Dáil Éireann Debate, Wednesday - 17 December 2025
174. Deputy Sorca Clarke asked the Tánaiste and Minister for Finance if he has assessed the insurance and financial risk exposure arising from increasingly frequent severe weather events, and whether specific supports will be developed for affected businesses and households in the midlands; and if he will make a statement on the matter. [72628/25]
Amharc ar fhreagraFirstly, I would like to acknowledge the impact of the damage caused by severe weather events on families, communities, and businesses.
Climate change and its consequences is a constantly evolving issue and we are consistently developing our policies and working with multiple stakeholders to quantify, understand, and tackle this complex issue. In relation to flooding, 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. Nationally, 55 schemes have been completed, at a cost of €550m, which are providing protection to over 13,000 properties and an economic benefit to the State in damage and losses avoided estimated to be in the region of €2 billion.
The Department 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.
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 installation. Where Government has invested in flood defences, it is the Government’s expectation that the industry should improve the level of cover in areas where 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. This is facilitated through the Memorandum of Understanding (MoU) between the OPW and Insurance Ireland. Under this arrangement, the OPW provide information on all completed flood defence schemes (including on demountable ones) to Insurance Ireland, the representative body of the insurance industry. In turn, insurers take into account this information when assessing exposure to flood risk within these areas. Officials from the Departments of Finance; Housing and Local Government, 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.
Recognising the long-term risk of climate change on insurers and insurability, the Department of Finance also continues to monitor international developments, engage with the Central Bank of Ireland, the insurance industry, and actively participate in cross-departmental working groups on insurance. It is important to note in this regard that the European Commission, IMF, EIOPA and the OECD are separately examining climate risk impacts for insurance and the concept of insurance protection gaps, with recommendations for policymakers to emerge in time. In this context, it may also interest the Deputy that the during the South African Presidency of the G20 Ireland was an active member of the Sustainable Finance Working Group at which the issue of the climate protection gap was discussed and considered. Taking account of all of these various international and EU developments, I believe that it is important that measures here align with those across the EU, so the Irish market is not ‘out of step’ with others.
Supports for households affected by severe weather events are the responsibility of the Department of Social Protection who administer the Humanitarian Assistance Scheme while the Emergency Humanitarian Flooding Scheme, which provides supports for businesses affected by flooding, falls under the Department of Enterprise, Tourism, and Employment.
Finally, I and Minister of State Troy, along with our officials, will continue to engage on all aspects of insurance reform, including the impact of severe weather events. These matters remain a priority for this Government and efforts continue to be made to encourage a responsive approach from the insurance industry. I will continue to encourage industry to take a responsive approach to treat policyholders promptly and in line with the protections afforded under the Consumer Protection Code in the wake of such events.
