Not upheld: Other regulated complaint complaint against Exeter Friendly Society Limited

Decision detail

Summary

Mrs S complained that Exeter Friendly Society Limited unfairly terminated her private medical insurance policy covering overseas residence, which she had held since 1990. Exeter notified her in December 2024 that it would cease providing cover for members living outside the UK after the December 2024 renewal, offering 12 months' notice and a six-month premium waiver. Mrs S argued this was unfair and unethical, and that Exeter had breached its regulatory duties including the Consumer Duty. The ombudsman found that the policy terms explicitly permitted non-renewal, that Exeter had made no promise of lifetime cover, and that the notice period and premium waiver constituted fair treatment compliant with regulatory obligations. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that while Exeter had no contractual obligation to continue the annually renewable policy, it was required to comply with regulatory obligations including treating customers fairly and delivering good outcomes. The ombudsman determined that Exeter complied with these obligations by: (1) providing 12 months' notice, which was fair and gave adequate time for informed decision-making; (2) recommending Mrs S seek financial advice; and (3) waiving six months' premium. The ombudsman noted that insurers are entitled to make commercial decisions to exit markets and that the FOS cannot dictate which products insurers must offer. Although sympathetic to Mrs S's disappointment, the ombudsman found no unfair treatment or regulatory breach.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website