Hibernian adopts software to identify flooding risks

New software will allow the Republic's largest general insurance company, Hibernian, to identify which properties are vulnerable to flooding, storms and theft on a street by street basis.

Hibernian, which insures one in five Irish homes, has signed a contract for an undisclosed sum with location software firm Mapflow that allows it to work out which homes are most likely to give rise to claims.

Up to now, the insurer has used county or postcode-based ratings in its decisions. It can now identify if a particular building is as vulnerable as another building down the road. The software could allow it to formally identify insurance "black spots" where the threat of flooding is so high that homeowners will be charged a loading on their premiums, forced to pay a higher excess in the event of a claim or, in extreme cases, declined flood cover.

But a spokeswoman for Hibernian said by enabling its underwriters to assess risks more precisely, the location technology would allow it to price its home insurance policies in a fairer manner and offer better rates.

"Our experience to date is that it allows us to respond to remedial flood defence measures like those carried out by the Office of Public Works in Drumcondra and pass on the benefits to policyholders immediately," she said.

Richard Bryce, chief executive, Mapflow, said using more sophisticated software was a natural evolution for insurers and that it would not lead to clusters of houses being declined cover.

"The experience in the UK has been that software helps insurers offer more protection. If insurers don't have the information, like all of us, their inclination is to be more cautious," he said.

Hibernian's adoption of the system comes days after the Minister of State at the Department of Finance, Tom Parlon, launched the Office of Public Works (OPW) website floodmaps.ie, which highlights flood risk areas.

The website includes detailed maps and historical information dating back more than 100 years. The flood hazard maps have been designed to assist planners, but can also be used by homeowners to assess if there is a threat to their properties.

The Irish Insurance Federation (IIF) has welcomed the publication of the maps, but called on the Government to increase the funding it provides to the OPW.

Michael Horan, the IIF's general insurance manager, said the OPW had been allocated a budget of just €20 million a year for its flood defence scheme, which he said equated to about 5 per cent of the funding needed to complete all of the flood defence projects it had identified.

Four major floods between 2000 and 2004 resulted in total claims of €176 million and put pressure on premiums, although these are now falling.

"Historically, insurers have been able to offer home insurance at affordable premiums. Obviously we want to be able to continue to do that, but the Government needs to do its part," he said.