Kevin Humphreys (Dublin South East, Labour)
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27. To ask the Minister for Finance in the event of insurance companies not providing flood cover to home owners and businesses where flood defences have been built with State funds, following a voluntary memorandum of understanding between the Office of Public Works and the insurance industry for the sharing of information regarding these defences, if he will introduce regulations or conditions on their operating licence by legislation or regulation through the Central Bank of Ireland to ensure homes can get cover; and if he will make a statement on the matter. [8245/14]

Michael Noonan (Limerick City, Fine Gael)
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The issue of flood cover and its unavailability in some instances is one with which I am very familiar. I am also very conscious of the difficulties that the absence of such cover can cause to householders and businesses. While the lack of availability of flood insurance affects a relatively small number of people, the consequences for these people are serious should their house or commercial premises be damaged by flooding. However, neither I, as Minister, nor the Central Bank, have the power to direct insurance companies to provide flood cover to specific individuals.

The issue of provision of new flood cover or the renewal of existing flood cover is a commercial matter for insurance companies, which is based on a proper assessment of the risks they are accepting and the making of adequate provisioning to meet these risks. In some cases flood insurance is not economically viable for insurance companies and, in the interests of keeping premiums affordable for policyholders in general, insurers decline flood cover for new business for some risks, or, in certain cases, need to withdraw flood cover at renewal. These are commercial decisions that insurers make having regard to the circumstances prevailing.

My colleague, Minister of State Hayes at OPW has taken the lead role in discussions with the insurance industry about improving the provision of insurance cover in areas where remedial works are being carried out and OPW is near agreement on a data-sharing platform which will facilitate the transfer of detailed information on completed OPW flood relief schemes on an on-going basis. This will allow the insurance industry to take the flood protection measures into account when assessing flood risk in localities where such flood measures have been completed.

While the agreement on the memorandum of understanding with the insurance industry is to be welcomed as a first step, ultimately, it will be a matter for the insurance companies themselves to decide how they will use the information provided on completed flood defence works but they are committing to take the information into account in their assessment of risk and it is to be expected that this will facilitate the provision of flood cover in areas that are protected by completed schemes.

The Central Bank's Consumer Protection Code sets out how the Central Bank requires insurance companies to treat consumers. The Code obliges insurers to act honestly, fairly and professionally in the best interests of its customers and that they must act with skill and diligence in the best interests of customers. The Code has a number of sections specifically dealing with insurance claims handling. The Central Bank of Ireland has no remit over the pricing of insurance products or the practices of insurers in relation to underwriting particular risks. Indeed the Central Bank, along with all E.U. Competent authorities is specifically restricted from doing so under the various European insurance directives.

In cases where individuals who are experiencing difficulty in obtaining flood insurance believe that they are being treated unfairly, they can contact Insurance Ireland which operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to insurance. Their service can be contacted at (01) 676 1914 or by email at .