Dáil Éireann Debate, Wednesday - 16 December 2020
85. Deputy Willie O'Dea asked the Minister for Finance the remedy he proposes for a person who has been refused flood risk insurance even though they had such insurance cover for many years for the same property; the steps being taken to alleviate the issue; and if he will make a statement on the matter. [43661/20]
View answerI am conscious of the difficulties that the absence or withdrawal of flood insurance cover can cause to homeowners and businesses. However, you should be aware that the provision of insurance is a commercial matter for insurance companies, which is based on an assessment of the risks they are willing to accept. Consequently, neither I nor the Central Bank can interfere in the provision or pricing of insurance products. This position is reinforced by the EU framework for insurance (Solvency II Directive).
With respect to the issue highlighted in the question, I would first of all recommend that the individual in question ought to contact Insurance Ireland which operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance cover including flood insurance, at feedback@insuranceireland.eu. In addition, the person has the right to 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.
Current government policy in relation to increasing flood insurance coverage is focused on the development of a sustainable, planned and risk-based approach to managing flooding problems. To achieve this aim there is a focus on:
- Investing almost €1 billion to flood relief measures over the lifetime of the National Development Plan 2018-2027.
- Implementation of flood relief management plans by the Office of Public Works (OPW), and;
- Maintaining channels of communication between the OPW and the insurance industry, in order to reach a better understanding about the provision of flood cover in affected areas.
The above approach is underpinned by a Memorandum of Understanding between the OPW and industry representatives Insurance Ireland, who meet on a quarterly basis to help implement this initiative. This provides for the exchange of data in relation to completed flood defence schemes which should in turn provide a basis for the increased provision of flood insurance in these areas.
I acknowledge that while there has been an overall increase in the provision of flood insurance between 2015 and 2020, some householders are still experiencing difficulties. This is particularly the case for households in areas with demountable flood defences.
My Department is reviewing the challenges of property insurance and flooding as part of the action points for my Department under the Climate Action Plan. Over the last year it launched a public consultation on Climate Change and Insurance and subsequently met with interested parties. The key themes that arose from the consultation related to (i) the lack of data on flood insurance coverage and (ii) the challenges of obtaining flood cover in areas with demountable defences. My Department is now meeting with key stakeholders such as the Central Bank of Ireland, the OPW, Irish Public Bodies, and the State Claims Agency to further review the issues raised and assess a feasible way forward. This review is in progress and my Department will continue to provide updates on this work stream to the Climate Action Delivery Board.
Finally, the Deputy should be assured that Minister of State Fleming and I will continue to proactively engage on all aspects of insurance reform including flood insurance issues.
