Written answers

Thursday, 14 April 2016

Department of Public Expenditure and Reform

Flood Risk Insurance Cover Provision

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Social Democrats)
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150. To ask the Minister for Public Expenditure and Reform the options open to a person (details supplied) in Dublin 11 who is paying exorbitant home insurance premiums because of an estate being incorrectly geo-coded as a flood risk; the steps he has taken to prevent such incorrect geo-coding; and if he will make a statement on the matter. [7154/16]

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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The Office of Public Works (OPW) has no role or function in relation to the oversight or regulation of insurance matters. The provision of insurance cover, the level of premiums charged and the policy terms applied are matters for individual insurers. Insurance companies make commercial decisions on the provision of insurance cover based on their assessment of the risks they would be accepting on a case-by-case basis.

The Memorandum of Understanding between the OPW and Insurance Ireland, which was signed on 24 March 2014, outlines the principles of agreement between the parties on the provision of information to insurers to facilitate, to the greatest extent possible, the availability to the public of insurance against the risk of flooding. The OPW is committed to providing Insurance Ireland with data on all completed OPW flood defence schemes showing the design, extent and nature of the protections offered by these works. Insurance Ireland members will then take into account all information provided by the OPW when assessing exposure to flood risk within these areas.

In accordance with the Memorandum, the OPW has provided Insurance Ireland with data on sixteen completed OPW flood defence schemes including the River Tolka in Dublin City, Fingal and Meath. Details of the information provided to the Insurance Sector is available on the OPW website, . The location mentioned by the Deputy is not among the areas protected by the River Tolka scheme as it is not at risk of flooding from the River.

I am advised by the Minister for Finance that the EU framework for insurance expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval or provide systematic notification of certain matters, including general and special policy conditions and scales of premiums.

Insurance Ireland previously advised that insurers differentiate between risks by using various tools and data such as geocoding, their own individual company claims data, flood modelling data, secondary data, and the existence of adequate flood defences, etc. Insurers then decide whether to offer cover at normal terms, charge a higher premium, impose a higher excess or exclude flood cover. Insurers make their own individual decisions on whether to offer cover or what terms to apply.

Any person with an insurance-related query or complaint can contact Insurance Ireland's Insurance Information Service (01 676 1914 or iis@insuranceireland.eu). In addition, the Financial Services Ombudsman deals independently with unresolved complaints from consumers about their individual dealings with all financial service providers.

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