785. Deputy Charles Ward asked the Tánaiste and Minister for Finance the steps being taken to address circumstances where homeowners or prospective homeowners are unable to obtain buildings insurance because a property is located within a designated flood-risk area, with particular reference to the impact this is having on access to mortgage finance; if he will examine the interaction between insurance availability and mortgage lending in such cases; and if he will make a statement on the matter. [62378/26]

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.

In relation to the general issue of mortgages, there is a broad legal and regulatory framework which governs the provision of residential mortgage credit to consumers. However, within this general regulatory framework it is then a commercial matter for individual lenders to determine their own lending policies and loan underwriting criteria, including in relation to the nature and type of collateral acceptable for mortgage lending purposes. Therefore, the decision to grant or refuse a mortgage application, or to set any appropriate conditions which will have to be fulfilled in order to drawdown mortgage credit (such as a requirement on the prospective borrower to obtain and put in place an appropriate policy of insurance on the property which is to act as security for the mortgage loan) is a business matter for an individual lender.

Insurance Ireland has previously informed the Department of Finance that insurers will generally take into account the claims history of the individual risk when deciding what underwriting action to take. Insurers also assess the risk of flooding in the area and consider any flood protection measures implemented by the OPW or local authorities when making their underwriting decisions. The decision on whether to offer insurance, level of premiums charged, and the policy terms applied are matters for individual insurers. Insurance companies make commercial decisions on the provision of insurance cover based on their assessment of the risks they would be accepting on a case-by-case basis.

In terms of the availability of flood insurance, the Central Bank of Ireland has undertaken extensive research into the nature and scale of the Flood Protection Gap in Ireland. They found that 1 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.

Building on the work carried out by the Central Bank, 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 is a multifaceted policy area, which involves a wide range of stakeholders. As such, Government recently approved the establishment of a Flood Insurance Protection Gap Working Group to progress a time bound work programme in relation to flooding and flood insurance. This Working Group will be tasked with identifying and assessing potential feasible actions, and its work will inform the development of policy in relation to the flood insurance protection gap.

Government's approach seeks to ensure that the market remains involved in the provision of cover and any proposed measure does 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.

These matters remain a priority for this Government and efforts continue to be made to encourage a responsive approach from the insurance industry.