Insurers estimate that the total cost of claims following Storm Éowyn in January 2025 could be as much as €300 million with up to 25,000 claims. This makes it one of the most expensive weather events in Ireland this century.

The aftermath of Storm Éowyn serves as a sobering reminder of the escalating risks associated with climate change and its impact on homeowners and the insurance sector.

At the end of 2024, just before storm Éowyn struck, ten major insurers in Ireland met with the Minister for State for Insurance, Neale Richmond, to discuss whether Ireland should adopt a similar scheme to the UK Flood Re scheme. These meetings were in response to the increasing reluctance of the reinsurance market to cover flood. This lack of appetite has made many insurers nervous about offering flood cover to consumers as a result homeowners in vulnerable areas are finding it difficult to get flood cover and this impacts property values. The Central Bank has reported that 5% of property owners in Ireland could be refused flood insurance currently.

The Irish Times reports that some insurers who participated in the government consultation believed that an insurance levy like the UK Flood Re scheme (which provides a central fund for claims that insurers can draw from) could work in Ireland. Insurers also pointed out that this would only be a partial solution to growing flood claims and that a coordinated approach to land management was key.

The Irish Government has promised to dedicate €1.3 billion to flood defences between now and 2030 but insurers have said that reducing risk also depended on careful placement of new developments and proactive land management. Development on flood plains is an obvious risk to new homes and businesses but development high up in a water catchment area can have a serious impact on existing older properties at lower levels.

The National Catchment-based Flood Risk Assessment and Management (CFRAM) Programme is designed to map flood hazard and risk for vulnerable communities in Ireland. It is a valuable tool for insurers and planners. If development, land management and flood schemes are drawn up in tandem with CFRAM it should help prevent flood for some homeowners but without strong backing from the reinsurance market or a levy scheme, people will still struggle to obtain flood cover in certain parts of Ireland.