Thomas Gould (Cork North Central, Sinn Fein)
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176. To ask the Minister for Finance if flood insurance protection will be available following the Blackpool flood relief scheme; and for an update on same. [36360/24]

Jack Chambers (Dublin West, Fianna Fail)
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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. In terms of the challenges associated with obtaining flood cover, please be aware that the provision of such cover is a commercial matter for insurance companies, based on an actuarial assessment of the risks they are willing to accept. Government cannot interfere in the provision or pricing of insurance, or direct as to what cover is provided, as is reinforced by the EU framework for insurance (Solvency II Directive).

Current Government policy in relation to increasing flood insurance coverage is focused on the development of a sustainable, planned and risk-based approach to managing flooding problems. Accordingly, €1.3 billion has been committed to the delivery of flood relief schemes over the lifetime of the National Development Plan (NDP) to 2030. To date, 55 schemes have been completed, which are providing protection to over 13,000 properties and an economic benefit to the State in damages and losses avoided estimated to be in the region of €2 billion. In terms of the outcome of the current approach to flood insurance, it should be noted that according to EU level data, Ireland has an above average rate of flood cover relative to the EU.

Focusing on the Blackpool Flood Relief scheme, the Office of Public Works (OPW) has informed my Department that this scheme was initiated in 2013 following major flooding in 2012, and is expected to provide protection against the 100-Year flood (1% Annual Exceedance Probability) from the Bride River for some 293 properties. The scheme has an estimated budget of €18 million. The Minister for Public Expenditure, National Development Plan Delivery and Reform is still assessing the significant environmental effects of the scheme, with the OPW conducting the relevant surveys and will submit its results by November 2024.

The OPW has informed the Department that the primary purpose of the Blackpool scheme is to address fluvial or river flooding in turn protecting properties and businesses and the road network. These direct defences will be by way of a culvert that runs from the Commons Road /Orchard Court area to Blackpool Church. It will also involve the erection of walls in areas where the river bank is low, most notably both sides of the river from North Point Business Park to Blackpool Retail Park. There will be no demountable defences used in the Blackpool Flood Relief Scheme.

Both Minister of State Richmond and I have repeatedly emphasised to the CEOs of the major insurers in Ireland the Government’s reasonable expectation is that the industry should improve the level of cover in areas where there has been significant investment in flood relief schemes. The current position based on the Central Banks 2021 survey results is that in the region of 90 per cent of those who have a household policy have flood cover where fixed flood defences are in place.

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.

Recognising that the long-term risk of climate change on insurers and insurability, the Department of Finance continues to monitor international developments, engage with the Central Bank of Ireland, the insurance industry and actively participate in cross-departmental working groups on insurance. It is important to note in this regard that the European Commission, IMF, EIOPA and the OECD are separately examining climate risk impacts for insurance and the concept of insurance protection gaps, with recommendations for policymakers to emerge in time. It is important that developments here align with those across the EU so the Irish market is not ‘out of step’ with others.

Finally, I and Minister of State Richmond, along with our officials, will continue to engage on all aspects of insurance reform, including flood cover issues. These matters remain a priority for this Government and efforts continue to be made to encourage a responsive approach from the insurance industry.