Call for cut in insurance premiums after reduction in levy on policies

"Tánaiste and Minister for Finance Simon Harris called on insurers to pass on the reduction to consumers. He said: "The Insurance Compensation Fund is an important protection mechanism for Irish policyholders. "It ensures that in the event of an insurer going into liquidation, outstanding claims can still be funded." Mr Harris said that since 2011, the Exchequer has advanced approximately €1bn to the Insurance Compensation Fund."

"'However, I am pleased that the balance of the advances from the Exchequer has reached a level where the levy can now be reduced from 2pc to 1pc. "This reduction will benefit approximately 2.3 million private motor insurance policies and 1.3 million home insurance policies on renewal in January 2026." He said the reduction in the annual percentage rate will reduce the level of motor insurance contributions by approximately €57m in the new year."

"The Insurance Compensation Fund levy is to go from 2pc to 1pc from the start of next January. It is known as the Quinn Levy as it was put in place to cover the losses incurred by the collapse of Seán Quinn's insurance empire, where appropriate cash reserves were not maintained. This marks the first change in the levy in 14 years, according to the Central Bank of Ireland, which administers the levy."

The Insurance Compensation Fund levy will be reduced from 2pc to 1pc from the start of next January. The levy, known as the Quinn Levy, was established to cover losses from the collapse of Seán Quinn's insurance operations and to ensure claims can be met when insurers fail. The Central Bank of Ireland administers the levy and reports this is the first change in 14 years. The reduction is estimated to lower sector collections by about €57m and reduce an average motor premium by roughly €6. The Exchequer advanced about €1bn since 2011; the improved balance permits the levy cut. Approximately 2.3 million motor and 1.3 million home policies will be affected at renewals in January 2026. The levy is collected by the Revenue Commissioners to pay compensation for claims on failed insurers.

Read at Irish Independent