Not upheld: unfair pricing and charges complaint against UK Insurance Limited (trading as Churchill Insurance)

Decision detail

Summary

Mr I complained about a 50% increase in his home insurance renewal premium with Churchill Insurance, from £420 to £620. After contacting Churchill, he received a reduced offer of £475 following a discretionary retention discount and excess increase. Mr I claimed he found cheaper Churchill policies online ranging from £360-£440 but could not purchase them. The ombudsman found that all lower quotes were either based on incomplete vehicle information or different policy terms (higher excesses), making them not like-for-like comparisons. Churchill's pricing was within relevant rules and the ombudsman did not uphold the complaint.

The Ombudsman's reasoning

Each insurer is entitled to take its own view of risk and set prices accordingly. Churchill's pricing was within relevant rules. The apparent price discrepancies were explained by differences in policy terms (excesses) and incomplete information in earlier quotes. When like-for-like information was provided, quotes matched at £475. Churchill's failure to initially locate the £440 offer was a mistake but had no material impact on the outcome.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website