Dáil Éireann Debate, Tuesday - 22 June 2021
223. Deputy Colm Burke asked the Minister for Finance if he has legislative plans to ensure equal access to financial services and products for cancer survivors in view of circumstances in which cancer survivors, particularly those who suffered cancer at a young age, are being denied access to mortgages, bank loans or insurance (details supplied); and if he will make a statement on the matter. [33183/21]
View answerI am keenly aware of the issue of equal access to financial services and products for those who previously have had cancer, and note the statistics supplied, which relate to difficulties experienced by some in accessing life insurance. I am also aware of reports of some customers experiencing issues in obtaining mortgage protection cover as a result of having higher risk conditions particularly in the context of COVID-19, however this usually relates to certain chronic conditions.
With regard to insurance, it should be noted that neither I, nor the Central Bank of Ireland, can intervene in the provision or pricing of insurance products or have the power to direct insurance companies to provide cover to specific individuals or businesses. This position is reinforced by the EU framework for insurance (the Solvency II Directive). Consequently, I am not in a position to direct companies as to what terms and conditions apply in relation to cover.
However, I have asked my officials to examine this and to engage with Insurance Ireland, the representative body for the insurance industry in this country, so as to assess the extent of the issue in Ireland for cancer survivors, and if it has become more prevalent in the context of the COVID-19 pandemic. In doing this work, they will also assess the legislative measures taken in the jurisdictions mentioned, including their application and scope. My officials will also monitor any relevant developments at the EU level as part of their work on this issue, and in this context, I understand that the European Commission published a Plan, “Europe’s Beating Cancer Plan”, last February, which includes an initiative for 2021-2023 to “Address fair access for cancer survivors to financial services (including insurance), via a code of conduct and a reflection on long-term solutions”.
On the issue of access to mortgage protection cover, Insurance Ireland has indicated that while most customers are still able to get life; critical illness; or mortgage protection insurance, it is aware of a small number of individual cases where a final decision on some applications is being postponed for a period where applicants have a COVID-19-related health condition. However, it stated that while unaware of any cases where life cover has been denied, such policies are assessed on a case-by-case basis and that underlying health conditions are taken into account by the underwriters, as was the case pre-COVID-19.
Separately, my officials recently engaged on the issue of mortgage protection insurance with the Banking and Payments Federation Ireland (BPFI). From correspondence received, the BPFI has indicated that only 0.05% of mortgage applications approved by its members did not proceed to draw-down due to a lack of mortgage protection insurance. Moreover, it is my understanding that under Section 126 of the Consumer Credit Act 1995, lenders can provide a mortgage in situations where a borrower may be unable to obtain mortgage protection insurance, or where such insurance is unduly costly compared to that payable by borrowers generally.
Where a consumer feels that they are being treated unfairly, they have the option of making a complaint to the Financial Services and Pensions Ombudsman (FSPO). The FSPO is a statutory official who 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 01-567-7000.
Finally, it is also worth noting that Insurance Ireland operates a free Insurance Information Service for those who have queries, complaints or difficulties in obtaining insurance, and it can be accessed at feedback@insuranceireland.eu.
