Advisers should prep for integrated insurance conversations ahead
Westpac NZ has confirmed a new partnership with Tower to underwrite its general insurance products, following a full review of its insurance business.
From July 1, 2026, Tower will replace IAG as underwriter for Westpac’s house, contents, car, and vehicle insurance products.
Sarah Hearn (pictured), Westpac NZ managing director of product, sustainability and marketing, said the partnership brings a strong local focus.
“We’re pleased to be partnering with an innovative locally owned and operated general insurer with a strong customer focus,” Hearn said in a media release.
“For many of our customers, a home and their valuable possessions will be the most important things they ever own, and they understandably want peace of mind that they’ll be well looked after should anything go wrong. That’s a responsibility we take incredibly seriously.”
Tower’s strengths
Hearn said Tower impressed with its digital offering, competitive pricing, and climate-risk expertise.
“Tower have been helping New Zealanders for more than 150 years and have been named Insurer of the Year at the Canstar Home and Contents Awards for the last two years running,” she said.
“Among the new functionality, our customers will be able to view data-driven personalised insurance insights through Westpac digital banking. Tower is a leader in using advanced data and analytics to assess the risks of individual properties being impacted by climate-related events. We’re keen to work with them on advocating for national adaptation frameworks and more transparency around natural hazard risk data.”
Hearn added that existing Westpac insurance customers do not need to take any action, as current agreements remain in place. She also thanked IAG for its longstanding general insurance partnership.
Why it matters for mortgage advisers
While the change does not affect mortgages directly, it links insurance more closely with lending conversations. For advisers, this means:
- Clients arranging mortgages through Westpac will likely encounter Tower products alongside their loan applications
- Tower’s digital tools and climate-risk data could help advisers frame property risk and affordability discussions
- Greater integration of banking and insurance may streamline client onboarding but also requires clear advice around cover options
For mortgage advisers, the takeaway is that borrowers may start asking more questions about insurance at the same time as their mortgage – making it an area to stay across.
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