Tower Insurance justified the increase by taking into consideration various risks such as sea surge, landslips, earthquakes, and flooding for Taylor’s Burwood home. However, Taylor, whose property is several kilometers away from the sea, expressed confusion over Tower’s assessment of sea surge risk.
Despite challenging the assessment and requesting evidence to support it, Taylor found that Tower was unwilling to provide specific information. He conducted his own research into the likelihood of a sea surge reaching his property, concluding that the risk was minimal based on the water’s path through an estuary, river, and residential areas.
While Tower claimed to base its risk assessment on close to 200 million data points, Taylor believed that his research contradicted some of the company’s findings. He highlighted discrepancies in sea surge data and questioned the accuracy of Tower’s risk estimation.
Taylor’s efforts to obtain information from Tower were met with refusal on the grounds of commercial sensitivity. He called for a more transparent process involving government agencies to verify insurance companies’ risk assessments.
Tower defended its high sea surge risk rating for Taylor’s property, citing nearby water systems like the Avon River and Travis Wetland Nature Heritage Park as potential sources of flooding during a sea surge event. The company emphasized that only a small percentage of properties with elevated risk levels would experience premium increases, with most seeing modest adjustments.
Tower refrained from sharing detailed data to simplify customers’ understanding of risks and protect commercial interests. The insurer maintained that its risk rating system was based on thorough analysis of historical and potential scenarios, aimed at accurately assessing insurance risks for properties.
The dispute between Taylor and Tower underscored the importance of transparent risk assessment processes in the insurance industry, with calls for government oversight to ensure fairness and accuracy in determining premiums based on natural hazards.
