Peadar Tóibín (Meath West, Aontú)
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317. To ask the Minister for Finance to examine the case for putting in place a national insurance company, or legislate for commercial companies, to provide insurance for people in situations similar to persons (details supplied). [34249/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Neither I as Minister for Finance, 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 (the Solvency II Directive).

Officials in my Department engage regularly with Insurance Ireland – the official industry body – on a range of insurance related issues. Insurance Ireland have advised that insurers are obliged to assess the specific risk involved as part of any individual’s application for insurance, including mortgage protection policies. For individuals with medical conditions, if a higher risk is identified as a result of this assessment, the policy will be adjusted accordingly, and that cover may be declined if the applicant poses a risk beyond the insurer’s threshold.

As the Deputy may also be aware, under existing legislation (Section 126 of the Consumer Credit Act 1995), lenders are permitted to provide a mortgage in situations where a borrower may be unable to obtain mortgage protection insurance, or where such insurance is unduly costly compared to that payable by borrowers generally. This is an important provision for individuals, including those living with certain medical conditions, and who may experience difficulties acquiring mortgage protection insurance when securing a home loan, to be aware of.

However, it may also be the case that, in circumstances where there is no specific statutory obligation on a mortgage lender to arrange for mortgage protection insurance in association with a housing loan, an individual mortgage lender may, as a matter of its own commercial policy, still require a mortgage borrower to put in place such an insurance policy as a condition for obtaining mortgage credit. This is a commercial decision as opposed to a statutory requirement for an individual mortgage lender and it is not possible for me to instruct lenders on their commercial lending policies or their commercial decisions on any individual mortgage application, including the insurance and other security they require either in respect of the borrower or the secured property in relation to a mortgage loan.

Furthermore, where an individual is not satisfied with how a regulated firm is dealing with them in relation to the provision of insurance or they believe that the regulated firm is not following the requirements of the Central Bank’s codes and regulations or other financial services law, they should make a complaint directly to the regulated firm. If the consumer is still not satisfied with the response from the regulated firm, he or she can refer the complaint to the statutory Financial Services and Pensions Ombudsman (FSPO). The FSPO acts as an independent arbiter of disputes that consumers may have with their insurance company or other financial service provider.

It may also interest the Deputy to know that Brokers Ireland has published a register containing contact details of insurance brokers who have experience in advising on life cover, to assist clients who have had difficulty acquiring mortgage protection insurance due to a pre-existing illness. This is available at: www.brokersireland.ie/life-cover-pre-existing-illnesses/

Insurance Ireland also operates a free information service for those customers who have queries, complaints or difficulties in relation to obtaining insurance cover, which can be contacted at feedack@insuranceireland.eu.

It is important to note that there would be additional costs to the State in establishing its own insurer, including the need for such a company to hold adequate capital reserves, as well as to employ suitably qualified individuals. There is also a risk that such a measure could reduce competition in the insurance market for certain risks should the State be viewed as an insurer of last resort. In conclusion, adequate safeguards are in place for individuals with pre-existing health conditions when applying for mortgage protection insurance and this is supported by an independent complaints process.