Not upheld: unfair premium increases and unfair policy terms complaint against HDI Global Speciality SE

Decision detail

Summary

Mr F complained that HDI unfairly increased his premiums and that its six-month claims submission clause was unfair. He claimed the broker had assured him that the insurer wouldn't usually increase premiums based on claims, but learned otherwise when his premiums increased. The ombudsman found that HDI calculated premiums fairly and did not treat Mr F differently from other policyholders, and that the six-month clause is standard industry practice. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman determined that insurers are entitled to set prices based on risk assessment and that the six-month claims submission clause is standard industry practice and caused no detriment. The assurances about premium increases were allegedly made by the broker, not HDI directly, and do not constitute an outright guarantee. Premium calculations were verified as fair and Mr F was not treated differently from other policyholders in his situation. The basis for premium calculations can change annually and vary by policyholder.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website