Not upheld: unfair premium increase at renewal complaint against Admiral Insurance (Gibraltar) Limited

Decision detail

Summary

Mr G complained that Admiral unfairly increased his motor insurance premium at renewal from approximately £790 to £1,040 in July 2025, despite his circumstances remaining unchanged and his driving record improving. Admiral applied a discount reducing the premium to approximately £900, but Mr G remained dissatisfied and complained. The ombudsman found that Admiral had fairly calculated the premium using updated risk assessment models and pricing algorithms, and had treated Mr G consistently with other customers. The complaint was not upheld, as insurers are entitled to revise their pricing models and are not required to disclose commercially sensitive pricing information.

The Ombudsman's reasoning

The ombudsman reasoned that while Mr G's personal circumstances had not changed, insurers are entitled to regularly review and update their risk calculation models, and previous pricing does not necessarily reflect current risk assessments. Admiral provided commercially sensitive evidence demonstrating its risk assessment methodology, which the ombudsman reviewed independently. The ombudsman found no evidence of incorrect information in the premium calculation, and noted that retention discounts are a standard commercial tool rather than evidence of inflated original pricing. The ombudsman concluded that Admiral applied the same pricing principles to Mr G as it would to any other customer in similar circumstances.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website