A new nationwide levy to pay for flood insurance is an attempt by companies to “exploit” people, Sinn Féin has argued. 

With flooding forecast to become more frequent and severe due to climate change, Insurance Ireland has called for a "sustainable flood insurance fund", which it argues would  plug "Ireland's flood insurance protection gap".

The levy would allow companies to insure homes that are currently unable to obtain insurance due to the high risk of flooding in their local area. 

Research by the Central Bank has previously estimated that 5% of households find it difficult to find flood cover. It means that many homeowners struggle to sell their properties. 

On The Claire Byrne Show, Mayo TD Rose Conway-Walsh said the proposal had "infuriated" her. 

“I see this as no more of an attempt to exploit the situation that people find themselves in because of consistent Government failure,” she argued. 

“People in my own constituency here in Mayo will be outraged to think that the answer to what they have had to experience is to put a premium of €24 per household on their insurance. 

“This is treating the symptoms, not the cause of what's happening.”

Rain in Clonakilty, Co Cork. Picture by: AG News/Alamy Live News.

The Sinn Féin TD continued that it is “not clear” if any of the money raised by the levy would be used for infrastructure that builds flood resilience. 

“There could be grants introduced through the local authorities with the other grants that are introduced to help that situation because people want to be protected in their homes,” she argued. 

“But this is not at all addressing the situation; this is to get more profit for the insurance companies.”

Deputy Conway-Walsh added that previous changes to insurance models had served only to increase the company profits.  

“I sat on the Finance Committee [of Mayo County Council] back 10 years ago and when they were saying, ‘Yes, we bring in different reforms’,” she recalled. 

“Then they're saying, ‘Yes, we will aim for a 5% margin on the profits if you bring in these reforms’.

“The reforms that were brought in and what we see are the margins for insurance companies are up to 17%, not the 5% that was promised. 

“So, there has been failure all the time by the insurance industry to do what they said that they would do.”

Torrential rain in West Cork. Picture by: AG News/Alamy Live News.

In the long-term, Deputy Conway-Walsh argued that the “only solution” to flooding is for State investment in infrastructure. 

“Look at here in Mayo, in the Crossmalina flood relief scheme, it took 15 years to start that,” she said. 

“Now it's only started, but it took 15 years to do that; you cannot have those kinds of delays in infrastructure.”

Main image: Flooding in Midleton, Cork. Picture by: PA Media.