Insurance-fund levy to fall to 0%
The Central Bank has announced a cut in the Insurance Compensation Fund (ICF) levy to 0%, with effect from 1 January 2027.
The levy, which was set at 2% when originally introduced in 2012, had been reduced from 2% to 1% at the start of this year.
The ICF provides protection to certain Irish non-life, such as home or motor insurance, policyholders in the event of their insurer going into liquidation.
It is collected by Revenue and used to pay compensation to consumers for claims on failed insurance firms.
Annual reviews
Its purpose was mainly to repay the State for funding the administration of Quinn Insurance.
Central Bank deputy governor Mary-Elizabeth McMunn said that the changes announced today (29 September) reflected the financial position of the fund and followed the full repayment of the outstanding loan balance to the State.
“The Central Bank will continue to conduct annual reviews of the fund and, should circumstances change, the levy may change in the future,” she added.
The regulator said that it expected insurance firms to act in the best interests of consumers and to be ready to implement the change from 1 January 2027.