Barclays Insurance terminated PPI, Mortgage Protection Insurance - Can I complaint?

Ikebana_uk1

I have been holding a Mortgage protection insurance since 2008 by paying nearly £60 to Barclays insurance (Monument Life Insurance). They notified me of the termination of the Mortgage protection insurance. Whilst there might be terms for the insurer to terminate the insurance, I feel this is an arbitrary decision. I am very surprised that FCA has accepted the termination with only 6 month notice (ending 30 June 2023).  The policy holders have been paying for unforeseen  events for years and years.  Complainted on the phone, Barclays sent me a leaflet of Financial ombudsman to escalate the complaint. I am thinking if I am in a feeling to request of reimbursement of insurance premium of the last few years. I wonder if anyone in this forum are in the same situations? or Any advice would be appreciated.   (I am also posting this to PPI as it is related to PPI though not strictly about PPI reclaim). 

DullGreyGuy

Your lucky to have had it this long, many policies were cancelled/not renewed by insurers in 2020, those that did offer renewal terms often tripled the premiums or more.

The problem is that PPI is a short term annual policy which renews each year. There is no obligation on either party to offer/accept the renewal and premiums can move freely.

The full fat version is PHI not PPI/ASU and this is a form of long term insurance where a single policy lasts until a defined date (normally 65th birthday) and for this class of insurance an insurer cannot arbitrarily cancel the policy exc non-payment or fraud (note PHI doesnt cover unemployment but some allow you to add an unemployment cover).


At the end of you Home or Car insurance policy do you demand the repayment of premiums because you didnt make a claim?

dunstonh

 Whilst there might be terms for the insurer to terminate the insurance, I feel this is an arbitrary decision.

It is not arbitrary.  It is commercial.    PPI doesn't have the level of cross-subsidy any more.  PPI became unfashionable.  So, the number of insurers pulled out and in turn the number of reassurers pulled out.      The distributor cannot do much if the insurer or reassurer doesn't want to offer cover any more.   Barclays had a choice to either find an alternative or to knock it on the head.  They chose the latter and that is understandable given the current market.  Finding an alternative for the tiny number of people that still have it just isn't commercially viable.  Especially when the revised premiums would almost certainly been much higher than you were paying before.   In a hard market, premiums go up and insurers pull out.

 I am very surprised that FCA has accepted the termination with only 6 month notice (ending 30 June 2023). 

There is no reason for the FCA to intervene on something like this.

 I am thinking if I am in a feeling to request of reimbursement of insurance premium of the last few years. I wonder if anyone in this forum are in the same situations?

There is no logic for asking for a return of premiums as a) no wrongdoing and b) cover was provided for the premiums paid.

You have been free to buy your annual cover from others in previous years and remain free to do so now.