Marks & Spencer Pet Insurance: Excessive Premium Increases

sarahpops

I have just received my annual pet insurance renewal notice from M&S (underwritten by Royal Sun Alliance) and it has risen to a whopping £160 a month, yes you read that right, that is almost £2000 a year and over 12 times what it was when I took the policy out 7 years ago.

My dog is just 7 years old and has a ongoing illness (arthritus) so I have made claims on the policy.

I made an official complaint to M&S after my renewal notice last year and was told, in their final response, that there is nothing they can do, that the prices increases are based on his age, breed (labrador), location and the general rise in vets fees.

With another 50% increase this year they are now pricing me out of being able to afford to continue the policy, which I took out in good faith and my dog is now totally un-insurable with anyone else.

I have complained again this time round and am not expecting a positive reponse and wondered if anyone else has had similar experience with M&S and what my chances might be taking this to the financial ombudsman?

Any advice would be very welcome!! Thanks.

_Andy_

they can charge what they want - just because you feel the price isn't acceptable, doesn't make it wrong, nor does it mean there is a valid complaint.

You can take anything to the Ombudsman once you have exhausted the complaints procedure but it isn't going to achieve anything other than wasting your time and theirs.

rs65

I'm not sure if the ombudsman will look at a complaint about the level of renewal premiums.

sarahpops wrote: »

I made an official complaint to M&S after my renewal notice last year and was told, in their final response, that there is nothing they can do

Did the final response say you could go to the ombudsman?

sarahpops

Thanks, yes they sent me a letter to say that was their final decision and and that i should take it to FO if still unhappy. FO website says the following and I'm wondering if I can argue that the risk has not risen 50% each year and that they are increasing prices to deter me from renewing:

'We sometimes see cases where a policyholder complains that an insurer has substantially increased the premiums when renewing the policy. In these complaints, we look at the circumstances of the case to decide why the premium was increased.

'If we find that there was a significant increase in the risk that the policy was covering, we usually say that the insurer was simply exercising its commercial judgement. But we are likely to uphold a complaint, if we are satisfied that the insurer increased the premium to deter the policyholder from renewing.'

ACG

Pet insurance isnt something i deal in so take my comments with a pinch of salt, however between you and the insurance company there seems to be quite a few reasons to warrant an increase:
The dog is older,
You have made claims,
The dog has Arthritis.
Vet charges have increased.

I would imagine the claims and the arthritis alone are enough for a sizeable increase.

As Andy has said, your views on whether its fair or not dont really have any baring on the decision. If there is sufficient reason to increase the premiums to cover the expected risks then theyre allowed to.

If your unable to get insurance elsewhere then that surely shows that there is a risk as no other company are prepared to put it on their books.

Its difficult to do at times, but you have to take the emotional side out of it and look at it from a business perspective (which is what it is to M&S/RSA and any other insurance company).

rs65

sarahpops wrote: »

Thanks, yes they sent me a letter to say that was their final decision and and that i should take it to FO if still unhappy. FO website says the following and I'm wondering if I can argue that the risk has not risen 50% each year and that they are increasing prices to deter me from renewing:

You could, any you have nothing to lose by doing so. It doesn't cost you.

The downside is the timescales. The FOS won't resolve this by renewal date. In fact, you will be beyond the date for taking last years complaint to the FOS so you would have to raise a fresh complaint with insurers regarding this years. Unless FOS recognise the urgency, it could be 6 months plus before you get a decision.

So, what do you do in the meantime? Renew and hope the FOS give a favourable response? Do they have the power to tell insurers to reduce premiums.

Do you go elsewhere and not have arthritis cover? you would need to see what the arthritis treatment would cost you a year and balance this with premiums.

Last option, go uninsured and save the £160 a month - effectively self insure.