The Ryan Review

AS the fallout from the meeting between Storm Emma and the Beast from the East continues, invariably it is the cost of insurance claims that will be focussed upon.

Many insurers —notably FBD, which posted sterling results recently — have seen an upturn in profits after a torrid decade but extreme weather events can cause a setback on home and public liability books. Flooding in particular can wreak havoc, as many commercial and domestic owners will be finding out at renewal.

Some won’t be re-quoted at all, others excluded for flood damage, and even more black-listed, unable to switch insurer for years. I live in an area which used to be prone to flooding (and experienced an extreme form some 18 years ago).

Flood alleviation works have meant we haven’t seen so much as a large puddle since, but that hasn’t ruled out some estates remaining uninsurable. This affects value and future sales.

The geo-mapping system used by insurers is imprecise and disordered but they’ll still use it to justify refusing cover to home-owners. So why has the Government not taken the lead from the UK and set up a flood reinsurer? ‘Flood Re’ is not for profit, owned and managed by the insurance industry, paid for with a £10.50 levy on policies and overseen by the UK government. It provides affordable cover to those otherwise unable to access it.

Michael Noonan, in 2016, said it would be too expensive here and wouldn’t work, but the Government will be shelling out millions anyway in aid and flood works in the months to follow to those who don’t have insurance. Why not simply pay for the insurance instead?