Rising costs, insurance challenges, and the impact of climate change
Looking ahead, Ireland will face greater challenges as climate change intensifies. To mitigate this, we must strengthen both physical flood defences and financial resilience. Building robust flood protection and ensuring insurance accessibility will require coordinated efforts from all stakeholders involved in flood risk management.
Our colleagues at JBA Risk Management, in collaboration with Gamma and the Central Bank of Ireland, contributed detailed, high-resolution risk data that accounts for coastal, river, and surface water flooding to the recently published Flood Protection Gap Report.
The 'flood protection gap' refers to the disparity between the total economic cost of flood damage in Ireland and the portion covered by insurance. The report examines the present-day scenario and how this might change in the future, particularly in light of climate change.
The work analyses the accessibility of flood insurance and answers the question: if a home or commercial property seeks to have flood cover on their property insurance today, will it be available?
The report’s findings offer valuable insights:
- Currently, 1 in 20 buildings in Ireland struggle to access flood insurance.
- The average annual cost of inland flooding (river and surface water) is estimated at €101 million. In more severe events, losses could reach up to €510 million, an occurrence expected roughly once every 25 years.
- As climate change progresses, Ireland is likely to experience increased rainfall, leading to more frequent and severe flood events, further widening the flood protection gap.
Visit our What We Do page for more information on our work in Flood Risk, Resilience, and Water Management, or contact us, and one of the team will contact you.