Insurance provider Tower will no longer offer insurance for commercial farms, instead focusing on personal and small business cover.
The company will continue to insure lifestyle blocks under its new strategy.
Tower’s commercial rural book generated premium income of about $9 million a year.
However, from February 1 2024 Tower will refer its commercial farm customers to Aon New Zealand’s AonAgri division as their Tower policies expire.
Tower chief executive Blair Turnbull said this is the latest move Tower has taken to streamline and improve the efficiency of its business over the past three years.
“This change will help smooth the path to decommissioning our last legacy technology system in New Zealand. We look forward to developing a new digital offering for our lifestyle block customers in the coming year,” he said.
Turnbull said the Aon agreement provides good value for Tower’s shareholders and provides commercial rural customers with access to specialised insurance solutions with AonAgri.
Tower will continue to progress any open Tower claims lodged within the policy term as normal, up until their completion. No regulatory approvals are required to proceed with the agreement.