EC investigation into flooding insurance schemes gets go-ahead
Flood victims throughout the south of Ireland especially have been hit with massive hikes in their premiums, MEP Seán Kelly told the European Parliament, and asked what the EU could do about it.
“The insurance market has failed the small businesses and households of Cork city, Clonmel, Skibbereen and Bandon and many other areas afflicted by the recent crisis.
“It’s not acceptable insurance costs rise six-fold overnight and that people must live in constant fear of losing their livelihoods. We need a new approach to the problem if the insurance industry is not able to provide adequate cover,” he said.
The industry is also under pressure in Britain as a result of massive flooding over the past few years and the violent floods caused by the storm last month which claimed the lives of more than 50 people in France and the island of Madeira.
“Because of the increase in natural disasters, the insurance industry is not equipped to deal with the fallout,” said Mr Kelly. But local authorities must also take action,” he added.
Many properties, Mr Kelly said, were flooded because the relevant authorities allowed development take place on flood plains and without the proper infrastructure being in place.
“There must be an end to bad planning, the EU Floods Directive must be fully implemented immediately and local authorities must look to the future and ensure new developments are able to cope with the effects of climate-change,” he told the parliament.
Insurance companies too must begin to operate across national borders with companies providing cover EU-wide and allow people to benefit from more competition and lower premiums, he added.
Internal Market Commissioner Michel Barnier said the investigation would include everybody with an interest in the insurance industry and the results would be debated at a special conference next year.
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