25 MFómh 2012, 18:16
The practice of geo-coding of areas as being deemed of high risk of flooding, subsidence and other extreme weather events by insurance companies must be reviewed, according to the Committee on Environment, Culture and the Gaeltacht.
Geo-coding is used by insurers to assess risk for areas from flood, storm and subsidence damage and the call for a review follows a meeting today at which the Irish Insurance Federation appeared before the Environment Committee.
The call for a review of the practice of geo-coding was one of a series of recommendations made by the Committee upon the meeting’s conclusion.
Cathaoirleach of the Oireachtas Committee on the Environment, Culture and the Gaeltacht, Ciaran Lynch, TD said: “A code of good professional practice with regards to the problems that arise from geo-coding must be examined. Insurance companies must recognise the remedial work carried out to prevent flooding, subsidence or storm damage by extreme weather when they geo-code those areas for insurance risks.
We have been told of instances where remedial work in terms of building or improving flood defences have been undertaken and people in those areas still can’t get property insurance. This should not happen.
If remedial work is carried out in an area that was subject to flooding in the past, that area should no longer be geo-coded as a flood risk. The practice of geo-coding must be reviewed in these cases.”
Among the issues the Committee would like to see put in place are:
• A certification process which allows businesses and households to challenge general geo-coding that prohibits the availability of flood insurance.
• The insurance industry should take responsibility to explain to existing customer why flood/subsidence insurance is no longer available and what remedial works would resolve the issue.
• Interim measures such as an Excess payment should be considered by the industry while flood remedial measures are undertaken
• The industry should re-examine the eligibility criteria for obtaining insurance, for example in the cases of bankruptcy which would appear to be grounds for automatic disqualification. The committee is particularly concerned with this position by insurance companies as it may have very detrimental implications for struggling home owners in regard to the forthcoming passing of insolvency legislation.
Deputy Lynch concluded: “The insurance industry needs to be more innovative and come up with solutions to deal with customers – householders and businesses – impacted by increasingly frequent weather events and climate change.”
Ends
For further information please contact:
Ciaran Brennan,
Houses of the Oireachtas,
Communications Unit,
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P: +3531 618 3903
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Committee Membership
Joint Committee on Environment, Culture and the Gaeltacht
Deputies: James Bannon TD (Fine Gael); Paudie Coffey TD (Fine Gael); Niall Collins TD (Fianna Fáil); Noel Coonan (Fine Gael) Leas-Chathaoirleach; Marcella Corcoran Kennedy TD (Fine Gael); Luke Flanagan TD (Independent); Kevin Humphreys TD (Labour); Ciarán Lynch TD (Labour) Cathaoirleach; Sandra Mc Lellan TD (Sinn Féin); Tony Mc Loughlin TD (Fine Gael); Michelle Mulherin TD (Fine Gael); Catherine Murphy TD (Independent); Gerald Nash TD (Labour); Brian Stanley TD (Sinn Féin); Robert Troy TD (Fianna Fáil).
Senators: Senator Cáit Keane (Fine Gael) Senator Denis Landy (Labour); An Seanadóir Fiach Mac Conghail (Neamhspleách); Senator Catherine Noone (Fine Gael); An Seanadóir Labhrás Ó Murchú (Fianna Fáil): Senator Ned O’Sullivan (Fianna Fáil).