I propose to take Questions Nos. 434 and 435 together.
In response to Parliamentary Question No. 207 of 26 March 2026, I outlined the current work of the Department of Finance concerning Action 17 of the Action Plan for Insurance Reform 2025-2029.
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. 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.
My officials have held meetings with multiple stakeholders, a number of Departments; various agencies (including the Office of Public Works; Táilte Éireann, LGMA and the NTMA); the Central Bank of Ireland (CBI), and industry participants (including Insurance Ireland, JBA Consulting and Gamma Risk) and meetings with representatives from Flood Re in the UK and the Caisse Centrale de Réassurance (CCR) in France. A workshop was also held in March with the CBI, the Insurance Ireland Flood Policy Taskforce and with other industry participants and stakeholders (including modelling agencies, reinsurers and brokers) to discuss the flood protection gap in Ireland, assess demand for policy in this area and to learn from other countries.
In order to inform any decision as to whether further intervention is required, it is important to establish why the insurance market cannot currently provide adequate coverage and the reasons why a gap exists. As such, as part of its considerations the Department will seek to ensure: the market remains involved in the provision of cover and avoid any moral hazard where the Exchequer becomes responsible for flood insurance cover; and that any proposed measures do not lead to a sharp increase in premiums; less risk reduction and fewer adaptation measures; lower risk awareness; or inadvertently widening rather than narrowing the insurance protection gaps over time. Should there be any new policy proposals, stakeholders will have the opportunity to input via public consultation, which is a key part of the policy development process.
As noted in my response to Parliamentary Question No. 207 of 26 March 2026, alternative flood insurance models have been considered by the Department of Finance in its review of policy in relation to flood insurance in 2016. This Report is available at: www.gov.ie/en/office-of-public-works/publications/inter-departmental-flood-policy-coordination-group/#reporting-of-the-group.
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. It is a commercial decision for insurers
assess the relevant risks and price insurance contracts in line with their assessment of the potential
frequency and severity such flood events. Mandatory insurance provision could risk the withdrawal of some insurers from the flood insurance market, make the market unattractive for new entrants, ultimately leading to less market competition, higher prices, and the widening of the existing flood protection gap.
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. The Interdepartmental Flood Policy Co-ordination Group continues to oversee the Government’s flood risk policy and use the evidence in these Plans to ensure that all measures to manage and mitigate flood risk in Ireland are implemented to protect communities. Minister of State Troy also recently met with the Minister of State in the Department of Housing, Local Government, and Heritage, and the Minister of State in the Office of Public Works to discuss governance arrangements for flood relief schemes and investment in risk reduction, insurance availability and coverage in flood risk areas.
My officials will continue to monitor developments at EU and international level and assess flood insurance matters, including through participation in the OPW and Insurance Ireland working group. These matters remain a priority for this Government and efforts continue to be made to encourage a responsive approach from the insurance industry.
