Patrick Costello (Dublin South Central, Green Party)
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254. To ask the Minister for Finance in circumstances where individuals live on a designated flood plain, such as near the Camac, but which has never flooded, the options available to them where there is only one insurance company willing to insure them and the monopoly results in annual price increases. [44146/24]

Jack Chambers (Dublin West, Fianna Fail)
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In my role as Minister for Finance, I have responsibility for the development of the legal framework governing financial regulation. However, neither I, nor the Central Bank of Ireland, 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. This position is reinforced by the EU framework for insurance which expressly prohibits Member States from doing so.

Current Government policy is focused on the development of a sustainable, planned and risk-based approach to managing flooding. Preventing flooding is the best approach to reducing flood risk and increasing flood insurance capacity. 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 Insurance Ireland. The current position regarding the flood protection gap, based on recent analysis conducted by the Central Bank of Ireland, is that approximately 95% of (i.e. 19 of 20) buildings in Ireland have good access to flood insurance.

However, I am conscious of the difficulties that the absence or withdrawal of flood insurance cover can cause to homeowners and businesses. Focusing on areas near the Camac River, the Office of Public Works (OPW) has informed my Department that the Camac River was covered by the Catchment Flood Risk Assessment and Management (CFRAM) Programme. Dublin City Council and South Dublin County Council in partnership with the OPW, have commissioned the River Camac Flood Alleviation Scheme to address flooding within the catchment of the Camac River. Engineering consultants were appointed in October 2019 and the scheme is currently at Stage 1: Scheme Development and Preliminary Design. An emerging preferred option for the scheme is expected in Q2 2025. As the emerging preferred option becomes clearer a Public Consultation Day will be arranged. Updates are available on the scheme’s website.

The Department of Finance also continues to engage with multiple stakeholders on the flood protection gap and encourages further collaboration and information sharing between the various stakeholders, including both the OPW and Insurance Ireland. The Department of Finance will continue to monitor and assess any flood insurance matters, including through: its participation in an 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.

Furthermore, Minister of State Richmond, has also met up with the CEOs of the main insurers in the Irish market this year. He has reiterated: (i) the expectation that insurers deal with affected policyholders fairly and in accordance with the Central Bank of Ireland Consumer Protection Code; and (ii) the need to take a reasonable approach to the provision of cover where properties are proven to be in areas protected by flood defences.

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.