Jennifer Murnane O'Connor (Carlow-Kilkenny, Fianna Fail)
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233. To ask the Minister for Finance if there are plans for a State-backed thatched cottages insurance provision; and if he will make a statement on the matter. [21345/24]

Michael McGrath (Cork South Central, Fianna Fail)
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As the Deputy is aware, neither I, nor the Central Bank of Ireland, can interfere in the provision or pricing of insurance products. This is set out in the EU framework for insurance – the Solvency II Directive – and limits the actions that Government can take in relation to insurance for thatched properties. Nevertheless, I can assure the Deputy that this Government is committed, through the Action Plan for Insurance Reform, to improving the cost and availability of insurance for all consumers, businesses and community groups across the State.

I am afraid that there is no single legislative or administrative action that will immediately solve capacity issues in the thatch property insurance market. The Department of Housing, Local Government and Heritage (D/HLGH) has produced a report on fire safety in thatched structures, which was completed in November 2022. This found a high incidence of fire in thatched buildings in Ireland, when compared with other jurisdictions, and highlighted research indicating that the great majority of such events stem from a small number of causes, particularly solid fuel stoves. It outlined a number of relatively straightforward measures which should help substantially mitigate this risk. If the incidence of fire can be reduced, it is reasonable to expect that the improved risk profile will feed through to greater availability and lower premiums. As the Deputy will be aware, this fire risk to thatched properties has consistently been highlighted by insurers as a barrier to providing possible cover. Therefore, fire prevention remains the most impactful way to improve the insurance situation for the owners of such properties.

Government has taken proactive steps to tackle the fire safety issue. My officials have communicated directly with the relevant stakeholders in the insurance industry, in order to help develop a more balanced view of providing cover for thatched buildings. In addition, in October 2023, D/HLGH published and distributed public guidance (titled “Fire Safety in Thatched Properties”) based on the report findings, which will assist owners of thatched properties to reduce the identified risk posed by fire. In addition, since the beginning of 2024, D/HLGH has offered a pilot scheme to enable Department experts to visit thatch owners to provide advice on safety and fire prevention. This service is free of charge and has carried out approximately 60 inspections to date. I would strongly encourage any property owner, especially the individual that the Deputy has supplied information about his particular case, experiencing insurance issues to take up this service and follow any advice given in order to reduce the fire risk of their property.

Furthermore, D/HLGH also operates a number of schemes which are designed to help with conservation works to thatched buildings and other historic structures for the broader benefit of local communities and the wider public. Enquiries in relation to these grants should be directed to that Department

In addition, the Office to Promote Competition in the Insurance Market, which is chaired by Minister of State Richmond, continues to engage with various stakeholders on this issue. It was discussed during his recent engagement with insurance CEOs, where it was noted that these issues are not unique to Ireland and are experienced in other European jurisdictions.

There are currently no plans for a State-backed insurance scheme for thatch properties, or any other sector. Any such scheme would most likely require a substantial input of capital – most likely funded from the Exchequer – as well as appropriate expertise in the form of staffing to ensure compliance with the Solvency II rules. Most importantly, such a venture would have to charge market rates and could reduce competition in the market, as existing insurers may decide to stop writing business in certain business lines if the State becomes seen as the ‘insurer of last resort’. This is counter to Government policy in terms of encouraging competition and new entrants into the Irish market, bringing down prices and widening product choice for all consumers.

In conclusion, I would like to take this opportunity to assure the Deputy that securing a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland, including for thatched properties, remains a key policy priority for this Government.