John Paul O'Shea (Cork North-West, Fine Gael)
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334. To ask the Minister for Finance the reason an area (details supplied) is now in a red zone; the reason residents are only notified when applying for home insurance, which is now 60% more expensive; and if he will make a statement on the matter. [15346/25]

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 zoning and mapping for the purposes of assessing the level of risk that an insurer is willing to underwrite in relation to individual properties, please be aware that insurers use their own modelling tools for assessing such risks in the context of home insurance. The provision of home insurance 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).

With regard to the provision of flood cover, 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 can accept on a case-by-case basis. The Department has also been advised by Insurance Ireland that in certain cases, insurers must take into account specific circumstances such as the particulars of the property that may impact underwriting decisions.

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, with policy in relation to increasing flood insurance coverage 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. This will protect approximately 23,000 properties across various communities from river and coastal flood risk.

The OPW is the relevant authority on flood risk management in the State and have established a Memorandum of Understanding (MoU) between the Office of Public Works (OPW) and industry representatives, Insurance Ireland. Efforts are focussed on how the levels of cover might be improved in areas where flood defence works have been completed. The Departments of Finance; Housing and Local Government; and other stakeholders engage constructively with this process.

It may also be advisable for constituents to check for alternative insurance quotes and, in this regard, Brokers Ireland, the representative body for insurance brokers in Ireland, can be contacted at insurancequeries@brokersireland.ie for advice in sourcing cover and access to a wide range of providers and products. Insurance Ireland also operate an Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance and can be contacted at feedback@insuranceireland.eu.

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). The FSPO acts as an independent arbiter of disputes that consumers may have with their insurance company or other financial service provider. The FSPO can be contacted either by email at info@fspo.ie or by telephone at 01-567-7000. Investigations by the FSPO are free of charge to the complainant.

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 recently met with the CEOs of the major insurers where he strongly emphasised 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. These matters remain a priority for this Government and efforts continue to be made to encourage a responsive approach from the insurance industry.