Dáil Éireann Debate, Thursday - 30 September 2021
163. Deputy Louise O'Reilly asked the Minister for Finance if his attention has been drawn to the situation facing many cardiac patients, who are no longer able to access insurance products as a result of their medical condition, particularly after Brexit, given many insurance providers no longer offer services to the Irish market; and if he will make a statement on the matter. [47239/21]
View answerI understand that the Deputy is referring to life and mortgage protection insurance products in her question. At the outset, it is important to note 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 as to what terms and conditions apply in relation to the provision of cover to specific individuals or businesses. This position is reinforced by the EU framework for insurance (the Solvency II Directive).
It is my understanding that generally, insurers use a combination of rating factors in making their individual decisions on whether to offer such insurance products and what terms to apply. These can include age; health; family medical history; occupation; and lifestyle. In addition, these may be determined or linked to the policy duration. In the case of mortgage protection policies, these tend to be over the lifetime of the repayment schedule. In addition, my understanding is that different insurers do not use the same combination of rating factors. Accordingly, prices and availability of cover varies across the market, and will be priced in accordance with firms’ prior claims experience.
With regard to the specific situation of cardiac patients, my officials contacted Insurance Ireland to get a view. It noted that life insurance products are designed to provide financial support to customers in the event of death or ill-health and insurers are keen to ensure that cover is available where it is needed. They set out that it is not standard practice to automatically decline cover for any cohort of applicants, including those with cardiac conditions. They noted that an insurer is obliged to assess the risk involved as part of any application for a life insurance policy and this will be specific to the individual applicant, and that the availability of this product depends on a number of factors. In this regard, applicants are asked questions about various conditions, like asthma, bronchitis, strokes and any specific cardiac conditions in order for the insurers to assess the risk involved. They concluded that all applicants are assessed against the same criteria, and if higher risk is identified as a result of this assessment then the policy will be adjusted accordingly, and that cover may be declined if the applicant poses a risk beyond the insurer’s threshold.
With regard to the points made in relation to the withdrawal of the UK from the EU, as the Deputy will be aware it is no longer part of the Single Market, including for insurance. As part of the extensive preparations for the end of the withdrawal transition period, European and domestic regulatory authorities, including the Central Bank of Ireland, instructed relevant UK/Gibraltar firms to make and implement contingency plans to ensure that they could continue to provide services to their EU customers post-Brexit. I understand from the Central Bank that a significant majority of these undertakings implemented such measures. Therefore, these insurers should be able to continue to offer insurance business to Irish customers. Insurance Ireland also informed my officials that it is unaware of any insurer selling life insurance in Ireland that has exited due to Brexit.
Finally, 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 01-567-7000.
