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The Law Commission: ‘Consumer Insurance (Disclosure and Representations) Project’ and Draft Bill

Posted on 3rd December 2010 by info@pnh-alliance.org.uk

Insurance Bill to be introduced into Parliament

The Law Commission published a report on Consumer Insurance (Disclosure and Representations) in December 2009 setting out their recommendations to seek to ensure that consumers provide the right information to industry prior to taking out a policy. Essentially it places the onus on industry to ask the right questions.

The Commission also published a draft bill of which the Government has been supportive and are preparing a response. The Bill is likely to be introduced to Parliament in the early part of 2011.

Please find a link to the Law Commission project below:

http://bit.ly/gF2gQS.

Further questions answered in the House of Lords regarding health insurance

Posted on 6th October 2010 by info@pnh-alliance.org.uk

On 9th September Lord Sassoon answered two further questions from Lord Crisp on health insurance.

09/09 – House of Lords – Written Answers: Health: Cancer and Health: Insurance

Lord Crisp: To ask Her Majesty’s Government what assessment they have made of certain cancer patients having to cease their treatment when their insurer refuses further funding even though the patient is advised by their doctor that they would still benefit from the treatment.

Lord Crisp: To ask Her Majesty’s Government what assessment they have made of the practice of certain health insurance companies saying they offer “full cancer cover” but ceasing to cover patients’ treatment because in their view the insured’s condition has changed from being acute to chronic even though the patient’s doctor advises that they still need the same treatment.

Lord Sassoon: The FSA is responsible for regulating insurance companies. Insurance companies are required to comply with the FSA’s TCF (Treating Customers Fairly) requirements. The FSA also monitors and publishes data on consumer complaints, including in relation to private medical insurance. This can be accessed at: http://www.fsa.gov.uk/pages/Library/Other_publications/commentary/previous_complaints/index.shtml.

Lord Crisp: To ask Her Majesty’s Government whether they will ask the proposed Consumer Protection and Markets Authority to conduct an early review into the terms and conditions of private health insurance sold to individuals and to employers, in the light of the number of cancer patients who have to cease treatment when their insurer refuses further funding even though the patient’s doctor advises that they would still benefit from the treatment.

Lord Sassoon: The Government are committed to establishing a new Consumer Protection and Markets Agency (CPMA). The CPMA will be responsible for making all conduct of business rules, including those relating to private medical insurance, and will take a strong approach to enforcement of conduct of business rules to ensure credible deterrence. The new CPMA will be independent of government. The independence of the Financial Ombudsman Service (FOS), the Financial Services Compensation Scheme (FSCS) and the CPMA will be vital to their role of providing a safety net for consumers with complaints against financial services firms. Their credibility, authority and value to consumers would be undermined if it were possible for the Government to intervene in their decision-making. In the mean time, the issues remain a matter for the Financial Services Authority (FSA), which makes and enforces these conduct of business rules.

Question asked in the House of Lords regarding the industry code of practice for health insurers

Posted on 23rd September 2010 by info@pnh-alliance.org.uk

On 16 August Lord Crisp (the former Permanent Secretary for Health and the Chief Executive of the NHS), asked a question in the House of Lords:

16/08 – House of Lords – Written Answers: Health: Cancer

Lord Crisp: To ask Her Majesty’s Government whether they will review the industry code of practice and the arrangements for oversight by the Financial Services Authority and Financial Ombudsman Service of health insurers who cease to cover certain cancer patients’ treatment even though their doctor advises that they would still benefit from the same treatment.

The Commercial Secretary to the Treasury (Lord Sassoon): The Financial Services Authority (FSA) is responsible for regulation of insurance companies. The FSA reviewed the private medical insurance market, along with other non-investment insurance products, when revising its Insurance Conduct of Business Rules in 2008. The FSA undertakes ongoing monitoring to ensure compliance with its rules, and industry codes and guidance must have regard to FSA principles of treating customers fairly.