The New Zealand Financial Markets Authority (FMA) reported that the High Court in Auckland ordered general insurer Tower to pay a NZD 7 million civil penalty after admissions that it made misleading representations about its multi policy discount (MPD), resulting in customer overcharging of more than NZD 11 million. Tower admitted breaches of section 22 of the Financial Markets Conduct Act through invoices that misstated its MPD offer from 10 September 2016, with the overcharging continuing until February 2025, and through false or misleading MPD marketing material. The conduct affected about 61,000 customers covering around 90,200 policies, around 11% of Tower’s customer base, and Tower has repaid more than NZD 11.7 million through remediation. The court also noted FMA criticism that a 2017 settlement with the Commerce Commission was intended to ensure Tower invested in systems and processes to apply MPDs correctly, including through any migration process.
New Zealand Financial Markets Authority 2025-12-09
New Zealand Financial Markets Authority secures NZD 7 million penalty against Tower for misleading multi policy discount representations
The New Zealand Financial Markets Authority announced that the High Court in Auckland ordered Tower to pay a NZD 7 million civil penalty for misleading representations about its multi-policy discount, affecting about 61,000 customers and resulting in overcharges exceeding NZD 11 million. Tower admitted to breaches of the Financial Markets Conduct Act, with the court highlighting previous commitments to improve systems following a 2017 settlement with the Commerce Commission.