Not upheld: unfair decline of policy renewal complaint against AXA Insurance UK Plc

Decision detail

Summary

Mr and Mrs E complained that AXA unfairly declined to renew their home insurance policy in September 2025 without providing specific reasons. Mr E believed the decline was linked to AXA's earlier decision not to renew his motor insurance. AXA maintained it was unable to offer cover based on its underwriting criteria and had treated Mr E fairly. The Ombudsman found that AXA acted fairly, as insurers have commercial discretion to decide which risks to cover and must only treat customers consistently according to their underwriting criteria. No regulatory obligation exists for insurers to disclose specific decline reasons, and the previous motor insurance decision was considered separately. The complaint was not upheld.

The Ombudsman's reasoning

The Ombudsman determined that insurers have commercial discretion to decide which risks to cover, but must treat customers fairly and consistently. AXA provided confidential underwriting information demonstrating that Mr E was treated the same as any other customer in similar circumstances. There is no regulatory obligation for insurers to disclose specific reasons for decline, as doing so could allow customers to circumvent underwriting criteria. The fact that Mr E had previously held cover with AXA does not obligate AXA to continue offering cover beyond the agreed policy term.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website