Eugene Murphy
Ceist:34. Deputy Eugene Murphy asked the Minister for Finance the status of flood insurance reform; and if he will make a statement on the matter. [11620/18]
Amharc ar fhreagraThursday, 8 March 2018
Ceisteanna (34)
Freagraí scríofa
I am conscious of the difficulties that the absence or withdrawal of flood insurance cover can cause to homeowners and businesses, and that is one of the reasons why the Government has been prioritising investment in flood defences over the last number of years. However, you should be aware that the provision of insurance and the price at which it is offered is a commercial matter for insurance companies, which has to be based on a proper assessment of the risks they are willing to accept. Neither I nor the Central Bank can interfere in this process.
My Department carried out a review of policy in relation to flood insurance in 2016, which formed part of the Interdepartmental Flood Policy Coordination Group Interim Report, as approved by Government in November 2016. As part of the review, a number of possible approaches were examined including those in other jurisdictions. For example, an Insurance Pool with State Indemnification similar to Flood Re in the UK was considered, however it was concluded that such an approach would lead to additional levies being imposed on all household insurance policies at a time of increasing insurance costs, and could potentially lead to a considerable financial exposure to the Exchequer.
The review recommended the continuation of the existing policy approach which has been in place since 2010, and confirmed by Government again in November 2016. This policy is focused on the development of a sustainable, planned and risk-based approach to dealing with flooding problems. This in turn should lead to the increased availability of flood insurance. To achieve this aim, there is a focus on:
- prioritising spending on flood relief measures by the Office of Public Works (OPW) and relevant local authorities,
- development and implementation of plans by the OPW to implement flood relief schemes, and
- improving channels of communication between the OPW and the insurance industry, in order to reach a better understanding about the provision of flood cover in marginal areas.
This strategy is complemented by a Memorandum of Understanding between the OPW and Insurance Ireland, the representative body for insurance companies in Ireland, which provides for the exchange of data in relation to completed flood defence schemes which should provide a basis for the increased provision of flood insurance in areas where works have been completed. In this regard, the Insurance Ireland/OPW working group, which the Department of Finance attends, now meets on a quarterly basis to support the information flow and improve the understanding of issues between both parties.
Directly related to the above is the OPW Catchment Flood Risk Assessment and Management (CFRAM) Programme. The CFRAM Programme focussed on 300 Areas for Further Assessment (AFAs) including 90 coastal areas, mainly in urban locations nationwide, identified as being at potentially significant risk of flooding. The proposed feasible measures, both structural and non-structural, identified for AFAs are outlined in Flood Risk Management Plans.
I am advised by the OPW that the finalised Flood Risk Management Plans were submitted to the Department of Public Expenditure and Reform in Summer 2017 for an independent review of the environmental assessments. Having now received the outcomes of the independent review, the Commissioners of Public Works expect in the coming weeks to formally submit the Flood Risk Management Plans for my approval.
Finally, you should be aware that a consumer can make a complaint to the Financial Services Ombudsman in relation to any dealings with a Financial Services or Insurance provider during which they feel they have been unfairly treated. In addition, individuals who are experiencing difficulty in obtaining flood insurance or believe that they are being treated unfairly may contact Insurance Ireland which operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to insurance.