Written answers

Friday, 16 September 2016

Department of Finance

Insurance Coverage

Photo of Maureen O'SullivanMaureen O'Sullivan (Dublin Central, Independent)
Link to this: Individually | In context | Oireachtas source

218. To ask the Minister for Finance the status of the engagement he has had with the Insurance Ireland regarding the situation in East Wall, Dublin 3, and the failure of insurance companies to grant home insurance specifically covering flooding to houses that have never been flooded and houses that are prone to flooding but in areas where substantial flood prevention work has been carried out; and if he will make a statement on the matter. [24618/16]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The provision of insurance cover 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 or businesses.

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 the OPW is carrying out assessments of 300 areas under the Catchment Flood Risk Assessment and Management (CFRAM) programme and each area will have a Flood Risk Management Plan (FRMP) by the end of 2016. Decisions on future investment in relation to flood risk management will be informed by the FRMP's. Dublin city is among the 300 areas of further assessment under the CFRAM programme. Work on the preparation of draft Flood Risk Management Plans for the Eastern Region (including Dublin City) is nearing conclusion, and OPW expect to publish the draft plans for public consultation in mid to late September.  

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.

I have been informed by the OPW that there are no flood protection works currently underway or planned in the East Wall area. The River Tolka Dublin City Flood Defence scheme provided protection to a significant part of the East Wall area of Dublin, mainly on the western side of the Dublin-Belfast railway line, and maps are available on the OPW website showing the protected areas. Details of the protection works were provided to Insurance Ireland by the OPW in accordance with the Memorandum of Understanding.

An Inter-Departmental Flood Policy Co-ordination Group has been established to examine the issue of flooding, and to ensure a whole of Government approach in the area of Flood Policy. This Group is chaired by Seán Canney TD, Minister of State with special responsibility for the Office of Public Works and Flood Relief. The OPW are the lead agency and have responsibility for submitting the final report of the group to Government.

As an input to the Inter-Departmental Group's work the Department of Finance has carried out a review of flood insurance with a particular focus on the strategies that other jurisdictions have implemented to increase the availability of flood insurance cover. This work examined a number of policy options and has made a number of recommendations. The completed report has been provided to OPW to feed into the final report of the Inter-Departmental Group.

Comments

No comments

Log in or join to post a public comment.