Insurers paid €157m in winter storm claims

The winter storms that occurred in the first two months of last year cost the Irish insurance industry €157m, an Oireachtas committee heard yesterday.

Thu, 16 Apr, 2015 - 01:00

Dan Buckley

Claims, however, arising from extreme weather conditions since 2000 had amounted to €1.45bn, the joint committee on finance, public expenditure, and reform was told.

The winter storms of December 2013-February 2014 resulted in just over 30,000 claims, Kevin Thompson, CEO of Insurance Ireland, told the committee.

“We have experienced 14 major weather events since 2000. There were just over 30,000 claims arising from these storms with approximately 70% by number and cost resulting from the storms in February 2014.”

Mr Thompson said capital expenditure by Government on flood risk management over the years 2001-2014 averaged €28m yearly but was far short of what was needed.

“Adequate investment in flood defences is vital,” he said.

The committee also heard from Lawrence Owens, chief executive of Cork Business Association who pointed out the city was prone to flooding. He said the OPW’s Cork City Flood Relief Scheme aims to strengthen the city’s flood defences.

While recognising that the projected cost of up to €60m represents a significant investment, Mr Owens added: “we can take confidence from the effectiveness of the recent flood defence works in Fermoy, Clonmel, and Waterford.”

Mr Owens said the expectation among business owners in Cork was once the OPW flood relief scheme was completed, realistic flood insurance cover will follow.

“However, the commentary from the representative body for insurance companies [Insurance Ireland] is somewhat different. In its opinion, based on the plans it has seen for the Cork flood relief scheme, the proposed works will not reduce the risk of flooding sufficiently to allow them provide flood cover to business and households in Cork City. Consequently the ongoing difficulties business and property owners in Cork city face in respect of the lack of flood insurance is set to continue.”