Not upheld: Other regulated complaint complaint against Aviva Insurance Limited

Decision detail

Summary

R, a residents' management company, complained that Aviva charged extortionate premiums dating back to 2019 for property insurance. After changing management in 2024, R discovered alternative cover at significantly lower cost and challenged Aviva's pricing. Aviva defended its pricing based on complex risk factors and high flood risk assessment, which differed from publicly available data. The ombudsman found that insurers are entitled to apply their own risk assessments and pricing methodologies, and that Aviva priced consistently with its approach for similar risk profiles. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman found that insurers are entitled to apply their own risk assessments and pricing methodologies, even if they differ from other available data or competitors' pricing. The fact that another insurer offers significantly lower premiums does not mean the higher premium is unfairly priced, as insurers use different discount structures, bandings, and risk models. Aviva demonstrated it priced the cover consistently with its approach for similar risk profiles. The ombudsman noted that pricing is commercially sensitive and insurers have discretion in how they factor in risk elements such as flood protection works.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website