Dáil Éireann Debate, Thursday - 26 March 2026
207. Deputy Ivana Bacik asked the Tánaiste and Minister for Finance his plans to reform flood insurance in Ireland; his views on insurance cover for persons living in areas with demountable flood defences; his views on legislating for compulsory insurance cover for those living in areas which are prone to flooding; and if he will make a statement on the matter. [23195/26]
View answerWhile neither I as Tánaiste and Minister for Finance, nor the Central Bank of Ireland, can intervene directly in the pricing or provision of insurance under EU Solvency II rules, ensuring that consumers have access to insurance cover remains a priority.
Addressing flood insurance alone cannot solve 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.
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.
The Action Plan for Insurance Reform 2025-2029 includes 4 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. 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.
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 operation. Where Government has invested in flood defences, it is expected that industry should improve the level of cover in areas where flood defences exist. Work is being progressed through the working group between the Office of Public Works (OPW) and Insurance Ireland. Furthermore, officials in my Department; the Department of Housing, Local Government and Heritage; 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.
Alternative flood insurance models have been considered by the Department of Finance in its review of policy in relation to flood insurance in 2016, and the ‘Public Consultation on Climate Change and Insurance’ in 2019. It was found that alternative approaches, including legislating for compulsory cover would have limited impact on the availability of flood cover. Mandating the provision of flood cover would result in, amongst other things: an increase in premia for all property insurance policies; the risk that insurers decide to withdraw from the market; and the potential contravention of EU rules.
More widely, Ireland continues to monitor developments and engage at EU and international level to understand what other countries are doing and assess approaches to flood insurance. These matters remain a priority for the Government and efforts continue to be made to encourage a responsive approach from the insurance industry.
