Westpac NZ customers applying for a home insurance quote in Westpac One online banking can now directly access information from Tower Insurance about the natural hazard risks for a specific property.
The move comes as new survey data shows 90% of New Zealanders think it's extremely or very important to have access to information about potential natural hazard risks for properties they own or are interested in buying. However, the survey also shows one in five people aren't confident about where or how to find that information.
The natural hazard risk information is being delivered through Westpac's new general insurance partnership with Tower, which was announced last year and comes into effect today. Tower is now Westpac NZ's underwriter for new House, Contents and Car insurance products.
Sarah Hearn, Westpac NZ Managing Director of Product, Sustainability & Marketing, says making the information available directly through online banking or the Westpac One app will help customers make informed decisions faster.
"Every property in New Zealand is unique and we want to help homeowners carefully consider their risks," Ms Hearn says.
"We always recommend people do their due diligence when looking at a prospective home, so it's positive to have this additional information for insurance purposes easily accessible to Westpac customers - we're always looking for ways to show up differently and help our customers be better informed.
"More broadly, we're also really excited about the innovative way insurance has been integrated into Westpac One. Customers can click into the insurance area of the app or in online banking to easily get a quote or see details about their new policies.
"We're pleased to be working with Tower to deliver simpler, more insightful digital experiences for our customers. In particular, it's great to be giving people access to information about natural hazard risks for insurance purposes - Tower is a leader in using advanced data and analytics to assess the risks of individual properties being impacted by climate-related events."
A nationally-representative survey of 529 people, commissioned by Westpac NZ and conducted on research platform Ideally late last month, found while 90% of New Zealanders think it's extremely or very important to have information about potential natural hazard risk impacts to their own property or a property they're interested in, only 63% of New Zealand homeowners said they actively sought out this kind of information before buying their current property.
That figure varies significantly depending on when the home was purchased - 91% of homeowners who bought in the past two years sought out this kind of information, compared with only 35% of those who bought more than 10 years ago.
Ms Hearn says it's clear that New Zealanders want more information about natural hazard risks so they can make informed decisions.
"The survey showed 91% of current homeowners said they'd seek out information about natural hazard risks before buying a future property, but only 80% of those currently renting said they'd do so. Confidence about how to access this kind of information also differs between those groups, with 86% of homeowners saying they felt very or somewhat confident, compared with only 68% of people renting.
"There's an opportunity to make it easier for those not yet on the home ownership ladder to access important information about properties they're interested in. By making natural hazard risk information about a property easily available through our app or online banking, people can both seek appropriate insurance cover and generally become better informed.
"Westpac is also the only New Zealand bank to provide interest-free lending through its Greater Choices home loan top-up to support investment in property resilience.
"For example, investing in better drainage or elevating your outdoor appliances above ground can help reduce the impact of flooding."
Westpac NZ's Greater Choices Home Loan* offers up to $50,000 interest-free lending for five years on measures including:
- damp-proofing exterior foundation walls;
- installing underfloor ground moisture barriers; site drainage and storm water diversion improvements;
- raising your home above identified flood risk thresholds;
- repositioning outdoor appliances above likely flood levels;
- removing or strengthening chimney structures.
Paul Johnston, Chief Executive Officer of Tower Insurance NZ, says Tower is looking forward to supporting Westpac's customers with their insurance needs.
"Tower's approach means customers' insurance cover is personalised to their property. Premiums are calculated based on the flood, earthquake, sea surge and landslide risk Tower sees at that particular property, not someone else's.
"We think this is the fairest way to calculate premiums, and as the Canstar Home and Contents Insurer of the Year for the past three years, we're proud to be bringing that approach to Westpac customers," Mr Johnston says.
Existing Westpac insurance customers don't need to take any action as their current insurance policies underwritten by IAG will continue.
