The government has been pushed to explore and explain the quality and availability of insurance for people with sickle cell by one of its MPs.
Claire Hazelgrove, Labour MP for Filton and Bradley Stoke, raised the matter in Parliament, increasing the awareness of coverage for people with this and other pre-existing conditions.
Frequently raised across the market
Protection insurance coverage for those with sickle cell disease or who carry the sickle cell trait has been frequently raised across the market over the last few years.
It was raised publicly by Sheun Oke, now managing partner and CEO of Emergenzz Financial Services, in 2022.
Following this, in 2023 Alan Knowles, co-managing director at Cura Financial Services, told Health & Protection a solution may lie with learnings from similar solutions for people living with HIV.
Insurer Zurich also engaged with Oke about the situation, but explained there were several challenges for insurers and reinsurers to address.
The issue also ties-in with concerns about coverage for those with pre-existing conditions, which has been a key concern of the Financial Conduct Authority (FCA).
In March last year the regulator added cover for customers who have pre-existing medical conditions to its pure protection market study.
The importance of this was highlighted by the FCA’s landmark consumer research showing almost one in three (29%) people have a medical condition when they buy protection insurance.
When asked by Health & Protection about the issue last summer, FCA director of insurance Matt Brewis said the regulator was “keen to understand” what the effect of pre-existing condition exclusions enacted by insurers are having on the protection market.
‘No specific assessment made’
Hazelgrove (pictured) asked HM Treasury what assessments it has made of the adequacy of the availability, affordability and terms of insurance for people diagnosed with sickle cell disease and carrying the sickle cell trait?
Responding to Hazelgrove, Economic Secretary to the Treasury Lucy Rigby acknowledged the government “has not made a specific assessment regarding insurance for individuals with sickle cell disease”.
However, Rigby added the government “recognises the important role of insurance products in building the financial resilience of consumers and protecting them when things go wrong.
“The government’s Financial Inclusion Strategy seeks to close gaps in protection and ensure that the insurance sector is well-placed to support the financial wellbeing of households and vulnerable customers,” she said.
“The Equality Act 2010 generally prohibits discrimination based on certain personal characteristics. However, the law accepts that some exceptions, relating to age and disability, apply for insurance.
“The Act stipulates an insurance provider cannot refuse to cover potential consumers or charge more for insurance as a result of these characteristics, unless they base their risk assessment on relevant information from a reliable source and, in the case of the disability exception, it is reasonable for the insurer to refuse cover or charge more.
“However, the Financial Conduct Authority, as the independent regulator, requires firms to ensure their products offer fair value. The FCA has been clear that it will be monitoring firms, and, where necessary, it will take action.”
Rigby also noted that since 2021, the FCA has required firms providing travel insurance to signpost consumers with pre-existing medical conditions to a directory of specialist providers if they are declined cover, offered cover with an exclusion, or charged a significantly higher premium based on a pre-existing medical condition.
