Since the onset of COVID-19 in particular, I am aware of reports of some customers experiencing difficulties in obtaining mortgage protection cover as a result of having conditions deemed to be of a higher risk. As the Deputy will appreciate, while I have sympathy for the situation detailed, neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products or have the power to direct insurance companies to provide cover, including mortgage protection, to specific individuals or businesses. This position is reinforced by the EU Solvency II Directive insurance framework.
Notwithstanding the above, both I and Minister of State Fleming have consistently and publicly stated that in the context of COVID-19 we expect insurance firms to treat their customers fairly, honestly, and in accordance with the Central Bank’s Consumer Protection Code. Indeed, working to protect consumers during and after the COVID-19 pandemic is a commitment included in both the Programme for Government and Action Plan for Insurance Reform . Accordingly, the Government continues to engage with the insurance industry in relation to how it responds to, and works to protect its customer’s needs.
Minister of State Fleming held a meeting with Insurance Ireland, the representative body for such providers, in late February, which was also attended by An Tánaiste as well as Ministers of State English and Troy. The issue of mortgage protection insurance was discussed at this meeting and following it, Insurance Ireland wrote to myself and Minister of State Fleming. In that correspondence, it noted that given the ongoing pandemic, it is understandable that COVID-19 would be included in a new application. It said that it is unlikely that once the applicant has fully recovered from an illness that it would have an impact on the policy they are seeking to take out, although this does depend on the individual case, the severity of the impact of the infection and any residual complications. While aware of recent media reports about individual cases where cover has been declined, Insurance Ireland has not had reports of individuals being declined cover following recovery from COVID-19 from among its membership. It also noted that the continued rollout of the COVID-19 vaccination programme will have a positive impact in assessing the risk for individuals. Furthermore, Insurance Ireland will continue to keep in close contact with its members on this issue, which I welcome. That said, the Government will continue to engage bilaterally with the insurance industry on this issue. In this regard, I would note the recent meetings between the CEOs of the main insurers and Minister of State Fleming, who again raised this issue.
Finally, it is worth recalling that where somebody feels they have been treated unfairly by a particular insurance provider, they have the option of making a complaint to the Financial Services and Pensions Ombudsman (FSPO). The FSPO acts as an independent arbiter of disputes which consumers may have with their insurance company or other financial service provider. The FSPO can be contacted either by email at info@fspo.ie or by telephone at 01-567-700.
