Better Approach to Flood Risks Urged As Insurance Companies Face Huge Payouts

Chief Executive of the Irish Insurance Federation,commercial property owners following damage
Martin Kemp, has called for a concerted nationalsustained from burst pipes during the big freeze in
approach to help to address flood risk issues such asJanuary. This is on top of nearly €750,000 already
planning and development improvements, investment inclaimed in the county for damage suffered from
flood defense and the effective management offlooding during November.
watercourses and drainage.The freezing conditions in January lead to many
His comments come in the wake of figures publishedbusinesses and homes suffering burst pipes throughout
by the Irish Insurance Federation (IIF) that showed inCounty Wexford, resulting in flood damages in many
Ireland the extreme weather events that occurred incases.
November 2009 and January 2010 had resulted inThe public water supply for Wexford County Council
property insurance claims totaling €541 million. Thiswas extremely short for a period, with rationing
figure is more than the combined total costs for allintroduced. The number of household insurance claims
previous weather events during the past decade ofmade in the county during January was 514, with
€358 million.commercial claims standing at 105.
Mr. Kemp said that the insured cost of the two severeEstimations are that the overall pay out for household
weather events was 'very stark' and implications fordamage could reach €4,032,000, with the cost of
the Irish insurance sector may be felt, but he wascommercial property damage standing at €1,482,000.
confident in the resilience of insurance companies toThis made for a combined total for the month of
meet the needs of their customers during a 'very€5,514,000.
traumatic time for many people'.Although November's flooding did not affect County
He said that consequences for the future in relation toWexford as badly as many other areas on the West
weather-related claims might be unavoidable saying,coast of Ireland, household and commercial claims
"With the increasing frequency and severity ofhave still reached €754,000.
extreme weather conditions, questions inevitably ariseDuring the 9 November to 30 November, the number
as to the future cost and even insurability of someof claims for household flooding stood at 90, with 26
risks, particularly flood risk in some parts of theclaims for flooding damage to commercial properties.
country".According to the IIF the household total stood at
In County Wexford, insurance firms are set to pay out€444,000, while the commercial total was €10,000.
an incredible €5.5 million to homeowners and