Tower fined $7m for misleading customers about policy discounts

Insurer Tower has been ordered to pay a $7 million penalty for misleading 61,000 customers – 11% of its client base – about its discount policy, resulting in overcharges of more than $11m.

Tower self-reported the issue to the Financial Markets Authority in 2021. The FMA subsequently issued civil proceedings in the High Court, alleging breaches of the Financial Markets Conduct Act.

Tower admitted breaching s 22 of the Act by misleading customers in its invoices about its multi-policy discount (MPD) offer, made to customers holding multiple qualifying insurance policies. The breaches began on 10 September 2016 and continued until February 2025.

Tower has also admitted to making false or misleading representations in marketing material in relation to MPDs. It has carried out remediation and repaid more than $11.7m.