Ivana Bacik (Dublin Bay South, Labour)
Link to this: Individually | In context | Oireachtas source

815. To ask the Minister for Public Expenditure and Reform the position of the memorandum of understanding between the representative body for insurance companies in Ireland, Insurance Ireland and the Office of Public Works in relation to flood insurance; and if his attention has been drawn to instances where consumers have been unable to avail of flood insurance due to a non-acceptance of the memorandum of understanding by insurance companies [42534/25]

Kevin Moran (Longford-Westmeath, Independent)
Link to this: Individually | In context | Oireachtas source

The Department of Finance has overall responsibility for policy matters in relation to insurance, including flood insurance. Government policy on flood insurance is centred on significant investment in sustainable flood risk management and the exchange of information between the insurance industry and the Office of Public Works (OPW) on completed flood relief schemes, as outlined under. The number of flood relief schemes at design and construction, has trebled to some 100. When completed the programme of flood relief schemes will protect approximately 23,000 properties across various communities from river and coastal flood risk.

The Department of Finance has advised that it continues to engage with the insurance industry on all aspects of insurance reform, including flood cover issues. These matters are a priority for the Government and efforts continue to be made to encourage a responsive approach to the provision of flood insurance from the insurance industry.

The insurance industry has its own flood modelling tools for assessing the level of risk that it is willing to underwrite in relation to individual properties. The decision on whether to offer insurance, the 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. Neither the Minister for Finance or the Central Bank of Ireland can direct the provision or pricing of insurance products, in accordance with the EU framework for insurance (Solvency II Directive).

The OPW has a Memorandum of Understanding (MoU) with Insurance Ireland. The MoU sets out principles of how the two organisations work together to ensure that appropriate and relevant information on completed schemes is provided to insurers to facilitate, to the greatest extent possible, the availability to the public of insurance against the risk of flooding.

While the MoU does not guarantee the availability of insurance, Insurance Ireland members have committed to take into account all information provided by the OPW when assessing exposure to flood risk within these protected areas.