Not upheld: unfair pricing, lack of transparency in premium calculation, poor customer service complaint against Admiral Insurance (Gibraltar) Limited

Decision detail

Summary

Mr Y and Mrs Y complained about a significant premium increase on their multi-car motor insurance renewal with Admiral and demanded transparency about how the premium was calculated. Mr Y spent considerable time on the phone trying to understand the discounts applied, experiencing poor service including transfers between departments. Admiral paid £100 compensation for the service failures but did not uphold the pricing complaint. The ombudsman found that Admiral met all FCA requirements for renewal disclosures, has no obligation to reveal commercially sensitive pricing calculations, and the premium was correctly calculated and consistently applied. The ombudsman upheld the £100 compensation as fair and reasonable but did not require any additional remedy.

The Ombudsman's reasoning

The ombudsman found that Admiral complied with FCA requirements by disclosing last year's premium and encouraging consumers to shop around. While the ombudsman acknowledged Mr Y's frustration about lack of transparency, it determined that insurers have no obligation to disclose commercially sensitive pricing calculations. The competitive insurance market allows consumers to shop around freely. The ombudsman verified that Admiral's quoted premiums were calculated correctly and consistently applied to all customers in similar positions. The £100 compensation for service failures was deemed fair and reasonable under FOS guidance.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website