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If your insurance renewal looks different this year, you’re not alone.
Over the past year, most major general insurers in New Zealand have removed traditional multi-policy discounts sometimes referred to as “bundling” discounts. These were the discounts applied when customers held more than one policy with the same insurer, such as house and contents, or car and contents.
While this shift has been unfolding across the industry for some time, it is now beginning to show up in renewal documents for many customers.
Most recently, Tower removed its multi-policy discount from 28 January 2026. As a result, members who previously received this discount may now see changes reflected in their renewal documentation.
Why Is This Happening Across the Industry?
Multi-policy discounts were originally introduced to reward customers who placed multiple policies with the same provider.
However, in recent years the Financial Markets Authority (FMA) has increased its focus on conduct, pricing transparency and ensuring customers receive the benefits they are promised. That broader regulatory scrutiny has prompted insurers to review discount structures and how consistently they are applied.
Consumer NZ has also commented publicly that complex discount systems can create confusion for customers, particularly when eligibility criteria are not clearly understood or consistently reflected in pricing.
Against that backdrop, several insurers have moved toward simplifying pricing models and reducing layered discount structures.
Tower has stated that, despite investing in system and process upgrades to ensure eligible customers received the correct discount, they were not able to get it right every time and therefore made the decision to remove the discount.
All New Zealand’s major insurers have made similar changes, reflecting a broader move toward clearer, more straightforward pricing.
In short, this is not a change isolated to one brand. It represents a sector-wide shift influenced by regulatory expectations and industry review.
Does This Automatically Mean Premiums Are Increasing?
Not necessarily. Insurance premiums are influenced by multiple factors, including:
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Claims experience
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Natural hazard modelling
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Reinsurance costs
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Inflation in building and repair costs
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Individual risk profile
The removal of a discount changes how pricing is presented, but it is only one part of the overall premium calculation.
That said, if you previously received a multi-policy discount, you may notice:
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The discount line no longer appears on your renewal
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The premium breakdown looks different
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The total premium changes
The key is to focus on the overall premium and level of cover, rather than the presence or absence of a specific discount label.
What Should Members Do at Renewal?
Changes like this are a timely reminder to actively review your cover.
Consider:
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Check your sums insured: Ensure rebuilding and replacement amounts remain appropriate.
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Review optional benefits: Confirm you’re paying for the features that matter most to you.
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Ask questions if anything is unclear: Insurers should be able to explain how your premium has been calculated and what has changed.
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Compare where appropriate: With pricing structures evolving across the market, renewal time is a natural opportunity to reassess value.
A Broader Move Toward Simpler Pricing
Across financial services more broadly, there has been a continued shift toward clearer and more transparent pricing models.
Rather than relying on layered discounts that depend on meeting multiple criteria, some insurers are moving toward simpler pricing approaches that aim to reduce complexity and improve consistency.
For members, the takeaway is not simply that discounts are disappearing, but that pricing structures are evolving in response to regulatory focus and industry review.
Staying informed, reviewing policies regularly and understanding how your premium is determined remain the most effective ways to navigate these changes.
As always, we will continue to monitor developments across the industry and provide context where they may affect members.
Final Thought from Us
Our focus is on making sure members have clear, practical information when industry changes occur. Taking time to understand your cover and the total cost at renewal remains one of the most effective steps you can take.
While multi-policy discounts have been removed across much of the general insurance sector, members who access house, contents and landlord insurance through Tower and our Better Off Together program continue to receive the Member-only member discount on these eligible policies.
Understanding how that applies to your situation is also important when reviewing your cover at renewal.
Sources:
Consumer: Three house insurers stop their multi-policy discounts
Quashed: The End of Multi-Policy Discounts in NZ? Why You Must Shop Around in 2026
Insurspy: New Zealand insurer warned after multi-policy discounts not applied, overcharging thousands
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