Michael McGrath (Cork South Central, Fianna Fail)
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Question 59: To ask the Minister for Finance if his attention has been drawn to the fact that some insurance companies are refusing to provide house insurance cover in respect of all residential properties in certain towns because of a deemed subsidence risk; if he has any concerns about such a practice from a competition point of view; and if he will make a statement on the matter. [1416/12]

Michael Noonan (Limerick City, Fine Gael)
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Neither the Central Bank nor I, as Minister for Finance, have powers to compel insurance companies to quote for business. The decision to provide any specific form of insurance cover and the price at which it is offered is a commercial matter for individual insurers. I am advised that individual insurers make their own decisions in respect of areas that are deemed to be of risk of subsidence, based on their own knowledge and on company claims experience. Insurance companies compete with each other for business. They also consider the claims history of individual properties and the relevant geographical and geological features of the area when deciding what premium to charge and what terms and conditions to apply.

Insurers report that such underwriting actions are taken in the interests of policy holders in general to keep household premiums affordable.