The January/February edition of Pink Finance contains our Formal Response to the recent ABI review of HIV Guidelines, which directly affect gay men on applying for insurance products. We invite you to read 'Protecting The Future Of The Life Assurance Industry', submitted to the ABI on behalf of the gay community. We have now entered into formal negotiations, which will determine the future treatment of gay men by the UK Life Assurance Industry.
'Stigma and discrimination around HIV and AIDS continues to fuel the global HIV epidemic. HIV-related stigma has been described as a 'process of devaluation' of people living with, or associated with HIV/AIDS. Discrimination follows stigma and is the unfair and unjust treatment of an individual based on his or her real or perceived HIV status. Stigma and discrimination breach fundamental human rights and are major obstacles to effective HIV/AIDS prevention and care, ultimately fuelling an epidemic that has already devastated the lives of millions of people worldwide, and will destroy many more.'
-Public Health Agency, CDR weekly, Volume 13, Number 48, 27th November 2003
The treatment that gay men are subjected to within the underwriting of life, critical illness and sickness insurance products in the UK is a breach of their human rights, and amounts to 'Institutional Homophobia'.
The underwriting procedures for gay men are disproportionate to the risk that this group represents, especially in light of statistics that show that other sections of the community represent a far higher risk to HIV infection.
The UK Life Assurance Industry is currently helping to fuel denial of HIV/AIDS within higher risk sections of the community by not introducing equal underwriting procedures designed to establish 'safe sexual behaviour', across all risk groups.
If the UK Life Assurance Industry was serious about protecting their future financial exposure to HIV/AIDS, they would introduce 'equalisation' of underwriting procedures between homosexual and heterosexual risk groups for HIV/AIDS.
The earlier that insurance companies recognise that HIV/AIDS is not longer an exclusively a 'pink' problem, the less they will be exposed to the financial risks that HIV/AIDS represents in the future. Our responses to the ABI review of HIV guidelines represent the first stage of the 'equalisation' process.
This document also contains recommendations that the Life Assurance Industry works in consultation with interested parties over the next three years, with a view to creating an environment of equal underwriting treatment across all risk groups affected by HIV.
HIV Testing and GP's Notes
Paul
I would like to say that my partner and I have been together for 13 years now, we do not have sex with other men, or use drugs, etc, but when we moved house two years ago, our lives were turned upside down by Legal & General, who made us undergo HIV Testing and asked us hundreds of very personal questions before letting us have life cover, my premium was then 'loaded', (I think that's the term used). My mortgage adviser said that the £70,000 of cover that I needed, would cost me a maximum of £10.00 per month, but when all the paperwork came through, I found I had to pay £14.17 per month. I contacted both my mortgage adviser and Legal & General wanting to know why the premium had been 'loaded', but up until now no one will give me an explanation. To make matters worse, up until then, our doctors never knew we were gay, but now both our doctors' files have HOMOSEXUAL written on the outer cover of our doctor's notes for all to see.
HIV Testing and Loaded Premiums
Steve
I was recently asked to fill in such a questionnaire and was then asked to undergo an HIV Test, which I did. I was shocked at the intrusive nature of the questions asked, but figured, as I had nothing to hide, I would go ahead and answer the bits I could.
On receiving the 'all clear' on the HIV Test, I was stunned to find that the insurer in question (a large mainstream insurer) wanted an extra premium to cover 'Unspecific Risks'. This extra premium was almost 100% of the original quoted figure. Needless to say, it was consigned to the bin!
My GP was also quite surprised that I had been forced to undergo an HIV Test. Why didn't they test for Cancer, Diabetes etc, as well?
Anyway, I hope you are successful at bringing about change. It's not before time!
HIV Testing and Medical Examination
Marc
I read your article about life insurance and discrimination with interest. A couple of years ago, I had arranged with Barclays to take a new mortgage. When I said that I am gay, I was put through a complete medical examination, blood test included, with a doctor in Chichester; and this was due to my sexual orientation.
The doctor I saw declared that putting gay people through the ordeal was completely scandalous and discriminatory, as heterosexuals were then already more affected by HIV and AIDS than gays. My monthly payment for Barclay's life insurance had been fixed at £12.50. It took Barclays four weeks to send me the results of the complete health check and I was declared as healthy as it comes. Just after the all clear from the doctor, my life insurance was increased to about £44.00 a month instead of £12.50.
When I called Barclay's life insurance, I was told that this increase was due to my lifestyle and due to my sexuality, but that Barclay's doesn't discriminate against its customers. When I asked why my monthly payment had been increased, no answer was given to me on the phone. I wrote a letter of complaint to Barclay's life insurance and I was told that the company doesn't practice discrimination. Needless to say, I cancelled my mortgage and I chose another lender who didn't discriminate.
Personal Questions
Dave
I am 48 years of age and have lived with my current partner for 18years. We recently moved home and I took out a new mortgage. I was quoted good terms for life insurance by our mortgage adviser at the Estate Agents, 'Your Move', who were arranging my mortgage. He filled in the relevant paperwork and at that point the only questions asked were to do with smoking, drinking, my height and weight. I was expecting to be asked to have a health check for my height as I am overweight.
Sure enough a few weeks later I received a letter asking me to attend an appointment with a doctor arranged by the insurance company. I went along and the doctor had to fill in a 4-page document. There were a number of questions about my lifestyle; here are the main two to do with my sexuality/HIV status:
After the medical I returned home and waited to hear by how much they were going to increase the premium. I didn't hear anything for a further two weeks, and then came the letter asking me to attend the same doctor for an HIV test, of course at no cost to myself! I complained to my mortgage adviser about Norwich Union's approach, and it was at this point I found out 'Your Move' Estate Agents is owned by Norwich Union.
I ignored the letter and did not attend the appointment at their doctors. I rang my bank, Nat West, who quoted me for life insurance over the phone. I filled in a Direct Debit form and the cover was arranged, NO QUESTIONS.
Speculative Underwriting - Occupation
Daniel
When Daniel decided to try and apply for Life Assurance and Critical Illness Cover for his mortgage he encountered more trouble than he bargained for. He decided to apply through a firm of Gay Financial Advisers, as they have experience in avoiding the personal questions, HIV testing and loaded premiums that are all too common.
Both Daniel and his financial adviser thought it would be a straightforward task, as he only wanted £87,000 of Life Assurance and had no real major health problems of note. The application was within standard underwriting limits of £100,000, where one or two companies do not ask for a lifestyle questionnaire or HIV test.
Daniel's application was forwarded to a life assurance company that normally does not ask these questions. However, on this occasion Daniel received a personal questionnaire. Confused, he contacted his adviser and asked why he had been sent the questionnaire?
The advisers explained that he was within the normal criteria and they also did not understand why he had been questioned about his sexuality. They promised to speak to the Life Assurance Company and get back to Daniel.
On approaching the insurer, the advisers pointed out that the application was below £100,000, without any major health issues. The underwriter agreed, but then highlighted Daniel's occupation, as his reason for sending the questionnaire.
The adviser was shocked that an underwriter would use a person's occupation, in this case Cabin Crew, as an indication of a person's sexuality. Immediately Daniel's application was switched to another company and the first application cancelled.©2001-2002
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