Written answers

Tuesday, 1 July 2025

Department of Finance

Insurance Coverage

Photo of James GeogheganJames Geoghegan (Dublin Bay South, Fine Gael)
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280. To ask the Minister for Finance for an update on the new action plan for insurance reform, with specific regard to flood insurance; if the action plan will recommend changes to the memorandum of understanding between the OPW and Insurance Ireland to increase obligations on insurance companies to extend coverage to people in low-risk flood zones; and if he will make a statement on the matter. [36106/25]

Photo of Paschal DonohoePaschal 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. Working with stakeholders such as OPW and Insurance Ireland to enhance collaboration and information sharing on the climate protection gap is a key focus of the Government’s policy to develop a sustainable, planned and risk-based approach to managing flooding.As the relevant authority on flood risk management in the State, the OPW has established a Memorandum of Understanding (MoU) with Insurance Ireland. Under this arrangement, the OPW provide information on all completed flood defence schemes to Insurance Ireland. In turn, insurers take account of 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.

As the Deputy has noted, the Government is currently developing a new Action Plan for Insurance Reform. This new Action Plan will focus on encouraging further competition in the market and working with stakeholders to enhance availability and affordability across all types of insurance, including flood insurance.

The public consultation phase of the Action Plan closed on Monday 19 May after a three-week period. Over seventy submissions were received from industry and community stakeholders. The new Plan will build on the progress of the 2020 Action Plan, which delivered significant achievements, most notably the rebalancing of the Duty of Care, reforming the Injuries Resolution Board, the introduction of new Personal Injuries Guidelines, the establishment of the Office to Promote Competition in the Insurance Market, the banning of price walking in home and motor insurance markets.

Minister of State Troy, together with officials in the Department of Finance, have reviewed the feedback received and are in the process of finalising a list of actions for the new Action Plan for Insurance Reform. The new Action Plan will focus on a number of actions set out under key themes, including the climate protection gap.

It is my intention that a draft Action Plan will be considered at the forthcoming Insurance Cabinet Sub-group meeting and subsequently that the final Acton Plan will be agreed at Government level. After that I would expect that we will be in a position to publish the new plan in line with our commitments in the Programme for Government. As the Deputy will appreciate, details of specific action points cannot be confirmed until they have been approved through the appropriate channels.

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