Dáil Éireann Debate, Thursday - 1 December 2016
135. Deputy Mick Barry asked the Minister for Finance the options that exist for affordable home insurance for persons in the Riverview area of Cork who have received high quotes or no quotes from private insurance firms on the basis that they deem the area a flood risk. [38237/16]
View answerThe flooding events last year raised issues in relation to flood insurance and I am aware of the difficulties that the absence or withdrawal of flood insurance cover can cause to homeowners and businesses. One of my primary concerns in the area of insurance is that homeowners have access to insurance to cover unforeseen losses, including flooding. However, the provision of insurance cover and the price at which it is offered is a commercial matter for insurance companies and is based on an assessment of the risks they are willing to accept and adequate provisioning to meet those risks. In my role as Minister for Finance, I have responsibility for the development of the legal framework governing financial regulation. Neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products or have the power to direct insurance companies to provide flood cover to specific individuals or businesses.
Government policy in relation to flooding is focused on the development of a sustainable, planned and risk-based approach to dealing with flooding problems, with a view to addressing the increased availability of flood insurance.
I am advised by Minister of State Canney who has responsibility for Flood Risk Management at the Office of Public Works (OPW) that in line with government policy, that Office is in the process of completing the Catchment Flood Risk Assessment and Management (CFRAM) Programme to give a clear and comprehensive picture of flood risk in 300 areas including 90 coastal areas identified as being at potentially significant risk and impact from flooding and to set out how the risk can be prioritised and managed effectively and sustainably.
The CFRAM Programme is being undertaken, in partnership with the OPW's consultants, Local Authorities and other stakeholders. This is a strategic approach that recognises the need, in line with international best practice, to move to a more sustainable, planned and risk-based approach to dealing with significant flooding risks.
The Programme involves the production of predictive flood mapping for each location, the development of preliminary flood risk management options and the production of final Flood Risk Management Plans (FRMPs). This is scheduled for Spring 2017 and will set out the preferred feasible measures, both structural and non-structural, that can manage the flood risk in each of the 300 areas.
The CFRAM Programme is assessing the risk for the majority of those properties in communities at potentially significant risk from flooding. The implementation of flood risk policy must address solutions for both properties assessed through the CFRAM Programme and for other at risk properties. Each category will involve both structural and non-structural solutions.
In relation to the area of Riverview Estate, Tower, Blarney, Co Cork, it was identified as an area for further assessment in the South Western CFRAM Programme. It was initially assessed as part of the Lee CFRAM Study, the outputs of which have been incorporated into the draft Flood Risk Management Plans (FRMP) for the South Western CFRAM.
I am advised that the public consultation on the draft flood risk management plans for the South Western CFRAM Study, including the further assessment of Tower finished on 23 September, 2016. The draft plans will now be finalised and all observations and comments received will be considered. A prioritised list of feasible measures will then be drawn up to address flood risk in an environmentally sustainable and cost effective manner.
It should also be noted that the Memorandum of Understanding (MOU) between the OPW and Insurance Ireland has provided for a system of information sharing in relation to completed flood works. The nature of this arrangement is such that it should lead to a greater availability of flood cover in previously high risk area, and at better prices. The MOU is currently being reviewed in order to see what can be done to strengthen it.
Finally, you should be aware that a consumer can make a complaint to the Financial Services Ombudsman in relation to any dealings with a Financial Services or Insurance provider during which they feel they have been unfairly treated. In addition, individuals who are experiencing difficulty in obtaining flood insurance or believe that they are being treated unfairly may contact Insurance Ireland which operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to insurance.
