Dáil Éireann Debate, Tuesday - 19 July 2016
516. Deputy David Cullinane asked the Minister for Public Expenditure and Reform his views on the outworking of the memorandum of understanding between the Office of Public Works and the representative body of the insurance industry; the level of exchange of flood defence data; if changes have led to a new commitment to provide insurance cover to those unable to obtain insurance; and if he will make a statement on the matter. [22308/16]
Amharc ar fhreagraThe Office of Public Works (OPW) has no role or function in relation to the oversight or regulation of insurance matters. 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 March 2014, a Memorandum of Understanding was signed between Insurance Ireland (II), the representative body for the insurance industry in Ireland, and the Office of Public Works (OPW). This Memorandum sets out principles of how the two organisations will work together to ensure that appropriate and relevant information on completed OPW flood defence schemes is provided to insurers to facilitate, to the greatest extent possible, the availability to the public of insurance against the risk of flooding. II members have committed to take into account all information provided by OPW when assessing exposure to flood risk within these areas.
The Memorandum came into effect on 1 June, 2014 with an initial tranche of data provided by the OPW to II in respect of 12 completed flood defence schemes and showing the design, extent and nature of the protection offered by these works. The schemes concerned are:
- Clonmel (River Suir)
- Dublin (River Dodder Tidal)
- Dublin (River Tolka)
- Dublin Fingal (River Tolka)
- Duleek (River Nanny)
- Dunmanway (River Bandon)
- Ennis (River Fergus Upper)
- Fermoy (River Blackwater)
- Kilkenny City (River Nore)
- Meath (River Tolka)
- Mornington (River Mornington)
- Tullamore (River Tullamore).
A further tranche of data was provided to II in January 2015 covering a further 4 completed flood defence schemes. These schemes are:
- Munster Blackwater, Mallow South and West, Co. Cork
- Hazelhatch, Celbridge, Co. Kildare
- Derrymullen, Ballinasloe, Co. Galway
- Carlow.
OPW will continue to provide data to II as flood defence schemes are completed.
Insurance Ireland estimates that flood cover is included as standard in 98% of household insurance policies throughout the country. II has carried out a number of surveys among its members to ascertain the extent to which flood insurance cover is available in the areas for which OPW has provided data on completed flood defence schemes. The results of these surveys are summarised in the following table:
Percentage of Property Insurance Policies which include flood cover
|
- |
13 January 2015* |
17 November 2015 |
22 January 2016 |
|
Areas Protected by Permanent Flood Defences |
91 |
86 |
89 |
|
Areas where Protection includes Demountable Defences |
66 |
67 |
78 |
|
All Protected Areas |
77 |
75 |
83 |
* 13 January 2015 data are information from the first 12 schemes on which the OPW provided data to Insurance Ireland.
II has pointed out that the effective operation of demountable flood defences requires accurate forecasting systems and methods, flood alert systems and monitoring, efficient mobilisation of equipment, manpower and materials and the timely and correct operation of the demountable defences. It has identified a number of specific risks associated with the operation of demountable defences and has stated that, should a failure occur in the deployment of demountable flood defences, the financial impact for insurers would most likely be very significant. Because of this potential exposure, insurers have limited risk appetite for providing flood insurance in areas protected by demountable defences.
I met recently with Insurance Ireland to stress the need for flood victims to have the best possible chances to be able to obtain insurance cover at reasonable cost. I highlighted that OPW schemes using demountable defences are built to the required standard and to provide robust levels of flood protection to properties. I welcome a commitment given to me by II to assess the risk from the deployment protocols, warning systems and emergency response systems in place. II and OPW will begin work to share information on the performance and deployment procedures of these defences.
The subject of insurance against the risk of flooding is one of the matters which will be addressed in the forthcoming report to Government from the Inter-Departmental Flood Policy Co-Ordination Group. The Group is due to report to me with its recommendations shortly. I will then bring the Group’s report to Government for its consideration as soon as possible.
