Bank move highlights growing borrower demand for property hazard information
Westpac New Zealand has begun surfacing property-specific natural hazard information directly inside its banking app, giving customers applying for home insurance quotes instant access to flood, earthquake, landslide, and sea surge exposure data compiled by Tower Insurance.
The feature went live as Westpac's new underwriting partnership with Tower took effect, replacing IAG for new house, contents, and car policies.
Survey exposes a knowledge gap
The rollout is backed by fresh research commissioned by Westpac and conducted by Ideally, surveying 529 New Zealanders in June.
While 90% said having access to natural hazard risk information was extremely or very important, only 63% of current homeowners said they had actively sought it out before buying their existing property. The gap was starkest among longer-tenured owners: 91% of those who bought in the past two years researched hazard risk, compared with just 35% of those who purchased more than a decade ago.
Renters were also notably less confident navigating this information than homeowners.
Sarah Hearn (pictured), Westpac NZ's managing director of product, sustainability, and marketing, said the bank wanted to close that gap.
"We want to help homeowners carefully consider their risks," Hearn said in a media release, adding that integrating insurance directly into online banking supports faster, better-informed decisions.
The stakes for lenders are rising too. The Reserve Bank's May 2026 Financial Stability Report flagged insurer retreat from flood-prone areas as an emerging risk to bank balance sheets, noting around 60,000 homes nationwide are currently uninsured.
Resilience lending adds a broker angle
For advisers, the update carries practical relevance beyond insurance. Westpac's Greater Choices Home Loan already offers up to $50,000 in interest-free lending over five years for resilience upgrades, including flood-proofing, drainage improvements, and raising homes above identified flood thresholds. Pairing that lending option with readily available exposure data could support more informed conversations with clients on flood-prone or coastal properties.
New Cotality research adds urgency: buyers are increasingly accepting flood exposure for lower prices, with affected properties now outpacing the broader market in value growth. As Cotality's Craig Dargusch put it, "Affordability wins today, but risk shapes tomorrow."
Tower Insurance chief executive Paul Johnston said the personalised approach to risk reflects how premiums should be calculated.
"Tower's approach means customers' insurance cover is personalised to their property," Johnston said, noting Tower has been named Canstar's Home and Contents Insurer of the Year for three consecutive years.
Existing Westpac insurance customers do not need to take any action, with current IAG-underwritten policies continuing unchanged.
Stay informed with the latest housing market trends and mortgage insights — subscribe to our free daily newsletter.
