Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions he has had with the Prudential Regulatory Authority on the provision of life insurance for people with diagnosed mental health conditions.

The Government is determined that all insurers should treat customers fairly.

The Prudential Regulation Authority (PRA) is responsible for the prudential regulation (the amount of capital that must be held) of a number of financial service providers, including insurers, while the Financial Conduct Authority (FCA) sets the conduct standards required of insurance firms in relation to their business. The FCA requires firms dealing with all customers, including those with mental health issues and other vulnerabilities, to act honestly, fairly and professionally in accordance with their customers' best interests; to pay due regard to the interests of their customers and treat them fairly; and communicate information to them in a way which is clear, fair and not misleading.

Where the FCA becomes aware that firms are treating customers, including customers with vulnerabilities such as mental health issues, unfairly, they will consider this on a case-by-case basis and use the full range of regulatory and supervisory powers to put things right.

The FCA has placed access and vulnerability at the core of its Mission and Business Plan. In July 2019, the FCA launched a consultation on guidance for firms on the treatment of vulnerable consumers, including those with mental health conditions. The FCA planned to issue a further consultation on the Guidance in early 2020, but this was postponed due to the Covid 19 pandemic. It will now be published later this year.