Michael McGrath (Cork South Central, Fianna Fail)
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10. To ask the Minister for Finance his views on insurance companies refusing flood insurance cover to householders and businesses in areas where flood relief schemes have been completed by the Office of Public Works to the required European Union standard and have proven to be effective; if he will take any action in this area; and if he will make a statement on the matter. [1321/16]

Michael Noonan (Limerick City, Fine Gael)
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I am aware of the difficulties that the absence of flood insurance cover can cause to householders and businesses. However, the provision of insurance cover and the price at which it is offered is a commercial matter for insurance companies and is based on an assessment of the risks they are willing to accept and adequate provisioning to meet those risks. In my role as Minister for Finance, I have responsibility for the development of the legal framework governing financial regulation.  Neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products or have the power to direct insurance companies to provide flood cover to specific individuals.

Government policy in relation to flooding is focused on the development of a sustainable, planned and risk-based approach to dealing with flooding problems, with a view to addressing the increased availability of flood insurance. To achieve this aim, there is a focus on prioritising spending on flood relief measures, development and implementation of plans by the Office of Public Works (OPW) to implement flood relief schemes. This strategy is complemented by a Memorandum of Understanding between the OPW and Insurance Ireland which provides for the transfer by the OPW of data in relation to completed flood defence schemes to the insurance industry, which should provide a basis for the increased provision of flood insurance in areas where works have been completed. 

The current flooding crisis has raised issues in relation to insurance and flooding. The Taoiseach and some other of my colleagues in Government met the insurance industry on Tuesday to discuss the industry role in providing flood insurance and to obtain industry views on flood insurance issues such as those outlined in the Deputy's question. The Taoiseach has asked the insurance industry to revert back within two weeks following further consideration of their approach to the provision of insurance in areas where demountable defences are in place, along with details on the availability of insurance in areas with flood defences. I  would also note that my own officials are undertaking detailed research on alternative options with the potential to ensure greater availability of flood insurance. This will be in the form of a comparative analysis of the different approaches to flood insurance in other countries.