Dáil Éireann Debate, Tuesday - 2 November 2021
258. Deputy Catherine Murphy asked the Minister for Finance if he has engaged with insurance providers in respect of their lack of consistency regarding the way in which and the grounds on which they refuse to provide insurance cover in areas that are not identified as flood risk by the OPW in the context of their mapping and modelling of flood risk areas. [52191/21]
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. However, the provision of cover is a separate commercial matter for insurance companies 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).
The Office of Public Works (‘OPW’) is the lead agency for flooding matters. I am informed that the OPW flood maps are community based and as such, they do not designate individual properties at risk. While these maps are available to the public, users are not permitted to use the flood maps for commercial purposes. As such the insurance industry has highlighted to the OPW that it does not use its flood maps to inform its flood modelling. 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.
The Government has committed circa €1 billion to the delivery of these flood relief schemes over the lifetime of the National Development Plan to 2030 to protect approximately 23,000 properties in threatened communities from river and coastal flood risk. This investment is the cornerstone of the Government’s policy on flood insurance which is focused on sustainable flood risk management. Where defences have been built there is a reasonable expectation that insurers will provide cover.
The Department of Finance is engaging with Insurance Ireland, the OPW, the Department of Housing and Local Government and other stakeholders through the OPW-led Memorandum of Understanding Working Group regarding how the levels of insurance cover might be improved in areas where flood defence works have been completed. Furthermore, the Deputy should be aware that flood insurance matters were also discussed by the Cabinet Committee Sub Group on Insurance Reform on 20 October 2021.
This is a difficult issue, however please be assured that both I and Minister of State Fleming will continue to engage on all aspects of insurance reform, including flood insurance issues, and that every effort is being made to encourage a responsive approach from the insurance industry.
