In June 2015 a city located on the North Island of New Zealand saw its worst flooding on record. Overnight, Whanganui was cut off from much of the rest of New Zealand, and split in half as its major bridges were closed. Over 100 properties were affected and hundreds of people evacuated. The response to this freak weather event by TOWER Insurance was rapid and decisive. “We immediately took action and dispatched claims and assessing teams to the region”, said Vanessa Dudley, TOWER’s General Manager of Customer Interaction.
“TOWER Insurance was the only insurance company on the ground immediately after the floods, and set up an emergency centre to assist our customers”, added Dudley. Further, the staff dispatched to Whanganui went on to manage the claims from the region, providing much needed first hand knowledge of the situation, and offering customers a seamless service, after such a larger-than-usual incident. This represents the core of TOWER’s business philosophy, which is to put the customer at the heart of its business.
In the event of extreme weather, customers are sent text or social media alerts to give them warning and time to prepare
Knowing core clientele
The winner of the World Finance award for Best General Insurance Company 2015, New Zealand, the company structures its approach to business around its customers. “TOWER Insurance’s vision is to be the leading light in New Zealand and Pacific general insurance”, said Dudley. This involves listening to customers and addressing their needs via multiple channels. It is a customer-centric philosophy, and it is ingrained in the company’s culture.
“We live and breathe our vision through collaborating teams working together in functions dedicated to providing a connected customer experience.” One way in which this goal is achieved is through integrating different areas from the workforce into one floor, allowing for collaboration between people from different departments, with an eye on producing the best solution for the customer. As Dudley explained, “Our marketing and product people sit on the same floor as our sales and service people, so everyone can hear and understand customer issues.
“We are an agile business in a market principally dominated by big international brands. Our success is based on our ability to listen to customers, and adapt our products and delivery models to meet their needs.” The company has set up its SmartCentre, which is a comprehensive online tool to assist customers with practical information, tools and resources, which TOWER describes as a “one-stop information resource full of tips and tricks and useful guides so that you’re always in the know”. For instance, the SmartCentre gives useful tips on how to be a safe traveller, safety tips in the event of a cyclone, a checklist to ensure safety during a storm and a checklist of information one should gather from other involved parties in the event of a motor crash.
Embracing the digital age
TOWER has a long history, operating in New Zealand for more than 140 years as well as having a longstanding presence in the surrounding Pacific Islands. Its rich history stretches back to 1869 when the Government Life Insurance Office was created. In 1953 it become its own statutory body and in 1987 became known as TOWER Corporation. Ownership was then passed to a mutual association after the 1990 passing of the TOWER Corporation Act.
The company undertook a demutualisation process in 1999 with the approval of its policyholders and the High Court. The effect of this was to convert TOWER’s legal status to a shareholder owned company. Subsequent to the demutualisation, TOWER Limited undertook a listing on the Australian and New Zealand stock exchanges in September 1999. Over the last three years it has divested itself of various business lines, life, health and investments, retaining and focusing on the general insurance business.
Yet it is not outdated. It is a forward looking company, always seeking to find new ways to adapt and move with an ever changing world: “We’re constantly moving with the times and are embracing the digital world”, continued Dudley, “As well as leading the way with innovative technology and new ways of working – designed to put customers first.” It has successfully utilised modern communication technology, and indicative of its forward-looking approach, TOWER was one of the first insurance companies in New Zealand to integrate social media into its operations. “We have had an active social media presence across Twitter, Google+ and Facebook since 2011 – we were one of the first insurance companies in New Zealand to do so”, said Mark Savage, General Manager of Customer Proposition.
In the event of extreme weather, customers are sent text or social media alerts to give them warning and time to prepare. Customers can also use social media to communicate with TOWER. “Many customers use Facebook for product or service queries, and we’ve got a frontline team responding to these daily”, Savage told World Finance. The company is committed to investing heavily in the development of its digital infrastructure, shown by a number of initiatives. One of the insurer’s most innovative digital developments has been its award winning SmartDriver app. The first of its kind to be launched in Australasia, the app enables customers to get discounts on their motor vehicle premiums as a reward for safe driving.
It also creates an incentive out of friendly competition. “The app taps into many New Zealanders’ innate competitiveness, allowing customers to pit their driving performance against family and friends”, Savage explained. Alongside this app, TOWER has also launched the Claim4Car app, which helps customers collect the required information they need at the scene of a car accident. As Savage added, “Our Claim4Car app guides users through the information they need to collect at the scene of an accident. It automatically generates a claim report which goes straight to TOWER Insurance to start the claim.”
The company has continued to keep pace with the ever-changing world of how customers are connected with businesses. Increasingly, consumers are using smartphones to conduct their online banking, shopping and, of course, keeping up with their insurance plans. Often, websites designed for access on desktop computers or laptops look unattractive and are hard to navigate on a mobile phone. It is for this reason that Google has decided to determine how high a website appears in search results based on mobile-user friendliness. It is fitting, then, that one important aspect of TOWER’s digital growth strategy this year has been the launch of new mobile friendly websites, making them more compatible with online mobile phone use.
Keeping everything together
This year saw TOWER partner with Trade Me, New Zealand’s largest online trading website to launch Trade Me Insurance, which provides online insurance offers. The streamlined service allows customers to easily get a quote online, buy an insurance plan, make a claim and manage their policy. According to Savage, the initiative “Promises to provide Kiwis with peace of mind around their home, contents and car insurance, but without the painful process”, and “is a real milestone for us.”
TOWER has seen considerable financial success lately, and has consolidated itself in a strong financial position. Its general insurance business performed solidly in the half-year to March 31 2015. This period saw gross written premiums grow by an impressive 4.9 percent, reaching a value of $145.9m. “We have also been extremely proactive over the past 18 months in increasing our reinsurance cover to reduce volatility and protect our capital base”, said Dudley. “TOWER Insurance remains very well capitalised”, she continued, “and we are proud to have a financial strength rating of A- from AM Best Company”, as of July 24 2015.
None of this, however, has left the company content. With an eye to the future, it has instituted a number of changes and initiated expansion into new markets. The Pacific Islands region is plagued by a lack of insurance and underinsurance, and TOWER plans to make a growing contribution to the area’s overall performance. Most recently, “we opened a new branch in Vanuatu”, Dudley said.
TOWER has also had a major revamp in its branding. “We’ve renewed our brand position to build on our strengths and focus on what our customers tell us matters most: insurance confidence”, noted Savage. This includes refreshing the TOWER company logo, website and TV commercials, while, Savage points out “staying true to the history, stability and reliability our customers value.”
To see TOWER through these changes, the company has recently appointed a new CEO, Richard Harding. With nearly 30 years of experience in the Australian and Asian insurance sector and having previously served as CEO of Territory Insurance Office, the leading general insurer in the Northern Territory of Australia, Harding is well placed to take on such a role. “Coming into the role fresh and from outside of New Zealand, he will bring a wealth of experience, drive and energy to the business”, said Dudley. With a new CEO, a branding revamp, customer-focused philosophy and increasing investment in the digital frontier of insurance, TOWER’s strong position looks set to continue.
