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- Insurance company Tower (TWR) will be giving back $7.2 million to customers due to the lower cost of car claims during the COVID-19 lockdown
- Refunds will start to be paid from the end of June and most customers will receive between 40 to 45 per cent of the car insurance premiums they paid
- Refunds will be paid to customers who held car insurance with Tower from March 24 to May 13 and will be calculated on premiums paid by individual customers
- Customers who cancelled or joined Tower during the lockdown period will also receive a refund
- Tower has ended the day with no change and shares trading for 57 cents each
Insurance company Tower (TWR) will be giving back $7.2 million to customers due to the lower cost of car claims during the COVID-19 lockdown.
CEO Richard Harding stated that customers would be refunded part of their car insurance premium they paid during the stage three and four lockdowns.
“We’re a Kiwi company and look after our customers, so after seeing a significant reduction in claims, we knew the right thing to do was pass these lower costs on,” Richard commented.
“For most customers, the refund will equate to around 40 to 45 per cent of the car insurance premiums they paid between March 24 and May 13,” he said.
“We had planned to make refunds by the end of May, but because we also saw lower claims during the level three lockdown, it’s taken us a little longer to calculate, so refunds will now be paid from late June,” he added.
The refunds will be calculated based on individual customers’ premiums, excluding taxes, fees, and levies, and they will also be allocated to customers who cancelled or joined Tower during the lockdown period.
The cost of the refund is offset by the reduced claims cost, resulting in a neutral financial impact to the company.
Tower has ended the day with no change and shares trading for 57 cents each in a $240.3 million market cap.
