Upheld: PPI mis-selling complaint against BROWN & BROWN INSURANCE BROKERS (UK) LIMITED

Decision detail

Summary

Mrs B complained that B&B cancelled her home insurance policy without authorization, leaving her unknowingly uninsured for approximately one year, including valuable jewelry of sentimental importance. The cancellation resulted from B&B's data breaches, including unauthorized sharing of her personal data with third parties and allowing those parties to make account changes without her permission. When Mrs B discovered the cancellation, B&B failed to promptly assist in securing alternative cover, and the complaint handling process was delayed and unclear. The ombudsman upheld the complaint, finding B&B's actions caused considerable distress to the vulnerable Mrs B, both immediately and with longer-term impacts on her trust in the insurance system. Compensation of £650 was awarded in addition to the £100 already offered.

The Ombudsman's reasoning

The ombudsman established jurisdiction under FCA DISP rules, finding that holding and failing to keep personal information safe falls under 'administering or failing to administer a service' and 'the manner in which a respondent has administered its business'. B&B's mistakes caused Mrs B considerable distress, particularly given her vulnerability. The impact was both short-term (shock, embarrassment, worry about uninsured valuables) and longer-term (loss of faith in the system, anxiety about future dealings with insurers). B&B failed to provide adequate support when the problem was discovered, leaving Mrs B to rely on family assistance. The complaint handling process also had deficiencies including delayed logging and unclear communication.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website