Not upheld: policy review outcome and adequacy of information disclosure complaint against ReAssure Life Limited (trading as ReAssure)

Decision detail

Summary

Mr and Mrs V complained about the outcome of a 2024 policy review of their whole of life insurance policy with ReAssure, which proposed a reduction in sum assured if premiums remained unchanged. They also raised concerns about potential mis-sale and claimed they should have been informed of possible changes when ReAssure took over administration. ReAssure partially upheld the complaint, acknowledging an error in the review letter and paying £300 compensation, but rejected mis-sale liability as the original advice came from another firm. The ombudsman found the complaint not upheld, determining that ReAssure provided sufficient information about the policy's reviewable nature and future premium requirements in prior statements, particularly the 2018 annual statement which contained clear projections of future costs.

The Ombudsman's reasoning

The ombudsman found that ReAssure provided sufficient information to Mr and Mrs V about the policy's reviewable nature and future premium requirements, particularly in the 2018 statement which contained stark projections. The policy is designed to be reviewable, so proposing changes was not unfair. The only error was in the 2024 review letter's omission of premium details, which ReAssure had already compensated with £300. The ombudsman rejected arguments about mis-sale (as this was the responsibility of the original advising firm), surrender value concerns (as the policy is protection-based, not an investment), and disadvantage from continued premiums during the complaint (as Mr and Mrs V could have surrendered the policy at any time).

How this compares

Source

Read the original decision on the Financial Ombudsman Service website