Ireland's Department of Finance published a release in which Minister of State Robert Troy welcomed the Central Bank of Ireland’s decision to reduce the Insurance Compensation Fund (ICF) levy from 2% to 1% and urged insurers to pass the full reduction through to customers. The lower levy rate will take effect from 1 January 2026. The ICF is intended to protect policyholders in the event of insurer insolvency. The Exchequer has advanced around EUR 1bn to the fund since 2011 following the administration of Quinn Insurance Limited, and the levy was reintroduced at 2% to repay this loan; the outstanding balance was over EUR 270m at end-2023. Data collection to determine the exact amount of consumer savings from the levy reduction is underway through the National Claims Information Database.
Department of Finance (Ireland) 2025-10-03
Ireland's Department of Finance calls on insurers to pass on Insurance Compensation Fund levy cut to 1% from 2026
Ireland's Department of Finance announced the Central Bank of Ireland's decision to reduce the Insurance Compensation Fund levy from 2% to 1%, effective 1 January 2026. Minister of State Robert Troy urged insurers to pass the reduction to customers. The levy, initially reintroduced to repay a EUR 1bn Exchequer advance, has an outstanding balance of over EUR 270m as of end-2023.