Ms Jacqueline Thornton:

I thank the Deputy for the question. The first thing we need to be clear about is that regardless of the condition, be it an historic eating disorder or something completely different, there is no one cohort of customers suffering from a condition who would be automatically declined for mortgage protection life cover. Each applicant who submits an application will be assessed individually on his or her individual circumstances to understand the risk posed to an insurance firm. The insurance firm then applies underwriting standards based on the information it needs, including very sound medical data and up-to-date information not just on medical matters and conditions but also on the latest medical technology and treatment options available. A decision is then taken as to whether the level of risk is in line with the risk appetite of the insurer and current book the insurer has. In some instances, that risk will be deemed to be too high and beyond the appetite of the insurer. In those cases, the explanations and reasons for the decline will be set out to a customer in the response he or she receives.

As we understand it, and as has been confirmed by the Central Bank to the committee, there are, in effect, very low levels of decline in mortgage protection in Ireland. For those who are declined, there is a major impact because they need to get mortgage protection to secure a mortgage. A provision in the Consumer Credit Act 1995 makes it very clear that if an individual cannot obtain life cover, such as the constituent to which the Deputy referred, or can only do so at a cost that is unreasonably high, an exemption from the requirement can be granted. That is something that can be discussed with a lender. I note a recent statement regarding some Banking & Payments Federation Ireland, BPFI, data, which stated that only 0.05% of mortgage application approvals do not proceed because of a lack of mortgage protection. This indicates that the level of decline is very low.