Tower has announced the launch of Cyclone Response Cover, offering peace of mind and extra financial security to the people of Samoa this cyclone season.
Cyclone Response Cover provides a rapid cash pay-out when a customer is impacted by a high wind speed cyclone event, regardless of damage and without the need for an insurance assessor’s signoff.
Tower Head of Pacific Distribution Joanne Rasmussen says, Cyclone Response Cover will help dramatically increase insurance accessibility, particularly as climate change impacts increase over time.
“In the Pacific, less than 10% of families have insurance. Cyclone Response Cover will lessen the burden on local communities and their support networks, enabling them to recover from cyclone damage quickly. We’re doing what’s right by our customers and communities.”
Tower customers have a choice of three product options, ranging from ST$1000 to ST$10,000 based on the amount of cover they feel they need to fast-track their recovery after a cyclone event.
“You are guaranteed to be paid out, if a Cyclone meets certain criteria in your area, no questions asked and no insurance assessment needed. We aim to process payments within seven days,” says Ms Rasmussen.
Samoa is heavily exposed to weather events, including cyclones. At times, locals are left to rely on their savings, borrow money or seek cash elsewhere to start their recovery during a cyclone crisis.
In 2018, Tower, known as National Pacific Insurance (NPI) at that time, paid out more than ST$300k in claims to customers after Cyclone Gita. In 2014, ST$1.3m was paid to Tower customers following Cyclone Ian. Just one year earlier, in 2012, Cyclone Evan made landfall in Samoa, the impact on the country was significant with approximately ST$3m in claims paid out by Tower.
“When we began officially rebranding from National Pacific Insurance to Tower last year, we promised the people of Samoa that the Tower name would come with new and improved offerings,” says Ms Rasmussen.
“We are so proud to be delivering on that promise so strongly already, with the launch of a Cyclone Response Cover pilot in Tonga in September and now with the same product in Samoa, before the end of 2023.”
Tower’s parametric insurance product was recently showcased on the world stage in Ghana with the United Nations Capital Development Fund (UNCDF) at the International Conference for Inclusive Insurance 2023. Ms Rasmussen says Tower’s presence at the conference is a testament to the business’s emphasis on innovation and market-leading approach to insurance in the Pacific.
Cyclone Response Cover was first trialled in Fiji for the 2022/2023 cyclone season in collaboration with the United Nations Capital Development Fund (UNCDF), under its flagship Pacific Insurance and Climate Adaptation Programme.
In November, Tower announced a partnership with global Insurtech CelsiusPro Group to upgrade the Cyclone Response Cover IT platform. The new platform will be available to Tower customers next year.
Alongside Tower’s online quote to buy capabilities, My Tower platform and adoption of digital kiosks for Pacific communities, the partnership with the CelsiusPro Group signifies the next milestone for insurance innovation in the Pacific, with the IT platform making it simpler for Tower customers to access and manage their parametric cover.