Bobby Aylward (Carlow-Kilkenny, Fianna Fail)
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86. To ask the Minister for Finance the level of engagement that has taken place between his Department and the insurance industry to ensure that appropriate insurance is available to persons residing in an area in which flooding has never occurred but who are being excluded from cover, en masse, by insurance providers due to their Eircode; his views on such practices; the measures which have been implemented by his Department to hold insurance providers to account and protect the consumer in such instances; and if he will make a statement on the matter. [12596/17]

Michael Noonan (Limerick City, Fine Gael)
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I am conscious of the difficulties that the absence of flood cover can cause to householders and businesses alike. 

However, you should be aware that the provision of insurance is a commercial matter for insurance companies, which has to be based on a proper assessment of the risks they are accepting.  This assessment will in many cases include insurers own presumptions based on their private modelling and research.  Consequently, neither the Government nor the Central Bank 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.  This position is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products. 

Government policy in relation to flooding is focused on the development of a sustainable, planned and risk-based approach to dealing with flooding problems. This in turn should lead to the increased availability of flood insurance.  To achieve this aim, there is a focus on:

- prioritising spending on flood relief measures by the Office of Public Works (OPW) and relevant local authorities,

- development and implementation of plans by the OPW to implement flood relief schemes, and

- improving channels of communication between the OPW and the insurance industry in order to reach a better understanding about the provision of flood cover in marginal areas.

This strategy is complemented by a Memorandum of Understanding between the OPW and Insurance Ireland, the representative body for insurance companies in Ireland, which provides for the exchange of data in relation to completed flood defence schemes which should provide a basis for the increased provision of flood insurance in areas where works have been completed.  In this regard, the Insurance Ireland/OPW working group, which the Department of Finance attends, now meets on a quarterly basis to support the information flow and improve the understanding of issues between both parties.  A further meeting of this working group is scheduled this month.

A sub-group has also been set up to explore the technical and administrative arrangements that may allow for the further sharing of data on flood insurance cover for those 300 areas where OPW has mapped flood risk through the CFRAM programme.  The first meeting of this sub-group was held in January.

Finally, as the Deputy will be aware, the consumer has already recourse to the Financial Services Ombudsman to make a complaint in relation to any dealings with a Financial Services or Insurance provider during which they feel they have been unfairly treated.  In addition, individuals who are experiencing difficulty in obtaining insurance or believe that they are being treated unfairly may contact Insurance Ireland which operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to insurance.