Not upheld: Travel / life insurance claim disputes complaint against Aviva Life & Pensions UK Limited (formerly Friends Provident)

Decision detail

Summary

Mr B complained that a whole of life insurance policy sold to him by Friends Provident (now Aviva) in 1995 was mis-sold because he expected fixed cover and premiums for life, but received a 2025 review letter requiring either a premium increase from £15 to £44.73 per month or a reduction in cover from £40,000 to £18,278.01. The ombudsman found the policy was suitable at sale and the terms clearly indicated it was reviewable with potential for changes, so it was not mis-sold. Although Aviva failed to provide sufficient information about rising policy costs in review communications (costs exceeded premiums from around 2013/14), the ombudsman concluded Mr B would not have taken different action even with better information, as he valued the cover for family protection and had health issues limiting alternative options. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that although the policy was suitable at the time of sale and the terms clearly indicated it was reviewable with potential for changes, Aviva failed to provide sufficient information about policy costs and performance in review communications, particularly before the 2025 review. However, the ombudsman concluded this failure would not have led Mr B to take different action because: (1) Mr B valued the life cover for family protection and wanted to maintain it; (2) he had health issues making alternative cover difficult and expensive to obtain; (3) he would likely have continued the policy as long as the premium remained affordable and provided the original level of cover; and (4) even with better information, Mr B would not have proactively sought alternatives while the existing premium could still provide the original cover level.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website