Dáil Éireann Debate, Tuesday - 9 November 2021
238. Deputy Catherine Murphy asked the Minister for Finance the steps he has taken in respect of the provision of premiums by insurance companies to persons in homes that are not designated as a flood risk; and if his attention has been drawn to instances in which insurance companies are refusing to provide cover in instances in which OPW flood maps clearly identify areas as not being in a flood area. [53969/21]
View answerIt is important at the outset to state that the provision of flood cover is a commercial matter for insurance companies, based on an assessment of the risks they are willing to accept. As such, the Government cannot interfere in the provision or pricing of insurance, or direct as to where cover is provided. Consequently, neither I nor the Central Bank of Ireland can interfere in this, as reinforced by the EU framework for insurance (Solvency II Directive).
Current government policy on flood insurance is centred on significant investment in sustainable flood management and the exchange of information between the insurance industry and the Office of Public Works (OPW). While the majority of property insurance policies contain flood cover, I acknowledge that some households can experience difficulties. My Department will continue to engage with Insurance Ireland, the OPW, the Department of Housing, Local Government and Heritage and other stakeholders through the OPW-led Memorandum of Understanding Working Group on the level of flood insurance. Please note that flood cover was also discussed by the Cabinet Committee Sub Group on Insurance Reform on 20 October 2021.
In terms of the OPW flood maps, please note that the OPW is the lead agency for flooding matters. I am informed that the OPW flood maps are community based. As such, they do not designate individual properties at risk and cannot be used for commercial purposes. The insurance industry has highlighted that it does not use the OPW’s flood maps to inform its flood modelling. At a general level, it is my understanding that firms examine the claims history of the individual risk, the risk of flooding in the area and consider any flood protection measures, with the provision of cover based on these assessments examined on case-by-case basis.
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 decision and its reasons for declining cover. In addition, Insurance Ireland operates a free Insurance Information service for members of the public who have general queries in relation to insurance cover and this can be accessed at feedback@insuranceireland.eu.
While this is a complex issue, please be assured that both Minister of State Fleming and I will 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.
