Central Bank cuts insurance levy and expects firms to pass on savings to customers

The reduction will affect consumers with non-life insurance policies, including home and motor insurance but not health insurance

The Insurance Compensation Fund levy will fall from 2% to 1%. The fund is used to pay compensation to consumers for claims on failed insurance firms. File photo

The Central Bank of Ireland has announced a reduction in the Insurance Compensation Fund levy and is expecting that firms will “act in the best interests of consumers” and “reductions on eligible policies are passed on immediately”.

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 levy is being reduced from 2% to 1%.