Dáil Éireann Debate, Wednesday - 23 September 2015
62. Deputy Clare Daly asked the Minister for Finance the reason insurance companies are permitted to exclude cover for flood damage by using a technology for geocoding-flooding mapping, which results in premises being denied cover which they previously had despite no history of flooding; and the steps he proposes to take to deal with the industry. [32413/15]
View answerIn my role as Minister for Finance, I have responsibility for the development of the legal framework governing financial regulation. The provision of insurance cover, the level of premiums charged and the policy terms applied are a matter for individual insurers. Insurance companies make commercial decisions on the provision of insurance cover based on their assessment of the risks they would be accepting and adequate provisioning to meet these risks. As a matter of course, insurance companies carry out reviews of the risks against which they are prepared to insure and they consider these risks when determining their policies.
The EU framework for insurance expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval or provide systematic notification of certain matters, including general and special policy conditions and scales of premiums.
My officials have consulted with Insurance Ireland regarding the particular issue which the Deputy has raised. Insurance Ireland advised that insurers differentiate between risks by using various tools and data such as geocoding, their own individual company claims data, flood modelling data, secondary data, and the existence of adequate flood defences, etc. Insurers then decide whether to offer cover at normal terms, charge a higher premium, impose a higher excess or exclude flood cover. Insurers make their own individual decisions on whether to offer cover or what terms to apply.
Insurance Ireland operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance. This service can be contacted at 01 6761914 or by email at info@insuranceireland.eu.
