Lifetime pet insurance is being cancelled at renewal

webcaz2488

We have had a letter to say our pet insurance is being cancelled despite taking out lifetime cover. The letter states that the underwriter is no longer providing the cover which is why the policy is being cancelled.
Where do we stand with this as now we will be stuck getting a new policy that will cover pre-existing conditions.
Our cat is about to turn 10 and doesn't have any treatment or ongoing diagnosed health conditions but I'm aware anything that has been noted on her records in the past will not be covered either many insurers which is why we chose life cover so we wouldn't have this problem!
Is there anything we can do?
Any advice welcome - TIA

TELLIT01

You need to read the T&C in the original lifetime cover policy and see exactly what it says.  You will probably find an escape clause in there for the insurer to do what they have done. 

The insurers other option would potentially to have increased the premium to an unaffordable amount, which would be much the same thing.

sheramber

What company is it? 

On another forum it was reported that their insurance company was no longer covering old pets, but would  continue to cover them  for six months to try and find another company to take it over. 

Many years ago AXA stopped selling pet insurance but were required to find another company to take over policies , including pre existing conditions.

NCI took over the policies. 

webcaz2488

We are with PetWise and the underwriten by West Bay Insurance Ltd.
We have been offered a 6 month extension for the same premium up front whilst they attempt to find someone else so it sounds similar.
I don't know what best to do. If there's a risk they won't be able to continue our policy in 6 months and something else could happen with our cat in the meantime which wouldn't then be covered by another insurer.
When you buy life cover this isn't a position you expect to be in.
Is there any weight on the insurer to ensure another underwriter is found for the existing policies or can they just say at the end of the extension that there is no more cover?sheramber said:

What company is it? 

On another forum it was reported that their insurance company was no longer covering old pets, but would  continue to cover them  for six months to try and find another company to take it over. 

Many years ago AXA stopped selling pet insurance but were required to find another company to take over policies , including pre existing conditions.

NCI took over the policies. 

LynB88

I am in the same situation at the moment. I am with MiPet Cover, but they are also now underwritten by West Bay Insurance. When I queried why the policy was being cancelled, I was told that it was because the underwriter was at full capacity. I can't understand how this is my problem. Why take on the under writing knowing that you don't have the capacity? 
I checked the policy wording around cancellation of the policy. No mention was made of anything pertaining to the underwriter.
I have actually submitted a complaint to the Financial Ombudsman. How is this fair to us as consumers that are looking at possible expenses running in to the 1000's of ££! Especially after going the extra effort of taking out a life time policy. 

ThorOdinson

Might be worth complaining and then escalating to the FSO. They are probably hoping you just accept it.

DullGreyGuy

LynB88 said:

I am in the same situation at the moment. I am with MiPet Cover, but they are also now underwritten by West Bay Insurance. When I queried why the policy was being cancelled, I was told that it was because the underwriter was at full capacity. I can't understand how this is my problem. Why take on the under writing knowing that you don't have the capacity? 
I checked the policy wording around cancellation of the policy. No mention was made of anything pertaining to the underwriter.
I have actually submitted a complaint to the Financial Ombudsman. How is this fair to us as consumers that are looking at possible expenses running in to the 1000's of ££! Especially after going the extra effort of taking out a life time policy. 

Insurers are legally required to hold capital to ensure they have enough money to be able to payout the potential future claims including in a "1 in 200 year event" with a risk margin then placed on top. Depending on the regulating authority insurers may have to submit plans to the prudential regulator to show what capacity they have and illustrate that the capital they hold is sufficient. There are ways insurers can write more business with the same amount of capital like buying reinsurance from another company so the premiums and claims are shared between the two either on an equitable basis (proportional) or where the reinsurer just takes over after claims exceed certain levels (non-proportional). 

There can be a host of reasons why an insurers capacity changes year on year... worsening results means they need to hold more capital that they dont have, worsening results in the company or segment means the regulator starts capping capacity, reinsurers aren't willing to renew treaties on acceptable terms, new business eats up all your capacity and regulators refuse you to exceed your plan numbers. All of these things can result in companies not being able to offer renewal terms. 

Ultimately you have a right to submit a complaint to the Ombudsman after having received a Final Response from the company in question however its unlikely that the ombudsman would say the insurer should breach its regulatory requirements however they may say they should have helped find an alternative arrangement

sheramber

DullGreyGuy said:

LynB88 said:

I am in the same situation at the moment. I am with MiPet Cover, but they are also now underwritten by West Bay Insurance. When I queried why the policy was being cancelled, I was told that it was because the underwriter was at full capacity. I can't understand how this is my problem. Why take on the under writing knowing that you don't have the capacity? 
I checked the policy wording around cancellation of the policy. No mention was made of anything pertaining to the underwriter.
I have actually submitted a complaint to the Financial Ombudsman. How is this fair to us as consumers that are looking at possible expenses running in to the 1000's of ££! Especially after going the extra effort of taking out a life time policy. 

Insurers are legally required to hold capital to ensure they have enough money to be able to payout the potential future claims including in a "1 in 200 year event" with a risk margin then placed on top. Depending on the regulating authority insurers may have to submit plans to the prudential regulator to show what capacity they have and illustrate that the capital they hold is sufficient. There are ways insurers can write more business with the same amount of capital like buying reinsurance from another company so the premiums and claims are shared between the two either on an equitable basis (proportional) or where the reinsurer just takes over after claims exceed certain levels (non-proportional). 

