John Perry (Sligo-North Leitrim, Fine Gael) | Oireachtas source

On behalf of the Minister of State at the Department of Finance, Deputy Brian Hayes, I thank the Deputy for providing the opportunity to update him and the House on developments on this matter.

I am fully aware that the issue of obtaining flood insurance cover is a matter of some concern to some people in certain locations around the country, whether in terms of the higher premia they are being asked to pay or where their existing insurance company indicates it will no longer provide such flood cover specifically. Insurance Ireland, formerly the Irish Insurance Federation, has indicated that the incidence of such difficulties remains at a low level and that only of the order of 2% of insurance policies nationally are involved. Nonetheless 2% of households represents a significant number of affected people and for this reason the Government is anxious that the problem is addressed.

The Minister of State, at the Department of Finance, Deputy Brian Hayes and his officials in the OPW have been actively engaged with the insurance industry for some time in regard to the transfer of information on completed flood defence schemes. In January 2013 a working group was established with representatives from the OPW, Insurance Ireland and the main household insurance companies operating in the Irish market to consider and address this issue. This group has a specific aim and purpose and it is important that this and the role of the OPW in the process are clearly understood.

It must be emphasised that the OPW has no role or function in regard to the oversight or regulation of the insurance industry or of insurance matters generally. The discussions between the OPW, Insurance Ireland and the insurance companies have a specific focus and are concerned solely with agreeing a basis on which information can be provided to the insurance industry on flood relief schemes completed by the OPW and the standard of protection offered by those schemes.

The discussions have been complex and quite technical in nature and it is important that all matters are addressed in a comprehensive way that will ensure that the system of data exchange is robust, reliable and sustainable. I am happy to report that the working group has made very good progress and agreement has been reached on a data-sharing platform which will facilitate the transfer of detailed information on completed OPW flood relief schemes. This will allow the insurance industry to properly take into account the levels of capital investment in flood protection measures over several decades by the OPW when assessing flood risk in localities where such flood measures have been completed.

The information being provided is in a readily accessible format which will show in digital map files the areas benefiting from completed flood defence works. The initial focus of the group's work is the provision of information on schemes which provide protection for the one in 100 year flood. The OPW has provided an initial batch of information to the insurance companies and the latter are currently working on integrating this information into their own individual operating systems. It is expected that this work will be completed shortly.

It is intended that the OPW and Insurance Ireland will agree a memorandum of understanding to guide present and future interaction between the insurance industry and the OPW in regard to communications around completed flood defence works. The OPW is satisfied that the insurance industry is engaging constructively and positively in this process and that there is a strong willingness to co-operate on implementing a sustainable system of information exchange. Ultimately, it is a matter for the insurance companies themselves to decide how they will use the information provided on completed flood defence works. As part of the process they are committing to take the information into account in their assessment of risk and it is to be hoped that this will facilitate the provision of flood cover in all areas that are protected by completed schemes.

Finally, I remind the Deputy of the avenues available to those having difficulty, complaints or queries in seeking insurance cover through Insurance Ireland's free insurance information service. In addition, the Financial Services Ombudsman deals independently with unresolved complaints from consumers about their individual dealings with all financial service providers.

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