the transition date. Hearn thanked IAG for its longstanding role as underwriting partner.
The move is expected to sharpen competition in New Zealand’s general insurance market, with Tower gaining access to Westpac’s extensive customer base while IAG prepares to exit a key distribution channel.
