Peter Cleere (Carlow-Kilkenny, Fianna Fail)
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312. To ask the Minister for Finance to address the difficulties homeowners have in obtaining home insurance based on the Eircode they have within a designated flood plain, despite the fact they have no claims for surplus of forty years; and if he will make a statement on the matter. [9576/25]

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. 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).

Insurance Ireland, the representative of the insurance industry in Ireland, has previously informed the Department that insurers will generally take into account the claims history of the individual risk when deciding what underwriting action to take. Insurers also assess the risk of flooding in the area and consider any flood protection measures implemented by the OPW or local authorities when making their underwriting decisions. The decision on whether to offer insurance, level of premiums charged, and the policy terms applied are matters for individual insurers. Insurance companies make commercial decisions on the provision of insurance cover based on their assessment of the risks they would be accepting on a case-by-case basis.

As reinforced by the new Programme for Government, the Government remains committed to protecting Ireland’s present and future generations by investing in climate adaptation measures to manage the impacts of extreme weather. 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. This will protect approximately 23,000 properties across various communities from river and coastal flood risk. Nationally, 55 schemes have been completed, at a cost of some €550m, which are providing protection to over 13,000 properties and an economic benefit to the State in damage 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. However, it is acknowledged that some households are still experiencing difficulties, particularly in areas with demountable flood defences which require varying degrees of human intervention in their installation. Where Government has invested in flood defences, I and Minister of State Troy have 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 demountable defences exist.

In order to address the issue of flood coverage levels in areas with demountable defences, continued engagement with all relevant stakeholders is key. This is facilitated through the Memorandum of Understanding (MoU) between the OPW and Insurance Ireland. Under this arrangement, the OPW provide information on all completed flood defence schemes (including on demountable ones) to Insurance Ireland, the representative body of the insurance industry. In turn, its members take into account this information when assessing exposure to flood risk within these areas. Officials from 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 would be advisable for constituents to check alternative insurance quotes and, in this regard, it may help your constituents to know that Brokers Ireland, the representative body for insurance brokers in Ireland, can be contacted in relation to this. They have access to a wide range of providers and products, and can offer advice for customers in sourcing cover. Additionally, Insurance Ireland operate an Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance.

Furthermore, where somebody feels a particular insurance provider has treated them unfairly, they have the option of making a complaint to the Financial Services and Pensions Ombudsman (FSPO). It acts as an independent arbiter of disputes that consumers may have with their insurance company or other financial service provider.

The Department of Finance will continue to monitor and assess flood insurance matters, including through its participation in the OPW and Insurance Ireland Working Group. Minister of State Troy is currently meeting with the CEOs of the major insurers and will continue to strongly emphasise to industry the need to take a reasonable approach to the provision of cover where properties are proven to be in low risk areas, including after investment in flood defences.

Finally, I and Minister of State Troy, 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.