Dáil Éireann Debate, Tuesday - 18 February 2014
300. Deputy Kevin Humphreys asked the Minister for Public Expenditure and Reform when he expects the memorandum of understanding to be agreed with insurance companies that are licensed here to provide flood cover to home owners and businesses where flood defences have been built by the State; and if he will make a statement on the matter. [7689/14]
View answerThe Office of Public Works (OPW) has taken the lead role in discussions with Insurance Ireland with a view to improving the availability of insurance cover in areas where the OPW, or local authorities with OPW funding, have carried out major flood defence schemes. There have been some unexpected issues on the industry side requiring finalisation but I am confident that, in the coming weeks, I will be in a position to make an announcement on an agreed Memorandum of Understanding (MoU) between the industry and the OPW.
The OPW has to date provided information on 12 completed flood relief schemes in an agreed format to Insurance Ireland and I expect to see that, in these protected areas, the insurance industry recognises this significant capital investment on behalf of the taxpayer, and insures properties benefiting from that investment.
It is important, nevertheless, to state that the OPW has no role or function in relation to the oversight or regulation of the insurance industry or of insurance matters generally. I am aware that the issue of obtaining insurance cover continues to cause great difficulty to people in certain locations. Insurance companies make commercial decisions on the provision of insurance cover based on their assessment of the risks they would be accepting on a case by case basis but, where flood defence investments have been made and the standard of protection can be verified, I see no reason why the insurance industry cannot provide flood insurance cover in these communities.
