I acknowledge the serious damage caused by recent flooding events and their impact on families, communities and businesses across Ireland. The Government remains committed to protecting Ireland’s current 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. In terms of flood insurance, the Central Bank of Ireland has undertaken extensive research into the nature and scale of the flood protection gap in Ireland. It found that one in 20 buildings - approximately 5% - has limited access to flood insurance and that 54% of this gap is concentrated in Dublin, Cork, Louth, Clare and Kildare. It found that one in 20 buildings, approximately 5%, have limited access to flood insurance and that 54% of this gap is concentrated in Dublin, Cork, Louth, Clare and Kildare. However, our recent experiences demonstrate that the impacts of flooding are not solely limited to those counties. The report notes that no single solution exists to address the flood protection gap. Building on the work carried out by the Central Bank, the Action Plan for Insurance Reform 2025 to 2029 includes four specific actions on flood and climate protection. With respect to action 17 of the action plan, the Department of Finance is currently engaging with multiple stakeholders on the development of a long-term strategic approach to the provision of flood insurance to consider potential solutions specific to Ireland to increase the availability and affordability of flood insurance. An update will shortly be provided to the Cabinet sub-committee on insurance reform. My officials will also continue to monitor developments at EU and international level and assess flood insurance matters, including through participation in the OPW and the Insurance Ireland working group. These matters remain a priority for the Government and efforts continue to be made to encourage a responsive approach from the industry.
Sentiment score: 0.13
EU legislation, the Solvency II directive, states that neither the Central Bank nor the Minister for Finance can compel insurance companies to provide insurance cover. The last action plan on insurance reform delivered but gaps remain, and we acknowledge that. That is why we published a new action plan on insurance last summer. We acknowledge that State intervention is needed. That is why there are four actions in the action plan targeting this area. One of those actions, a priority action, is to develop a long-term strategic approach to the provision of flood insurance. That will bring together the Central Bank, the insurance industry, the Department of Finance and the OPW. The insurance industry has already established a flooding task force and we expect proposals in the next month, which will feed into our Department’s stakeholder forum, which will also take place next month. The forum will bring together the Central Bank, insurance industry, Department of Finance and OPW to bring about a proposal to address this gap in the market.
Sentiment score: 0.00
The Government is dealing with this issue. That is why it is a number one priority in the action plan that was launched last year. The flood protection gap in this country is one of the lowest in the European Union. Under 5% of people cannot get access to flood insurance. I acknowledge that is of cold comfort to that 5%, but in terms of coverage from a European Union perspective, we have one of the lowest gaps in the EU. We are meeting with the industry and it has established a flood task force. The proposals are imminent, which will feed into the group that has been established by the Government, consisting of the OPW, the Department of Finance and the Central Bank. While I acknowledge there are people who cannot get access to flood insurance, this Government has not left them uncompensated. They have received funding through the humanitarian fund which is supported by the Government. I acknowledge there is a gap in the flood insurance market but that gap has been supported through Irish Red Cross funding put in place following every flooding incident. The most recent Red Cross funding put in place resulted in an increase in the funding paid to businesses that suffered flood damage.
Sentiment score: -0.04
I thank the Deputy for raising this important issue. I would like to acknowledge the severe impact the recent storm has had on families, communities and businesses across Ireland. In doing so, I also acknowledge the work of our emergency services, our local authorities, the Civil Defence and the very many organisations and individuals who worked tirelessly for their communities over the past few weeks. It is also important to state that the Minister for enterprise, Deputy Burke, and the Minister for Social Protection, Deputy Calleary, moved quickly to open the enhanced emergency humanitarian flooding support for impacted businesses, and emergency response payment scheme, to help businesses and homes to get back on their feet. As I outlined in my earlier reply, insurance reform, including increasing the affordability of and accessibility to insurance, including flood insurance, remains a key priority for the Government. The Action Plan for Insurance Reform 2025-2029 includes specific actions on flood and climate protection. My Department is currently engaging with multiple stakeholders on the development of a long-term strategic approach to the provision of flood insurance, to consider potential solutions specific to Ireland to increase the availability and affordability of flood insurance. An update on this work and the other specific actions in the plan will be provided at the upcoming Cabinet sub-group on insurance reform. This work will build on the extensive research undertaken by the Central Bank of Ireland into the nature and scale of the flood protection gap in Ireland, which identified that approximately 5% of buildings in Ireland that have limited access to flood insurance. We know that flood insurance alone cannot address the totality of the flood protection gap, which is why the Government remains focused on the development of a sustainable, planned and risk-based approach to managing flooding. We are investing in climate adaptation measures to manage the impacts of extreme weather, to protect Ireland’s present and future generations. A total of €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.
Sentiment score: 0.17
I thank Deputy McCarthy for making those very clear and valid points this evening. The Tánaiste has just reminded me that the Cabinet committee on climate is meeting in the morning and one of the items on the agenda is consideration of what interim measures can be introduced in advance of permanent flood defences going in to particular areas. We need to speed up mitigation measures in areas such as those mentioned by the Deputy. I reiterate in relation to the action plan on insurance reform that there are ten priority actions, one of which is in the area of delivering flood insurance to fill the gap that is there. Taking a long-term, strategic approach to the provision of flood insurance will involve building on the work that has already been undertaken by the Central Bank, as well as working with the insurance industry, the Department of Finance and the OPW to design a scheme that will be fit for purpose for Ireland. The insurance industry has already established a flooding task force. I met a member of that task force earlier today who informed me that it will have proposals for consideration by Government in the next number of weeks. Work is well under way in terms of addressing the flood insurance gap that currently exists.
Sentiment score: 0.19
The Deputy mentioned particular areas where flood defences have been put in place but flood insurance cover remains problematic. That is a big concern because the Government has invested tens of millions of euro in permanent flood defence mechanisms but the insurance companies have not responded adequately. I met the Minister of State, Deputy Moran, earlier today and am due to meet with the Minister of State, Deputy Cummins, next week to discuss ensuring that outstanding service level agreements that are in place are adhered to in order to give insurance companies confidence to come in and provide insurance where the State has made the necessary investment. The Deputy also mentioned Flood Re, a scheme that is in operation in the UK. The Department of Finance explored that scheme back in 2016 but at that time it was felt that it was not a good fit for Ireland. However, in the context of the new action plan on insurance reform, the Department is re-evaluating that scheme, as well as looking at other international models to see how they can feed into the work that is ongoing here from an Irish perspective. The Central Bank, the Department of Finance, the OPW and the insurance companies, through Insurance Ireland, are coming together in March to examine what options we can look at implementing from an Irish perspective that will fit our model here.
Sentiment score: 0.04