Aengus Ó Snodaigh (Dublin South Central, Sinn Fein)
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142. To ask the Minister for Finance the options available to vendors who, despite having home insurance themselves, cannot sell their home due to the prospective purchasers not being able to get the required home insurance (details supplied). [25362/17]

Michael Noonan (Limerick City, Fine Gael)
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I am conscious of the difficulties that the absence or withdrawal of flood insurance cover can cause to householders and businesses alike, and that is one of the reasons the Government has been prioritising investment in flood defences over the last number of years in order to minimise the risk of flooding. 

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 as they need to adequately provision to meet those risks.  In my role as Minister for Finance, I have responsibility for the development of the legal framework governing financial regulation, and 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.  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.

While it is not possible for me to comment in detail on individual cases without the full facts,  I am advised by the OPW that following the severe flood events in Dublin of October 2011, the Camac catchment in which Kilmainham is situated, was prioritised in the Catchment Flood Risk Assessment and Management (CFRAM) Programme being undertaken by the OPW. While no overall cost-beneficial solution was found for the Camac catchment within the CFRAM study, OPW has proposed to Dublin City Council (DCC) that DCC carry out a further assessment on a more localised basis. I am informed that this work is now being progressed by DCC and South Dublin County Council with assistance and funding provided by OPW.

Insurance Ireland has informed me that its members, since 1 June 2014, have factored data on all completed flood defence schemes, provided by the OPW, into its assessment of flood risk within these areas.  This information has been provided as part of an information sharing arrangement entered into between OPW and Insurance Ireland (Memorandum of Understanding). The nature of this arrangement is such that it should lead to a greater availability of flood cover in previously higher risk areas, and at better prices.

The most recent Insurance Ireland survey of approximately 85% of the property insurance market in Ireland indicates that of the 16 completed defence schemes, 90% of policies in areas benefiting from permanent flood defences include flood cover, while 77% of policies in areas benefiting from demountable defences include flood cover.  The particular issues in relation to the remainder of policies is actively being explored with the insurance industry through a working group in which the OPW, the insurance industry and the Department of Finance participate. Further meetings of this group are scheduled this month.

Finally, as the Deputy will be aware, a consumer can make a complaint to the Financial Services Ombudsman 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 flood insurance and 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.