Dáil Éireann Debate, Thursday - 20 May 2021
212. Deputy Brendan Griffin asked the Minister for Finance if an insurance company is permitted to withdraw flood cover from a claim in respect of a business that was never flooded and that it covered for a number of years such as in the case of a person (details supplied); and if he will make a statement on the matter. [27431/21]
View answerAs Minister for Finance, I am responsible for the development of the legal framework governing financial services regulation, including for the insurance sector. It is important at the outset to state that the provision of cover is a commercial matter for insurance companies. This is based on an assessment of the risks providers are willing to accept. Consequently, neither I nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products, as reinforced by the EU framework for insurance (Solvency II Directive). Furthermore, it is not appropriate for me to comment on individual cases.
I have been advised by the Central Bank of Ireland that it’s Consumer Protection Code states that a regulated entity must ensure that in all its dealings with customer it acts honestly, fairly and professionally in the best interests of its customers and the integrity of the market. In the event that an insurance undertaking refuses to quote a consumer for property insurance, the insurance undertaking must, within five business days of the refusal, inform the consumer of its refusal and its reasons for declining cover. However, an underwriter cannot change the terms and conditions of a policy mid-term without the consent of the policyholder.
Furthermore, the Deputy should be aware that Section 15 of the Consumer Insurance Contracts Act 2019, specifically outlines that an insurer who intends to exclude certain areas from cover under the insurance contract shall do so explicitly in writing before the commencement of the contract.
Finally, where somebody feels they have been treated unfairly by a particular insurance provider, they have the option of making a complaint to the Financial Services and Pensions Ombudsman (FSPO). The FSPO acts as an independent arbiter of disputes which consumers may have with their insurance company or other financial service provider. The FSPO can be contacted either by email at info@fspo.ie or by telephone at 01-567-7000. I would also note that Insurance Ireland 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.
