Work to establish a National Flood Insurance Scheme to protect homeowners, renters and businesses who are increasingly exposed to flood risk must start now, a Fine Gael Senator has said.

Senator Linda Nelson Murray said communities across Ireland are facing more frequent and severe flooding, yet thousands of properties remain unable to secure affordable flood insurance.

Senator Nelson Murray explained: “A flood insurance scheme would allow insurers to continue offering cover in high-risk areas by sharing the cost of extreme events, ensuring that people are not left financially devastated through no fault of their own.

“Similar schemes are available in other jurisdictions such as the Flood Relief Scheme in England which compensates for households, but countries like Spain (Consorcio de Compensación de Seguros CCS) and France (Natural Disaster Cover + State Reinsurance) CatNat cover both households and businesses, and this is a must for Ireland. This approach has shown that it can stabilize the insurance market.

“The past few weeks has shown us the devastating impact flooding is having in Ireland. Communities like Enniscorthy have been left picking up the pieces of their homes and livelihoods.

“Without action to establish a proper financial safety net, those living in flood prone areas face the prospect of being uninsured, unable to secure mortgages or forced to absorb losses that could have been mitigated through a functioning insurance system. My Fine Gael colleagues Deputy Naoise Ó Muirí and Deputy Noel McCarthy have also raised this issue in the Dáil this week.

“The Emergency Response Payment for households and the Emergency Humanitarian Flooding Schemes will provide a great support to businesses and community, voluntary and sports organisations affected by flooding.

“However, I am calling on government to act immediately and work with insurance regulators and communities to design and implement a Flood Insurance Scheme that is operational before next winter.

“At an EU level, the European Insurance and Occupational Pensions Authority have discussed creating an EU-level public private reinsurance approach to supplement national schemes and more broadly cover natural catastrophe risks including floods. Our climate is changing, Ireland is experiencing more storms while weather conditions are getting wetter. 2023 was the wettest year on record in Ireland and rainfall in the early months of 2024 was also above average.

“This must be accompanied by continued investment in flood defences and climate adoption, but insurance protection cannot wait. Flooding is no longer a once in a generation event. It is a recurring reality and there is clear evidence that a National Insurance Scheme is now a necessity to protect homes, livelihoods and local economies”