786. Deputy Charles Ward asked the Tánaiste and Minister for Finance if he has engaged with the Central Bank and mortgage lenders regarding the circumstances in which a mortgage application is refused or cannot proceed because the applicant cannot obtain flood insurance for the property being purchased; if mortgage lenders have a uniform policy in relation to properties located within flood-risk zones; if lenders are required to refuse mortgage finance where flood cover is unavailable; if alternative forms of risk mitigation or security can be accepted in such circumstances; and if he will make a statement on the matter. [62379/26]

The Central Bank of Ireland has statutory responsibility for the regulation of mortgage lending by banks and other Central Bank regulated mortgage lending institutions operating in Ireland.

There is a broad legal and regulatory framework in place which governs the provision of mortgages to consumers, including the provisions of the Consumer Credit Act and the Central Bank macro prudential mortgage lending rules.

However, within this general regulatory framework it is a commercial matter for individual lenders to determine their own lending policies and loan underwriting criteria.

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 and as Minister I have no function in relation to such matters.

As independent regulator, the Central Bank has indicated that it expects all regulated firms to take a consumer-focused approach and to act in their customers’ best interests at all times.

If a mortgage applicant is not satisfied with how a regulated firm is dealing with them in relation to an application for credit, or they believe that the regulated firm is not following the requirements of the Central Bank’s codes and regulations or other financial services law, they should make a complaint directly to the regulated firm.

If the mortgage applicant is still not satisfied with the response from the regulated firm, he or she can refer the complaint to the statutory Financial Services and Pensions Ombudsman (FSPO).

While I am aware of the difficulties that the absence of flood insurance cover can cause to households and businesses, the provision of new flood cover or the renewal of existing flood cover is a commercial matter for insurance companies. This is based on an assessment of the risks they are accepting and the need to make adequate provisioning to meet these risks.

In cases where individuals are experiencing difficulty in obtaining flood insurance and believe that they are being treated unfairly it is open to them to contact Insurance Ireland which operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to insurance.

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 to 2030. This will protect approximately 23,000 properties across various communities from river and coastal flood risk.

In terms 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 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.

Following discussions at the Cabinet Sub-Committee on Insurance Reform in May, it was agreed that a Flood Insurance Protection Gap Working Group would be established.

It was announced in July that the Working Group which is being set up by the Department of Finance will be comprised of stakeholders from government including the Central Bank.