The Government recognises that the cost of flood insurance can be challenging for affected households. Insurance companies operate independently when determining the availability and pricing of their products, and neither I, as Tánaiste and Minister for Finance, nor the Central Bank of Ireland has the legal authority to compel insurers to offer cover for specific risks. These restrictions derive from the EU’s Solvency II Directive, which expressly prevents Member States from intervening in insurers’ pricing or underwriting decisions. The most recent CSO Consumer Price Index data from April 2026 shows that the cost of home insurance has decreased by almost 3% in the past year.
Insurers rely on their own claims’ histories, risk assessments, and cost projections when deciding whether to provide cover. Factors such as inflation in building materials and labour are also influencing premium levels across the sector.
However, the Government is taking a comprehensive and proactive approach to improving competition in the Irish insurance sector, through the efforts of the Office for the Promotion of Competition in the Insurance Market (OPCIM). The OPCIM continues to prioritise increased competition and capacity across the insurance sector and plays a key role in engaging with insurers, brokers, and a wide range of sectoral representatives to address gaps in insurance availability and encourage new market entrants.
A total of €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 also 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.
Where Government has invested in flood defences, the expectation is that industry should improve the level of cover in areas where completed flood defences exist. In order to address the issue of flood coverage levels in areas with demountable defences, continued engagement with all relevant stakeholders is key. Officials in my Department, the OPW, and 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.
Homeowners having difficulty obtaining insurance, flood or otherwise, should note that assistance is available through Insurance Ireland’s Information Service and Brokers Ireland. Brokers Ireland has access to a wide range of providers and products and offers advice for customers in sourcing various types of cover. Additionally, Insurance Ireland operate an Insurance Information Service for those who have queries, complaints, or difficulties in relation to obtaining insurance.
The Government is firmly committed to addressing the cost and availability of insurance, including home insurance, through its insurance reform agenda and will continue to engage with industry to encourage a responsive approach.
