Dáil Éireann Debate, Wednesday - 17 April 2019
54. Deputy Robert Troy asked the Minister for Finance when measures will be introduced to ensure insurance companies cannot refuse insurance in locations in which flood defence measures have been introduced. [10612/19]
Amharc ar fhreagraI 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 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 is a commercial matter for insurance companies, which has to be based on a proper assessment of the risks they are willing to accept. This assessment will in many cases include insurers own presumptions based on their private modelling and research. Consequently, neither the Government nor the Central Bank 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. This position is reinforced by the EU framework for insurance (Solvency II Directive) which expressly prohibits Member States from doing so.
The core strategy for addressing areas at potentially significant risk from flooding 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. The Plans set out the flood relief schemes that have already been constructed and those that are currently underway. The Plans also provide the outline of 118 proposed schemes that can protect a further 11,500 properties and the evidence to prioritise their delivery to where its benefit is greatest. OPW have informed us that they and Local Authorities will work closely together on the all of the projects to ensure that they are all implemented in the lifetime of the Programme.
The Government continues to believe that its existing policy and investment in relation to flooding which is focused on the development of a sustainable, planned and risk-based approach to dealing with flooding problems is the best way forward. This commitment is underpinned by a significant capital works investment programme by the OPW and Local Authorities, and complemented by a Memorandum of Understanding between the OPW and Insurance Ireland, which provides for the exchange of data in relation to completed flood defence schemes.
The nature of this arrangement is such that it has led to a greater availability of flood cover in previously higher risk areas. For instance, the most recent Insurance Ireland survey in March 2019 of approximately 87% of the property insurance market in Ireland indicates that of the completed defence schemes, 95% of policies in areas benefitting from permanent flood defences include flood cover, while 74% of policies in areas benefitting from demountable defences include flood cover. It should be noted that my Department is continuing to actively examine what can be done to increase the level of cover in areas with demountable defences.
