Not upheld: unfair premium increase and payment method change complaint against Great Lakes Insurance UK Limited

Decision detail

Summary

Mr C complained that Great Lakes Insurance increased his premiums and changed the payment method from direct debit to recurrent card payments. The ombudsman found that premium pricing is a legitimate commercial decision based on underwriting criteria, and Great Lakes provided a detailed breakdown of the increase. The payment method change was reasonable and properly communicated to all customers, with protections in place through an automatic updater service. The ombudsman did not uphold the complaint as no evidence demonstrated unfair treatment or financial loss.

The Ombudsman's reasoning

The ombudsman determined that setting insurance premiums is a commercial decision for insurers based on established underwriting criteria, and the FOS does not dictate what insurers should charge. Great Lakes provided a proportionate and fairly explained breakdown of the increase. The payment method change was reasonable, properly communicated, and mitigated by an automatic updater service. No evidence demonstrated unfair treatment or financial loss to Mr C.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website