Quinn move could lead to 3% non-life premium tax

A GENERAL hike in insurance premiums and as much as a 3% tax on all non-life premiums could be the cost consumers have to pay for the state’s second largest insurance provider going into administration.

Although the dust has yet to settle from the High Court’s move to appoint administrators to Quinn Insurance the fall-out has effectively begun.

In attaining their target of placing Quinn Insurance “on a sound financial and commercial footing”, the administrators (Paul McCann and Michael McAteer of Grant Thornton) could, conceivably, apply to put a levy in place if needed to counteract losses at the company. Industry representatives have also warned that insurance premiums will also rise. Across-the-industry premium levies were imposed to soak up losses from the collapse of PMPA and the Insurance Corporation of Ireland in the early-to-mid 1980s.