Thomas Gould
Question:449. Deputy Thomas Gould asked the Minister for Finance for an update on provision to assist type 1 diabetics in progressing with a mortgage given difficulties in securing mortgage protection insurance. [37969/23]
View answerMonday, 11 September 2023
Questions (449)
Written answers
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, nor can we compel any insurer operating in the Irish market to provide cover to specific individuals or businesses. This position is underpinned by the EU framework for insurance companies (the Solvency II Directive).
It is my understanding that generally insurers use a combination of actuarial 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.
Moreover, my understanding is that different insurers do not use the same combination of factors. Accordingly, the cost and availability of cover varies across the market, and will be priced in accordance with firms’ prior claims experience.
Notwithstanding this, I am aware of the sensitive issue for many individuals in our community with chronic or underlying health conditions, including diabetes, in accessing mortgage protection cover.
It may interest the Deputy to know that in order to assist clients who have had difficulty acquiring life cover due to a pre-existing illness, Brokers Ireland has published a register containing contact details of Brokers who have experience in advising on life cover in this area. This is available at: brokersireland.ie/life-cover-pre-existing-illnesses/.
In addition, Insurance Ireland operates an Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance, which can be accessed by ringing 01-676-1820 or at feedback@insuranceireland.eu.
Finally, with respect to mortgage protection insurance in the context of home ownership, there is a provision under Section 126 of the Consumer Credit Act 1995 whereby lenders can provide a mortgage in situations where a borrower may be unable to obtain life insurance, or where such insurance is unduly costly compared to that payable by borrowers generally. For individuals, including those with chronic health conditions, who may experience difficulties acquiring mortgage protection insurance when securing a home loan, this is also an important provision to be aware of and to discuss with their lender.