Not upheld: unreasonable premium increase complaint against Pinnacle Insurance Limited

Decision detail

Summary

Mr M complained that Pinnacle Insurance Limited unreasonably increased his pet insurance premium from £23.77 to £26.86 when he moved house a short distance within the same general postcode area. Pinnacle justified the increase by reference to their underwriting guide, which showed the new full postcode represented a higher risk category based on their claim experience. The ombudsman did not uphold the complaint, finding that address changes are a legitimate basis for mid-term premium adjustments and that Pinnacle had applied its underwriting guide consistently without singling out Mr M for different treatment compared to other customers in similar situations.

The Ombudsman's reasoning

The ombudsman confirmed that address changes are a legitimate mid-term adjustment issue that can fundamentally change risk for an insurer. The FOS role is to ensure consumers are not singled out or treated differently from others in the same situation, not to regulate underwriting practices or pricing. Pinnacle demonstrated it applied its underwriting guide consistently and did not treat Mr M differently from any other customer making a similar house move. The new postcode genuinely represented a higher risk category, so the premium increase was justified.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website