Claims costs for Tower’s New Zealand business, excluding large loss events, are about $NZ1.9 million ($1.72 million) higher than last year, the insurer says in an update covering the four months to July 31.

The update comes before the November release of full-year results for the year to September 30. It made a half-year loss of $NZ8.2 million ($7.44 million).

“As reported by other industry players, New Zealand motor insurance is experiencing an increase in claims frequency,” Tower says. “This is further exacerbated by various constraints in the repair industry driving average costs higher. These industry trends and other inflationary factors continue to negatively impact claims costs.”

The impact of two winter storms that hit the South Island in July will not exceed $NZ1.2 million ($1.09 million). Claims for the Kaikoura earthquake will be finalised this year.

Meanwhile, Jeff Wright has been appointed CFO, effective from September 18. He has previously worked for Suncorp and was Territory Insurance Office CFO from January 2011 to December 2014.

Tower has reiterated its support for Vero’s appeal against the New Zealand Commerce Commission’s block on its takeover bid.