Tower discontinued its insurance offerings for commercial farms, shifting its focus to direct personal and small business lines insurance.

The company will maintain coverage for lifestyle blocks but will no longer insure commercial rural enterprises with gross annual income exceeding $10,000 on farms larger than 10 hectares.

Commercial rural clients will be directed to Aon New Zealand's AonAgri division, a move expected to benefit Tower's shareholders and provide specialised insurance solutions for its former customers.

The change, effective from Feb. 1, 2024, aligns with Tower's strategy to phase out legacy technology systems in New Zealand.