There can be a host of reasons why an insurers capacity changes year on year... worsening results means they need to hold more capital that they dont have, worsening results in the company or segment means the regulator starts capping capacity, reinsurers aren't willing to renew treaties on acceptable terms, new business eats up all your capacity and regulators refuse you to exceed your plan numbers. All of these things can result in companies not being able to offer renewal terms. 

Ultimately you have a right to submit a complaint to the Ombudsman after having received a Final Response from the company in question however its unlikely that the ombudsman would say the insurer should breach its regulatory requirements however they may say they should have helped find an alternative arrangement

which they are doing.

We are with PetWise and the underwriten by West Bay Insurance Ltd.
We have been offered a 6 month extension for the same premium up front whilst they attempt to find someone else 

DullGreyGuy

sheramber said:

DullGreyGuy said:

LynB88 said:

I am in the same situation at the moment. I am with MiPet Cover, but they are also now underwritten by West Bay Insurance. When I queried why the policy was being cancelled, I was told that it was because the underwriter was at full capacity. I can't understand how this is my problem. Why take on the under writing knowing that you don't have the capacity? 
I checked the policy wording around cancellation of the policy. No mention was made of anything pertaining to the underwriter.
I have actually submitted a complaint to the Financial Ombudsman. How is this fair to us as consumers that are looking at possible expenses running in to the 1000's of ££! Especially after going the extra effort of taking out a life time policy. 

Insurers are legally required to hold capital to ensure they have enough money to be able to payout the potential future claims including in a "1 in 200 year event" with a risk margin then placed on top. Depending on the regulating authority insurers may have to submit plans to the prudential regulator to show what capacity they have and illustrate that the capital they hold is sufficient. There are ways insurers can write more business with the same amount of capital like buying reinsurance from another company so the premiums and claims are shared between the two either on an equitable basis (proportional) or where the reinsurer just takes over after claims exceed certain levels (non-proportional). 

There can be a host of reasons why an insurers capacity changes year on year... worsening results means they need to hold more capital that they dont have, worsening results in the company or segment means the regulator starts capping capacity, reinsurers aren't willing to renew treaties on acceptable terms, new business eats up all your capacity and regulators refuse you to exceed your plan numbers. All of these things can result in companies not being able to offer renewal terms. 

Ultimately you have a right to submit a complaint to the Ombudsman after having received a Final Response from the company in question however its unlikely that the ombudsman would say the insurer should breach its regulatory requirements however they may say they should have helped find an alternative arrangement

which they are doing.

We are with PetWise and the underwriten by West Bay Insurance Ltd.
We have been offered a 6 month extension for the same premium up front whilst they attempt to find someone else 

@sherambler - I was reply to LynB88 who has hijacked this thread with a similar issue but from a different seller  than the OP. There is no statement that this different intermediary has offered a similar extension but it could be happening. 

sheramber

DullGreyGuy said:

sheramber said:

DullGreyGuy said:

LynB88 said:

I am in the same situation at the moment. I am with MiPet Cover, but they are also now underwritten by West Bay Insurance. When I queried why the policy was being cancelled, I was told that it was because the underwriter was at full capacity. I can't understand how this is my problem. Why take on the under writing knowing that you don't have the capacity? 
I checked the policy wording around cancellation of the policy. No mention was made of anything pertaining to the underwriter.
I have actually submitted a complaint to the Financial Ombudsman. How is this fair to us as consumers that are looking at possible expenses running in to the 1000's of ££! Especially after going the extra effort of taking out a life time policy. 

Insurers are legally required to hold capital to ensure they have enough money to be able to payout the potential future claims including in a "1 in 200 year event" with a risk margin then placed on top. Depending on the regulating authority insurers may have to submit plans to the prudential regulator to show what capacity they have and illustrate that the capital they hold is sufficient. There are ways insurers can write more business with the same amount of capital like buying reinsurance from another company so the premiums and claims are shared between the two either on an equitable basis (proportional) or where the reinsurer just takes over after claims exceed certain levels (non-proportional). 

There can be a host of reasons why an insurers capacity changes year on year... worsening results means they need to hold more capital that they dont have, worsening results in the company or segment means the regulator starts capping capacity, reinsurers aren't willing to renew treaties on acceptable terms, new business eats up all your capacity and regulators refuse you to exceed your plan numbers. All of these things can result in companies not being able to offer renewal terms. 

Ultimately you have a right to submit a complaint to the Ombudsman after having received a Final Response from the company in question however its unlikely that the ombudsman would say the insurer should breach its regulatory requirements however they may say they should have helped find an alternative arrangement

which they are doing.

We are with PetWise and the underwriten by West Bay Insurance Ltd.
We have been offered a 6 month extension for the same premium up front whilst they attempt to find someone else 

@sherambler - I was reply to LynB88 who has hijacked this thread with a similar issue but from a different seller  than the OP. There is no statement that this different intermediary has offered a similar extension but it could be happening. 

MiPet states it is an annual policy  which must be renewed each year.  Does that give them a way out?

At the renewal date the limit is fully reinstated and the condition(s) will continue to be covered. This is subject to the insurer inviting the policy renewal and payment of premiums by the due date. No further cover will be provided beyond the cancellation or expiry date of the policy. Please be aware that you need to renew your policy each year for cover to remain in force.