Dáil Éireann Debate, Thursday - 19 October 2023
176. Deputy Alan Dillon asked the Minister for Finance to outline the supports in place for a person who has been approved a mortgage but refused mortgage protection based on medical grounds (details supplied); and if he will make a statement on the matter. [45947/23]
View answerAt 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 reinforced by the EU framework for insurance companies (the Solvency II Directive). As the Deputy will appreciate, I am also unable to comment on individual cases.
Notwithstanding this, I am aware of the issue of access to mortgage protection insurance for individuals with historic or underlying health conditions in the context of buying a home, which is an extremely sensitive matter. In order to be as helpful as possible, my officials contacted Insurance Ireland regarding the circumstances of this case.
It has advised that when consumers are taking out a life assurance policy, companies will have to take the existence or potential of medical conditions into consideration, and assess each case individually. Consequently, consumers will generally be asked questions about various of conditions. However, different insurers can use slightly different criteria to assess this risk.
I understand that in some instances, the risk presented by the applicant outweighs the risk appetite of the insurer, and the application may be declined. In such situations, Insurance Ireland has advised that applicants should request a detailed breakdown from the insurer as to why their medical history has led to a decline for cover, if they have not already received this.
In more general terms, I understand that there are financial brokers working on behalf of consumers who have specific conditions which may affect their applications for life cover, as they would be better placed to understand which insurer might be more likely to provide cover in these circumstances. Brokers Ireland has established a register of advisors/brokers who specialise in sourcing cover for individuals who have difficulty in obtaining life cover due to a pre-existing illness, which therefore may be useful. This is available at: brokersireland.ie/life-cover-pre-existing-illnesses/.
In addition, 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. According to Insurance Ireland, the lender could also accept an occupational Death in Service cover, if appropriately assigned to the mortgage. These are important options for individuals, including those with historical health conditions, to be aware of and to discuss with their lender if experiencing difficulties acquiring mortgage protection insurance.
Finally, Insurance Ireland operates a free Insurance Information Service for members of the public, which deals with general queries in relation to insurance cover. This service can be accessed by constituents by calling 01-676-1820 or by emailing feedback@insuranceireland.eu.
