Dáil Éireann Debate, Tuesday - 20 June 2023
253. Deputy Róisín Shortall asked the Minister for Finance if he will respond to matters raised in correspondence regarding mortgage protection (details supplied); if the person applying for mortgage protection in this case may be facing discrimination on health grounds; if his Department will issue any additional guidance in relation to the rights of the person in this case; and if he will make a statement on the matter. [29692/23]
Amharc ar fhreagraI note that the question relates to an individual application for mortgage protection insurance. As the Deputy will appreciate, I am unable to comment on individual cases.
Moreover, neither I, nor the Central Bank of Ireland, can intervene in the provision or pricing of insurance products. This position is reinforced by the EU framework for insurance companies (the Solvency II Directive).
Notwithstanding the above, I am aware of the issue of access to financial services – including mortgage protection insurance – for individuals with historic or underlying health conditions. This is a very sensitive matter for many in our community.
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. In addition, 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.
In order to assist clients who have had difficulty acquiring life cover due to a pre-existing illness or condition, Brokers Ireland has published a register containing contact details of brokerages who have experience in advising on life cover in this area. This is available on its website: 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.
Furthermore, with regard to mortgage protection insurance and home ownership, 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. For individuals, including those with historic or underlying 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.
Finally, 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). The FSPO is a statutory official who acts as an independent arbiter of disputes which consumers may have with their insurance company or other financial service provider. The FSPO can be contacted either by email at info@fspo.ie or by telephone at 01-567-7000. Investigations by the FSPO are free of charge to the complainant.
