Dáil Éireann Debate, Tuesday - 15 June 2021
121. Deputy Steven Matthews asked the Minister for Finance the position regarding his engagement with the insurance sector specifically related to individuals and businesses that are unable to get flood protection cover despite the completion of OPW flood defences to protect the location of their properties; and if he will make a statement on the matter. [20056/21]
Amharc ar fhreagraAs Minister for Finance, I am responsible for the development of the legal framework governing financial services regulation, including for the insurance sector, while the provision of cover is a separate commercial matter for insurance companies. This is based on an assessment of the risks they are willing to accept. Consequently, neither I nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products, as reinforced by the EU framework for insurance (Solvency II Directive).
Current government policy in relation to increasing flood insurance coverage is primarily focused on the development of a sustainable, planned and risk-based approach to managing flooding problems. As such, almost €1 billion in flood relief measures is being invested over the lifetime of the National Development Plan 2018-2027, with an expectation that insurers will provide cover where this has occurred. This approach is complemented by a Memorandum of Understanding between the Office of Public Works (OPW) and industry representatives Insurance Ireland. This provides for the exchange of data in relation to completed flood defence schemes which should, in turn, provide a basis for the increased provision of flood insurance in these areas.
While there has been an overall increase in the provision of flood insurance between 2015 and 2020, it is recognised that some householders are still experiencing difficulties, for example in areas with demountable flood defences. I am conscious of the challenges that the absence or withdrawal of flood insurance cover can cause to homeowners and businesses. My officials are engaging with both Insurance Ireland, the OPW and other stakeholders regarding flood defence schemes and how the levels of insurance cover might be improved in areas where flood defence works have been completed.
Furthermore, the Deputy should be assured that Minister of State Fleming and I will also continue to engage on all aspects of insurance reform, including flood cover, and that every effort is being made to encourage a responsive approach from the industry.
