Dáil Éireann Debate, Tuesday - 21 September 2021
36. Deputy Cathal Crowe asked the Minister for Finance if he will take measures to ensure that the insurance sector does not apply the principle of risk equalisation whereby homes that have never been flooded are being denied insurance that incorporates flood protection cover. [44673/21]
Amharc ar fhreagraThe provision of flood cover is a commercial matter for insurance companies, based on an assessment of the risks they are willing to accept. At a general level, it is my understanding that firms examine the claims history of the individual risk, the risk of flooding in the area and consider any flood protection measures when deciding what underwriting action to take.
Saying that, I have asked my officials to monitor the development you have mentioned, and engage with Insurance Ireland on the matter. However, it is important to remind the Deputy that neither I nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products. This position is reinforced by the EU framework for insurance (Solvency II Directive).
Current government policy in relation to increasing flood insurance coverage is focused on the development of a sustainable, planned and risk-based approach to managing flooding problems. Almost €1 billion in flood relief measures is being invested over the lifetime of the National Development Plan 2018-2027. The Department of Finance will continue to engage with the OPW, Insurance Ireland and other stakeholders regarding the levels of flood cover being provided.
Finally, the Deputy should be assured that Minister of State Fleming and I will continue to proactively engage on all aspects of insurance reform including flood insurance issues.
