Dáil Éireann Debate, Tuesday - 18 April 2023
411. Deputy Ivana Bacik asked the Minister for Finance his views on the situation facing chronically ill persons who are excluded from life insurance cover; and if he has plans to ensure that their families are compensated upon their death; and if he will make a statement on the matter. [17921/23]
View answerI am aware of the issue of access to certain insurance services – including life insurance – for individuals with underlying health conditions and chronic illnesses. This is a very sensitive matter for many in our community.
As the Deputy will appreciate, neither I, nor the Central Bank of Ireland, can intervene in the provision or pricing of insurance products, nor can we compel any insurer operating in the Irish market to provide cover to specific individuals or businesses. This position is reinforced by the EU framework for insurance companies (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 life cover 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.
My officials have specifically contacted Insurance Ireland in relation to the Deputy’s question. It has advised that generally, when a consumer is taking out a life assurance/income protection or serious illness policy, a company is obliged to assess the risk involved as part of the application, so the existence or potential of any medical condition will have to be taken into consideration. This can result in a postponement of a final decision, particularly where the consumer is awaiting test results, displaying symptoms of a medical condition or has an underlying medical condition. However, different insurers can use slightly different criteria to assess this risk.
Insurance Ireland operates a free Insurance Information Service for members of the public, which deals with general queries in relation to insurance cover and this can be accessed by calling 01 676 1820 or emailing feedback@insuranceireland.eu. In addition, Brokers Ireland has access to a wide range of providers and products, and can provide assistance to customers who are experiencing insurance accessibility issues. Brokers Ireland can be contacted at: 01 661 3067 or at insurancequeries@brokersireland.ie.
