Dáil Éireann Debate, Tuesday - 17 October 2023
166. Deputy Patrick Costello asked the Minister for Finance for an update in relation to insurance measures which are available to residents living in flood risk areas; and if he will make a statement on the matter. [45228/23]
View answerGovernment policy in relation to flooding is focused on the development of a sustainable, planned and risk-based approach to dealing with this issue. The cornerstone of this approach is the €1.3 billion committed to the delivery of flood relief schemes over the lifetime of the National Development Plan (NDP) 2021-2030. Where defences have been built, there is a reasonable expectation that insurers will provide cover.
The insurance industry has informed my Department that firms examine the claims history of the individual risk, the risk of flooding in the area and consider any flood protection measures when taking any underwriting decision. Discussions on flood cover with the insurance industry continue to take place as part of an OPW-Insurance Ireland Memorandum of Understanding Working Group that meets on a regular basis. This focuses upon how the levels of insurance cover might be improved in areas where flood defence works have been completed. The Department also participates in the OPW chaired Interdepartmental Flood Policy Coordination Group along with the Department of Housing and Local Government and other stakeholders.
Arising from this, separate industry and Central Bank of Ireland surveys indicate the majority of policies in areas with fixed defences have flood cover. However, it is acknowledged that some households are still experiencing difficulties, particularly in areas with demountable flood defences - these are systems that require a degree of human intervention in their mobilisation.
Separately, the Department has regular meetings with Insurance Ireland on a range of insurance-related issues including flood cover. The Department of Finance will continue to monitor and assess the provision of flood cover, including the impact of climate change on insurance over the long term, including through policy channels such as the European Commission and OECD.
Of note also is that Insurance Ireland operates an Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance, which can be accessed at feedback@insuranceireland.eu. Likewise, Brokers Ireland, the representative body for insurance brokers in Ireland, can be contacted. They have access to a wide range of providers and products, and can offer advice for customers in sourcing cover. They can be reached at 01 6613067.
As has been the case, my Department will continue to monitor and assess any flood insurance matters, including through: its participation in the OPW and Insurance Ireland Working Group; actively encourage industry to have a more responsive approach to the matter; engage with the Central Bank of Ireland; and consider domestic and international policy developments to these issues as they arise.
Finally, the Deputy should be assured that both I and Minister of State Carroll MacNeill will continue to engage on all aspects of insurance reform, including flood cover issues, and that every effort is being made to encourage a responsive approach from the insurance industry. As Minister for Finance, I have policy responsibility for the development of the legal framework governing financial services regulation, including for the insurance sector. It should be noted that the provision of insurance cover and the price at which it is offered is a commercial matter for those providers and is based on an assessment of the risks they are willing to accept. Therefore, under the EU Solvency II Directive, neither the Minister for Finance nor the Central Bank of Ireland can compel insurers to provide such cover.
