Dáil Éireann Debate, Tuesday - 2 November 2021
273. Deputy Bernard J. Durkan asked the Minister for Finance the procedures that can be followed by house sellers attempting to sell a property (details supplied) and in respect of which potential homeowners have been refused flood insurance due to its proximity to the river Liffey despite the fact that the house has not flooded once in two decades of ownership; and if he will make a statement on the matter. [52780/21]
View answerAs Minister for Finance, I am responsible for the development of the legal framework governing financial services regulation, including for the insurance sector. I am conscious of the difficulties that the absence or withdrawal of flood insurance cover can cause to homeowners and businesses. The Deputy should be aware that the provision of cover is a commercial matter for insurance companies based on an assessment of the risks they 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).
At a general level, it is my understanding that firms examine the claims history of the individual risk, along with the risk of flooding in the area and consider any flood protection measures when deciding what underwriting action to pursue. The Deputy will appreciate that I am not in a position to comment on procedures regarding house sales. However in the event that an insurance undertaking refuses to quote a consumer for property insurance, it should be noted that under the Central Bank of Ireland’s Consumer Protection Code, the insurance undertaking must within five business days of the refusal, inform the consumer of its refusal and its reasons for declining cover.
It may interest the individual involved to know that Insurance Ireland, the representative body for insurance providers in this country, operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance cover. This can be accessed at feedback@insuranceireland.eu. Brokers Ireland can be contacted at 01-6613067. In addition, 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 can be contacted either by email at info@fspo.ie or by telephone at 01-5677000.
Finally, the Deputy should be assured that Minister of State Fleming and I will also continue to engage on all aspects of insurance reform, including flood insurance issues, and that every effort is being made to encourage a responsive approach from the insurance industry.
