The Central Bank of Ireland will reduce the Insurance Compensation Fund levy from 1% to 0% from Jan. 1, 2027, following full repayment of the fund’s outstanding loan balance to the Exchequer. This will be the first zero rate since the levy took effect in 2012 and follows its reduction from 2% to 1% in January 2026. The change is expected to reduce annual collections by about EUR 60 million across the non-life insurance sector, affecting policyholders including home and eligible motor insurance customers. Firms must be ready to implement the change from Jan. 1, 2027. Where the levy is shown as a separate charge in policy documentation, insurers should remove it from that date, including from existing policies paid in installments into 2027. The Central Bank will continue to review the fund annually and may adjust the levy if circumstances change.
Source: 2026-09-29Central Bank of Ireland
Central Bank of Ireland cuts Insurance Compensation Fund levy to 0% from January 2027
The Central Bank of Ireland will cut the Insurance Compensation Fund levy from 1% to 0% from Jan. 1, 2027, after the fund repaid its outstanding Exchequer loan. The change will reduce sectorwide collections by about EUR 60 million, and firms must remove separately stated levy charges from policies and installments applying from that date.