Not upheld: unfair pricing on policy renewal complaint against Wakam

Decision detail

Summary

Mr B complained about a significant price increase on his pet insurance renewal, from £39.50 to £59.16 per month (approximately 50%). Wakam explained that premiums increase annually due to factors including rising veterinary costs, pet age, and claims history. The ombudsman reviewed Wakam's confidential pricing information and confirmed the quote was calculated correctly and fairly applied to all customers in similar circumstances. The ombudsman upheld that pricing is a commercial decision for insurers and found no evidence of unfair treatment, so the complaint was not upheld.

The Ombudsman's reasoning

The ombudsman determined that while the price increase was substantial, it was calculated fairly and consistently applied to all customers in Mr B's circumstances. The increase was driven by legitimate factors: the pet's age, claims history, and general market increases in veterinary costs. The ombudsman confirmed that pricing is a commercial judgment for insurers to make, and the FOS role is only to determine if a consumer was treated fairly or differently. Since Wakam applied the same pricing model to all customers and provided evidence supporting the calculation, no unfair treatment occurred.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website