Hastings have cancelled my policy..help

ben_edwards2612

Has any body heard further about this? I have had one measly attempt for compensation offered (£30 on a £550 policy). My policy was cancelled after 6 months originally without any compensation offered. I have replied asking for a more reasonable level of compensation or a letter of deadlock. Has anyone else got anything out of them?

hebergummi

After a year and a couple of letters to the financial ombudsman I have been compensated by Hastings direct with £143. This covers the loss from my premium and £50 compensation. So it was worth doing!

raskazz

This was just the latest in a long string of c0ck-ups and maladministration by Hastings. If the insurance trade press is to be believed its parent company IAG is considering pulling the plug.

RabbitMad

in the words of nelson muntz

"Ha ha"

http://news.bbc.co.uk/1/hi/business/7529403.stm

Hastings have got a £750,000 fine for doing this

raskazz

RabbitMad wrote: »

in the words of nelson muntz

"Ha ha"

http://news.bbc.co.uk/1/hi/business/7529403.stm

Hastings have got a £750,000 fine for doing this

The 'Final Notice' (i.e. the FSA's thorough report on it's findings) is available here:

http://www.fsa.gov.uk/pubs/final/hastings.pdf

It's quite an interesting read (well, for people like me it is!). Section 2.19 stood out for me:

"The underwriting department checked the premium calculations for Highway products and did not identify any errors"

Which leads me to believe that they didn't even realise the possibility that their systems were quoting on business which would not have been acceptable at any price under their agreement with Highway. Ridiculous.

MarkyMarkD

What was that, nine months ago, about there being no chance of a legal challenge on this because what Hastings were doing was completely OK, raskazz?

Oscar_The_Grouch

Are you gloating there, Marky???

Personally, I'm looking forward to seeing how Hastings are going to build this into their December return to the FSA on "Treating Customers Fairly"!!!!! I certainly wouldn't want to work for their Compliance Department at the mo!!!

I did some quick sums and on the basis that the average underquote being as reported by the FSA, it would only have cost them about £1.1m to fund the shortfall. Strange how the amount of the fine before the quick settlement discount is startlingly close to this figure!!!

raskazz

MarkyMarkD wrote: »

What was that, nine months ago, about there being no chance of a legal challenge on this because what Hastings were doing was completely OK, raskazz?

I never said it was 'completely OK'. For example I did say earlier in the thread:

"Still clearly a massive !!!!-up though. I used to work for them and I have to say that from my experience with them I am not surprised in the least that they have made such a mess of this"

and

"Push them for as much as you can get"

If you care to reread the thread what I also said was that the cancellation term allowing the insurer to cancel by giving notice is not unlawful. Any 'legal challenge' by a policyholder would fail, because - as the FSA state in the Final Notice - the cancellation was legal under contract law.

The fine was imposed due to breaches of the FSA's 'Treating Customers Fairly' regime (specifically because the firm failed to consider all viable options to resolve the issue, placed their own interests ahead of their customers' and mis-sold ancillary products on rebroked policies), not because cancellation by the insurer is illegal in itself.

raskazz

Oscar_The_Grouch wrote: »

Are you gloating there, Marky???

He really shouldn't be if he is, see the above post - oh, and this from the FSA's Final Notice (s.2.21):

"Hastings decided to invoke a clause under the terms of the insurance policy which allowed it, legally, to cancel the policy subject to providing seven days' written notice of the cancellation to the customer."

I suggest MarkyMarkD reads the Final Notice, it's quite interesting for insurance saddos like me.

Oscar_The_Grouch

I've read the Final Notice too. It does make good reading, provided you don't work for them!! Knowing what Marky is like with his knowledge from previous posts, I wouldn't be at all surprised if he's read it too.

I particularly liked point 2.83 which states:

As a result of these reviews, Hastings has adopted a number of recommendations for improvement to its processes including reorganising its Board of Directors, senior management and its compliance regime.

That sounds very much like someones head got chopped for this one!!