Context
Whilst complaints about insurance pricing have fallen during the last year the Financial Ombudsman Service (FOS) is still regularly hearing from customers who feel they have not had a clear explanation for the increase in the price of their insurance.
Key points to note
- In the majority of cases FOS finds that the insurer has acted fairly but has seen some cases where customers still felt that they had not understood the reason for the price quoted.
Over the past three years the Service has seen complaints about:
- Cases where premiums have gone down which has led people to question whether they were treated fairly in the past.
- Customers questioning the rise in their premium and finding it was raised in error, for example, a previous enquiry about the policy being incorrectly recorded as a claim.
- Premiums quoted being higher than the previous year, even where they have shopped around, including cases on motor insurance where people used their cars less during the pandemic.
To help businesses resolve complaints with their customers without reference to the Service, the FOS have:
- Published information for customers and businesses on the website outlining the approach on insurance pricing issues;
- Worked with insurers to share what has been learnt from casework, to help them understand what more can be done to be transparent about pricing; and
- Worked with consumer groups and regulatory bodies sharing insight on casework, showing how they resolve complaints where things do go wrong, or where communication can be clearer.
The percentage of complaints upheld by the Financial Ombudsman Service has fallen from 29% to 19% between 2019 and 2022.
Next actions
None – for information and awareness.