Not upheld: unfair pricing / premium increase complaint against HDI Global Specialty SE

Decision detail

Summary

Mr H complained that HDI Global Specialty SE unfairly increased his pet insurance premium from £50 to £54.99 when he changed his address, arguing the move of only two miles within the same city did not materially change his risk profile. HDI defended the increase based on its risk assessment of the new area. The ombudsman found that HDI had clearly disclosed in its policy terms that address changes could affect premiums and had applied a consistent formulaic calculation based on its risk model. The ombudsman concluded there was no evidence of unfair treatment or calculation error and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman determined that while the FOS cannot dictate what price an insurer should charge or what factors it should consider, it can assess whether a consumer has been treated fairly compared to other policyholders in similar circumstances. HDI clearly disclosed in its policy terms that address changes could affect premiums and applied a consistent formulaic calculation based on its risk assessment. There was no evidence that Mr H was treated differently or less favourably than other policyholders with the same circumstances, nor was there evidence of calculation error or unfair treatment.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website