Holly Cairns (Cork South West, Social Democrats)
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80. To ask the Minister for Finance what steps he is taking to reform the provisions of flood insurance. [3064/23]

Michael McGrath (Cork South Central, Fianna Fail)
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Current Government policy in relation to flood insurance coverage is focused on the development of a sustainable, planned and risk-based approach to managing flooding. Accordingly, €1.3 billion has been committed to the delivery of flood relief schemes over the lifetime of the National Development Plan to 2030. This will protect approximately 23,000 properties across various communities from river and coastal flood risk. This investment is complemented by a Memorandum of Understanding (MoU) between the Office of Public Works (OPW) and industry representatives, Insurance Ireland.

Arising from this approach, data from both Industry representatives and the Central Bank of Ireland indicate that flood insurance coverage is relatively high, and has indeed increased since 2015. However, it is acknowledged that some households are still experiencing difficulties, particularly in areas with demountable flood defences. These systems require human intervention in terms of their deployment. This issue is the subject of the MoU working group between the Office of Public Works (OPW) and Insurance Ireland. Officials from the Department of Finance and other stakeholders also engage constructively with this process.

In terms of reforming the provision of flood insurance, it is important to also acknowledge that the provision and price of insurance is a commercial matter for insurers, based on an assessment of the risks that such companies are willing to accept. Under the EU Solvency II Directive, neither I, nor the Central Bank of Ireland can compel insurers to provide such cover. Furthermore, the Department of Finance has previously reviewed other models such as compulsory insurance and it was found that alternative approaches would likely have a limited impact on the availability of flood cover.

As has been the case, the Department of Finance will continue to monitor and assess any flood insurance matters, including through: its participation in the OPW and Insurance Ireland Working Group; actively encourage industry to have a more responsive approach to the matter; engage with the Central Bank of Ireland; and consider domestic and international policy developments on climate insurance issues as they arise.

Finally, please be assured that both Minister McGrath and I will engage on all aspects of insurance reform, including flood cover issues, and that every effort is being made to encourage a responsive approach from the insurance industry.