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ARTICLE · 05 NOVEMBER 2026

Irish Insurance Levy Reduced To 0%

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The Central Bank of Ireland has announced a significant reduction in the Insurance Compensation Fund Levy from 1% to 0%, effective January 1, 2027, marking the lowest rate since the levy's reintroduction in 2012. This development follows the full repayment of the Exchequer loan advanced after Quinn Insurance's administration in 2011 and reflects the improved financial position of the Insurance Compensation Fund. Insurers must now review their policy documentation and processes to ensure compliance with the

IrelandInsurance
Eoin Caulfield
Eoin Caulfield
Ian Murray
Ian Murray
Niall Campbell
Niall Campbell
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On 29 September 2026, the Central Bank of Ireland (the Central Bank) announced a reduction in the Insurance Compensation Fund Levy (the ICF Levy) from 1% to 0% which will take effect from 1 January 2027.

The Insurance Compensation Fund was established under the Insurance Act 1964 to facilitate payments to eligible non-life policyholders where their insurer enters liquidation (or administration in certain circumstances). The ICF Levy is funded by non-life insurers based on gross premiums received for risks falling within the scope of the ICF, including home and motor insurance (as applicable). The Central Bank reviews the financial position of the Fund annually and determines the appropriate contribution payable by non-life insurers.

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