Holly Cairns (Cork South West, Social Democrats)
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175. To ask the Minister for Finance the steps he is taking to ensure that once a flood relief scheme is officially complete that insurers cannot refuse to provide flood insurance or charge reasonable rates for same. [60367/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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As Minister for Finance, I have policy responsibility for the development of the legal framework governing financial services regulation, including for the insurance sector. It should be noted that the provision of insurance cover and the price at which it is offered is a commercial matter for those companies and is based on an assessment of the risks they are willing to accept. Therefore, under the EU Solvency II Directive, neither the Minister for Finance nor the Central Bank can compel insurers to provide such cover.

I acknowledge that while there has been an overall increase in the provision of flood insurance over the last number of years, some householders are still experiencing difficulties. This is particularly the case in areas with demountable flood defences. This is the subject of the Memorandum of Understanding working group between the Office of Public Works (OPW) and industry representatives, Insurance Ireland. The Departments of Finance; Housing and Local Government; along with other stakeholders engage constructively with this process on how the levels of insurance cover might be improved in areas where flood defence works have been completed.

It may also interest you to know that legislating for compulsory cover was an option considered by my Department in its review of policy in relation to flood insurance in 2016, and the ‘Public Consultation on Climate Change and Insurance’ in 2019. It was found that such an approach would have limited impact on the availability of flood cover as it would result amongst other things in: insurers pricing prohibitively for high-risk properties; an increase in the pricing of low-to-medium risk properties; and the risk that insurers decide to withdraw from the market.

The Department of Finance will continue to monitor and assess any flood insurance matters, including by participating in the OPW and Insurance Ireland Working Group, continuing to encourage industry to have a more responsive approach to the matter, engaging with the Central Bank of Ireland and assessing domestic and international solutions to these issues as they arise.

Finally, please be aware that Insurance Ireland, operates an Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance, which can be accessed at feedback@insuranceireland.eu. Likewise, Brokers Ireland, the representative body for insurance brokers in Ireland, can be contacted. They have access to a wide range of providers and products and can offer advice for customers in sourcing cover. They can be reached at 01 6613067.