Dáil Éireann Debate, Tuesday - 24 October 2017
41. Deputy Seán Barrett asked the Minister for Finance if his attention has been drawn to the fact that residents in a housing estate (details supplied) are being refused home insurance by two major insurance companies due to flood risk; and if he will make a statement on the matter. [41698/17]
View answer45. Deputy Maureen O'Sullivan asked the Minister for Finance the consultations he has had with a group (details supplied) regarding difficulties faced by persons in Dublin 3 in relation to home insurance due to flood risks. [44701/17]
View answerI propose to take Questions Nos. 41 and 45 together.
I am conscious of the difficulties that the absence or withdrawal of flood insurance cover can cause to homeowners and businesses, and that is one of the reasons the Government has been prioritising investment in flood defences over the last number of years.
However, you should be aware that the provision of insurance is a commercial matter for insurance companies, which has to be based on a proper assessment of the risks they are willing to accept. Consequently, neither the Government nor the Central Bank 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. This in turn should lead to the increased availability of flood insurance. To achieve this aim, there is a focus on:
- prioritising spending on flood relief measures by the Office of Public Works (OPW) and relevant local authorities,
- development and implementation of plans by the OPW to implement flood relief schemes, and
- improving channels of communication between the OPW and the insurance industry, in order to reach a better understanding about the provision of flood cover in marginal areas.
The above approach is complemented by a Memorandum of Understanding between the OPW and Insurance Ireland, which provides for the exchange of data in relation to completed flood defence schemes which should provide a basis for the increased provision of flood insurance in areas where works have been completed. In this regard, the Insurance Ireland/OPW working group, which the Department of Finance attends, now meets on a quarterly basis to support the information flow and improve the understanding of issues between both parties.
The core strategy for addressing areas at potentially significant risk from flooding is the OPW Catchment Flood Risk Assessment and Management (CFRAM) Programme. The Programme, which is being undertaken by engineering consultants on behalf of the OPW working in partnership with the local authorities, involves the production of predictive flood mapping for each location, the development of preliminary flood risk management options and the production of Flood Risk Management Plans.
I have been advised by the OPW that the majority of CFRAM Plans are now with the Department of Public Expenditure and Reform for its independent review of the environmental assessments. Once this is completed and observations addressed, the final Plans will be submitted to me for approval in my role as Minister for Public Expenditure and Reform.
It is important to note that the CFRAM flood maps are community based maps and while they provide a useful resource for planning and emergency responses, they cannot be used for commercial purposes. Instead, the insurance industry uses its own flood modelling tools for assessing the level of risk to individual properties.
While it is not possible for me to comment on individual cases, I have been advised by the OPW that (i) the maps relating to Abberley, Killiney, Co. Dublin have been finalised and will be published on the day of the launch of the CFRAM Programme and (ii) that information on the Tolka - East Wall Scheme, the Tolka - Hawthorne Terrace Scheme, and the Tolka - Richmond Road Scheme which are all located in Dublin 3, and built to the 1/100 year standard, has been shared with Insurance Ireland under the Memorandum of Understanding mentioned above.
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.
