Dáil Éireann Debate, Tuesday - 5 March 2019
132. Deputy Aindrias Moynihan asked the Minister for Finance the steps he is taking to reduce the cost of flood insurance for areas which require flood relief works as prescribed by the Office of Public Works under the CFRAM scheme but which are not included in the first tranche of works; and if he will make a statement on the matter. [10360/19]
View answerI am conscious of the difficulties that the cost 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. This assessment will in many cases include insurers own presumptions based on their private modelling and research. 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. This position is reinforced by the EU framework for insurance which expressly prohibits Member States from doing so.
The above mentioned limitations means that addressing the cost and availability of flood insurance must be addressed from a different angle. In this regard the core strategy for addressing areas at potentially significant risk from flooding is the OPW Catchment Flood Risk Assessment and Management ("CFRAM") Programme. The CFRAM Programme focussed on 300 Areas for Further Assessment ("AFAs") including 90 coastal areas, mainly in urban locations nationwide, identified as being at potentially significant risk of flooding. The proposed feasible measures, both structural and non-structural, identified for AFAs are outlined in Flood Risk Management Plans. The Plans set out the flood relief schemes that have already been constructed and those that are currently underway. The Plans also provide the outline of 118 proposed schemes that can protect a further 11,500 properties and the evidence to prioritise their delivery to where its benefit is greatest. OPW have informed my Department that they and Local Authorities will work closely together on all of the projects to ensure that they are implemented in the lifetime of the Programme. The OPW has also advised that they are working with Local Authorities to ensure these schemes are progressed within agreed timeframes.
Therefore, 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.
A key part of the overall strategy is ongoing communication between the OPW and the insurance industry, in order to reach a better understanding about the provision of flood cover in marginal areas. This is facilitated 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.
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.
