Eoghan Murphy (Dublin South East, Fine Gael)
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161. To ask the Minister for Finance if his attention has been drawn to insurance companies refusing home insurance, including but not limited to flood insurance, to householders in Dublin based on a supposed risk of flooding, even though there is no history or projected risk of flooding in the area in question. [30767/14]

Michael Noonan (Limerick City, Fine Gael)
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I am very much aware of the difficulties that the absence of flood insurance cover can cause to householders and businesses. However, neither I nor the Central Bank of Ireland, have the power to direct insurance companies to provide flood cover to specific individuals. The 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 need to make adequate provisioning to meet these risks.  As a matter of course, insurance companies carry out reviews of the risks they are prepared to insure against and sometimes make decisions to discontinue certain types of cover which they consider high risk. Insurance Ireland has indicated that 98% of policyholders have household insurance which includes flood cover.

Government policy in relation to flooding is focussed on the development of a sustainable, planned and risk-based approach to dealing with flooding problems.  The Office of Public Works (OPW) is carrying out an assessment of flood risk throughout the country under the National Catchment Flood Risk Assessment & Management (CFRAM) Programme.  This programme will include the  production of a comprehensive suite of flood risk maps and the development of flood risk management plans for the areas most at risk.  The plans will consider the best possible options, both structural and non-structural, for dealing with the risks on a long-term basis.  

This commitment is underpinned by a very significant capital works investment programme which will see up to €225 million being spent on flood relief measures over a five year period from 2012 to 2016. Works are completed on a prioritised basis.  Because of the cost and scale of these types of flood defence works, this approach will see benefits over the medium and long term.

The OPW and Insurance Ireland have agreed on a sustainable system of information sharing in relation to completed flood alleviation schemes. The outcome of this arrangement is that the insurance industry will have a much greater level of information and understanding of the extent of the protection provided by completed OPW flood defence works and will therefore be able to reflect this in assessing the provision of flood insurance to householders in areas where works have been completed.

The Deputy has raised the issue of flood insurance in the Dublin.  The OPW has been involved in a number of flood relief projects in various parts of Dublin.  The River Tolka scheme is completed and details of the completed works have been provided to Insurance Ireland.  Work is continuing on the River Dodder and River Wad schemes and work will begin soon on the River Poddle scheme.

My Department is undertaking a review of measures which could be taken to increase the availability of flood insurance cover, including the past experience and future proposals in other countries.  In assessing these, care has to be taken that the proposed solutions do not put in place arrangements which, over time, would weaken the provision of commercial insurance cover by the market with possible negative long-term consequences for the economy.

I am advised that in cases where individuals are experiencing difficulty in obtaining flood insurance and believe that they are being treated unfairly it is open to them to 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