Dáil Éireann Debate, Tuesday - 26 September 2023
161. Deputy Patrick Costello asked the Minister for Finance what actions he has taken to prevent discrimination by financial institutions in providing mortgage protection to individuals who have had previous illnesses, such as cancer; what options such individuals have to seek mortgage protection and a mortgage; and if he will make a statement on the matter. [41118/23]
View answer185. Deputy Bríd Smith asked the Minister for Finance if there are any current schemes or plans to introduce schemes to help people who, due to serious medical illness and history of same, have failed to obtain mortgages from banks and other lending institutions; and if he will make a statement on the matter. [41326/23]
View answerI propose to take Questions Nos. 161 and 185 together.
The Financial Consumer Protection Roadmap, which was published by my Department on 13 September 2023, addressed this issue in the context of the consumer protections available in Ireland.
Firstly, the Deputy should note that in June of this year Insurance Ireland and its members published a Code of Practice for Underwriting Mortgage Protection Insurance for Cancer Survivors, which is expected to be operational by the end of the 2023.
Insurers will disregard a cancer diagnosis where treatment ended more than 7 years prior to application (or more than 5 years if the applicant was under 18 at the time of diagnosis). The Code will apply to mortgage cover applications of up to €500,000 for a principal private residence. Insurance Ireland estimates that this threshold covers over 90 per cent of mortgage protection policies in the market. My officials continue to engage with Insurance Ireland regarding the implementation of the Code, and will closely monitor the outcomes.
It may also interest the Deputy to know that 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/.
The Department of Finance is also closely monitoring work by the European Commission to develop a Code of Conduct on access to financial services for cancer survivors, by early 2024. This objective is set out in ‘Europe’s Beating Cancer Plan’ which was published in 2021, and 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”.
Through ‘Europe’s Beating Cancer Plan’, the Commission will closely examine practices in the area of financial services (including insurance) from the point of view of fairness towards cancer survivors in long-term remission. The Commission will engage in dialogue with businesses to develop a code of conduct to ensure that developments in cancer treatments and their improved effectiveness are reflected in the business practices of financial service providers to ensure that only necessary and proportionate information is used when assessing the eligibility of applicants for financial products, notably credit and insurance linked to credit or loan agreements.
In ‘Europe's Beating Cancer Plan: Implementation Roadmap’, the timeline for the objective “Address fair access for cancer survivors to financial services” is as follows: 2021 - Study on situation in Member States; 2022 - Stakeholder engagement, additional studies; 2023 Draft Code of conduct; 2024 Code agreed, with the Code of Conduct established in 2024.
In relation to cases where a person has been refused a mortgage by a bank or another Central Bank regulated mortgage provider, eligible borrowers, including where the applicant can provide proof of insufficient mortgage offers of finance from two regulated financial providers, can apply to the Local Authority Home Loan Scheme, which falls within the remit of the Department of Housing Local Government and Heritage.
