Mattie McGrath (Tipperary, Independent)
Link to this: Individually | In context | Oireachtas source

54. To ask the Minister for Finance if his attention has been drawn to the implications that have been imposed on houseowners, landowners and in particular houseowners whose home insurance has substantially increased whereby other insurance providers will not quote homeowners who have now seen their homes brought under the possible 100-year flood map following CFRAM's recent revised national flood hazard maps; his plans to deal with this in the future; and if he will make a statement on the matter. [10521/18]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I am conscious of the difficulties that the absence or withdrawal of flood insurance cover can cause to homeowners and businesses, and that is one of the reasons the Government has been prioritising investment in flood defences over the last number of years. 

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 willing to accept. 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. 

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.  

The core strategy for addressing areas at potentially significant risk from flooding is the OPW Catchment Flood Risk Assessment and Management (CFRAM) Programme. The CFRAM Programme focussed on 300 Areas for Further Assessment (AFAs) including 90 coastal areas, mainly in urban locations nationwide, identified as being at potentially significant risk of flooding. The proposed feasible measures, both structural and non-structural, identified for AFAs are outlined in Flood Risk Management Plans.  

I am advised by the OPW that the finalised Flood Risk Management Plans were submitted to the Department of Public Expenditure and Reform in Summer 2017 for an independent review of the environmental assessments. Having now received the outcomes of the independent review, the Commissioners of Public Works expect in the coming weeks to formally submit the Flood Risk Management Plans for my approval.

It is important to note that the flood maps are community based maps and provide a useful resource for planning and emergency response and cannot be used for commercial purposes. The insurance industry uses its own flood modelling tools for assessing the level of risk to individual properties.

Finally, you should be aware that 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 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.