The Government has told the insurance industry it must handle a “surge” in claims following Storm Éowyn quickly and fairly, as political fallout from the aftermath beckons.
Minister for Finance Paschal Donohoe wrote to industry body Insurance Ireland last week, with Cabinet ministers told he clearly indicated that it would need to be responsive and fair in its dealings with policyholders.
With 32,000 customers still without electricity on Monday – 11 days after the storm hit – Government sources expect the final connections to be slow and arduous.
It is expected that some people will be without power until the end of the week.
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Repair crews, who have been working since the day of the storm, are now tackling damage that will restore fewer customers, meaning the expectation is the number of people getting power back will fall by the day. One senior Coalition source said the expectation was for “diminishing returns” from repairs in the days ahead.
[ Storm Éowyn cost likely to be in hundreds of millions as insurers survey damageOpens in new window ]
The Dáil is expected to hear statements on the State’s response to the storm this week.
Meanwhile, Coalition figures said the dramatic impact of the storm means there is pressure to build greater resilience into Ireland’s networks after significant issues in its wake. Government sources are particularly unsettled by the failure of some water supplies.
The State is likely to purchase new backup generators, write new protocols for local authorities and make communications systems more robust after failures in networks.
A spokeswoman for Mr Donohoe said: “The communication noted that the insurance industry was set to commence its assessment of the relevant claims following the storm and it was the Minister’s expectation that members treat policyholders fairly and expediently in the context of any such claims.”
Moyagh Murdock, chief executive of Insurance Ireland, said companies were dealing with thousands of claims “promptly and efficiently” and had mobilised additional staff in light of the storm. “We note the Minister’s expectation ... and would reiterate that this aligns with the intent of the insurers.”
There have in the past been tensions over insurance payouts in the wake of major events such as floods or the Covid-19 pandemic, with policyholders and advocacy groups complaining over the pace of payments.
[ Storm insurance: How long to settle my claim? And will my premiums go up?Opens in new window ]
Claims will be handled “as expeditiously as possible” as companies compile information on the scale of the damage caused by “unprecedented winds”, Ms Murdock said.
“Insurers and their claim handlers anticipated a surge in policyholder claims in both auto and property and have put in additional resources in the claims teams to deal with the increase in volume of claims.”
It is expected to take a number of weeks to estimate the insured cost of Storm Éowyn to become clear. Insurance Ireland said its members were managing the increased customer service volumes well. Previous storms and floods have cost tens of millions in insurance claims.
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