I am aware of the issue of equal access to financial services, such as mortgage protection cover, for those who have recovered from cancer, including breast cancer. At the outset, it should be noted 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 to provide cover to specific individuals. This position is reinforced by the EU framework for insurance (the Solvency II Directive).
Notwithstanding this, officials in my Department have been considering issues around access to insurance for cancer survivors, and have consulted Insurance Ireland on this matter. It has advised that insurers must take the existence of or potential for medical conditions such as cancer into consideration when assessing applications, but that in general, cancer survivors are not declined for insurance. I understand that the ability to offer cover, and the price quoted, will depend on an applicant’s individual circumstances. In the case of cancer, this includes whether the applicant has ever been diagnosed with cancer, the type, when it went into remission, and whether medical treatment is still ongoing. These factors are individually assessed by insurers in order to understand the level of risk involved on a case-by-case basis. Insurance Ireland also advised that any rating that may be applied due to a past cancer diagnosis is usually time-bound, and generally speaking, would no longer apply after ten years, subject to there being no relapse or further medical complications. However, it did state that for certain types of cancer, this may be shorter.
In addition, my officials have been examining discussions on this subject at EU level. I note that Europe’s Beating Cancer Plan, a strategy published by the European Commission in February, 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”. The Department will closely monitor any outputs from this work as it continues to consider relevant issues in this area, and to engage with Insurance Ireland.
Finally, with regard to mortgage protection insurance and home ownership, the Deputy may wish to note that under Section 126 of the Consumer Credit Act 1995, 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. In this regard my officials have consulted the Banking and Payments Federation Ireland (BPFI) which has indicated that it estimates that, on an annual basis, 2% of mortgage approvals to consumers have been granted a waiver, and only 0.05% of mortgage applications approved by its members did not proceed to draw-down due to a lack of mortgage protection insurance. Importantly, consumers who feel they have been treated unfairly by any financial service provider, including an insurer, can make a complaint to the Financial Services and Pensions Ombudsman (FSPO).
