Central Bank of Ireland sets Insurance Compensation Fund Levy to 0%

Central Bank of Ireland has today (29 September 2026) announced a reduction in the Insurance Compensation Fund Levy to 0%, which will take effect from 1 January 2027. It is the first time the levy has been set at 0% since it came into effect in 2012. This marks the second change in the levy in two years, following the reduction from 2% to 1% in January 2026. The change will affect many customers with non-life insurance policies such as home and motor insurance (if the motor insurance firm is regulated by the Central Bank of Ireland). The fund is collected by the Revenue Commissioners and used to pay compensation to consumers for claims on failed insurance firms. Deputy Governor Mary-Elizabeth McMunn said: “The Insurance Compensation Fund protects eligible policy holders in the event of their insurer going into liquidation. The changes announced today reflect the financial position of the fund and follows the full repayment of the outstanding loan balance to the Exchequer. The reduction of the levy will positively impact a large cohort of policyholders in Ireland. The Central Bank will continue to conduct annual reviews of the fund and, should circumstances change, the levy may c...