Dáil Éireann Debate, Thursday - 14 April 2016
69. Deputy Éamon Ó Cuív asked the Minister for Finance the status of meetings held since November 2015 with the insurance industry; if he has reached agreement in respect of homeowners being refused flood cover because of the perceived threat of flooding; if he will advise residents accordingly; and if he will make a statement on the matter. [6509/16]
Amharc ar fhreagraThe Taoiseach and some other of my colleagues in Government met the insurance industry on Tuesday 12 January 2016 to discuss the industry's role in providing flood insurance and to obtain the industry's views on flood insurance issues.
I am aware of the difficulties that the absence or withdrawal of flood insurance cover can cause to homeowners and the current flooding crisis has raised issues in relation to insurance and flooding. However, the provision of insurance cover and the price at which it is offered is a commercial matter for insurance companies and is based on an assessment of the risks they are willing to accept and adequate provisioning to meet those risks. In my role as Minister for Finance, I have responsibility for the development of the legal framework governing financial regulation. Neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products or have the power to direct insurance companies to provide flood cover to specific individuals or businesses.
Government policy in relation to flooding is focused on the development of a sustainable, planned and risk-based approach to dealing with flooding problems, with a view to addressing the increased availability of flood insurance. To achieve this aim, there is a focus on prioritising spending on flood relief measures, development and implementation of plans by the Office of Public Works (OPW) to implement flood relief schemes. This strategy is complemented by a Memorandum of Understanding between the OPW and Insurance Ireland which provides for the transfer by the OPW of data in relation to completed flood defence schemes to the insurance industry, which should provide a basis for the increased provision of flood insurance in areas where works have been completed.
I would also add that my officials are undertaking research in the area of flood insurance which will include an analysis of the different approaches to flood insurance taken in other countries. This will then feed into a report to Government from the Inter-Departmental Flood Policy Co-Ordination Group which is expected to be completed before the summer.
