On 29 September 2026, Tánaiste Simon Harris and Minister of State Robert Troy welcomed the decision by the Insurance Compensation Fund (ICF) to reduce the levy on insurance policies from 1% to 0%, effective immediately. The levy, which is collected by insurers on behalf of the Fund, was originally introduced to build reserves for potential compensation claims arising from the failure of authorized insurance undertakings. The reduction reflects the Fund’s strong financial position, with sufficient reserves to meet current and projected liabilities without the need for ongoing levy income. The move is expected to provide modest cost relief to both insurers and policyholders across motor, home, and commercial insurance lines. The Ministers noted that the decision aligns with the government’s broader commitment to reducing costs for consumers and businesses where prudent, while ensuring the Fund remains adequately capitalized to protect policyholders in the event of an insurer insolvency. The ICF will continue to monitor its reserve levels and may reinstate the levy if circumstances change.
Key Takeaways
- Levy Eliminated: The Insurance Compensation Fund levy has been reduced from 1% to 0% effective immediately, removing a cost component from insurance premiums for consumers and businesses.
- Strong Fund Reserves: The decision reflects the Fund’s robust financial health, with reserves deemed sufficient to cover potential compensation claims without ongoing levy collections.
- Consumer Benefit: The reduction is expected to translate into modest premium savings for policyholders across motor, home, and commercial insurance, supporting the government’s cost-of-living agenda.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement