Richard Bruton (Dublin North Central, Fine Gael)
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Question 140: To ask the Minister for Finance if his attention has been drawn to the fact that persons in an area (details supplied) in Dublin 5 have been unable to renew their house insurance since flooding occurred in 2008; the meetings he has had with the consumer director of the Financial Regulator about codes of practice in this area; if he will suggest a resolution to this problem pending the finalisation of proposals between the Office of Public Works and Dublin City Council on flood alleviation measures. [44747/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am aware that because of previous claims experience, householders in different parts of the country, including areas in Dublin, have found it difficult to obtain insurance against flood damage. This is because the decision to provide any specific form of insurance cover and the price at which it is offered is a commercial matter based on the assessment an insurer will make of the risks involved. This risk assessment process which insurance companies apply is essential if a company is to be able to provide its services over the longer term and continue to remain solvent. Unfortunately, this means on occasions they have difficulty approving certain types of business because the risk of claims based on previous experience is too high.

There have been no specific discussions between my Department and the Consumer Director about codes of practice in this area, as neither I nor the Financial Regulator are in a position under the existing insurance legislation framework to compel insurance companies to quote for business. In this regard, flood alleviation measures clearly have an important role to play in helping to address instances where households and businesses have experienced difficulties in obtaining insurance against flood damage.

Finally, it should be noted that the Government is very conscious of the difficulties caused to certain householders by their inability to obtain insurance against flood damage. This is a problem which will almost certainly have been exacerbated by the recent flooding and consequently will have to be considered as part of its broader review of this general area.