Insurance levy cut to 0%; Central Bank expects firms to pass savings to customers

Change could see a slight reduction in premiums paid by customers with non-life insurance policies such as home and motor insurance

The Central Bank is responsible for assessing and administering the Insurance Compensation Fund which is used to pay compensation to consumers for claims on failed insurance firms. File photo: Leah Farrell/Rollingnews.ie

The Central Bank of Ireland has announced a reduction in the Insurance Compensation Fund levy from January 1 next year with the regulator saying the change will "positively impact a large cohort of policyholders in Ireland”.

The Insurance Compensation Fund is collected by the Revenue Commissioners and is used to pay compensation to consumers for claims on failed insurance firms. The Central Bank is responsible for assessing and administering the fund and monitors it throughout the year.