Insurance Coverage

Dáil Éireann Debate, Tuesday - 22 October 2019

Tuesday, 22 October 2019

Ceisteanna (154)

Willie O'Dea

Ceist:

154. Deputy Willie O'Dea asked the Minister for Finance if his attention has been drawn to the fact that the insurance industry has refused flood insurance for a number of domestic dwellings in the Limerick city area on the basis of a flood map prepared by a private company based in London and that particular flood map conflicts directly with the most recent flood map for those areas prepared by the OPW; his views on whether the OPW map should be the relevant map for determining flood risk; if the insurance companies will be instructed accordingly; and if he will make a statement on the matter. [43428/19]

Freagraí scríofa

Minister for Finance

As previously indicated the OPW flood maps are community based ones and provide a useful resource for planning, however they cannot be used for commercial purposes. The Disclaimer and Conditions for Use of OPW Flood Maps on floodinfo.ie includes a provision that states specifically that users of the website must not use the flood maps, or any other content of the website, for commercial purposes.  Consequently, in making a decision as to whether it will provide cover in a particular area an insurers will often use their own flood modelling tools for assessing the level of risk that they are is willing to underwrite in relation to individual properties.

As to why there is a conflict between OPW flood risk maps and those of private insurers, I cannot comment, but the Deputy could seek further clarification from OPW on this matter.

Finally, it is important to make clear that neither I as Minister for Finance 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.