Information on the Insurance Compensation Fund

NOTICE - Pursuant to Section 6 of the Insurance Act, 1964

Central Bank of Ireland (“Central Bank”) hereby gives notice for the purposes of section 6 of the Insurance Act 1964 (as amended) that, following the annual review of the state of the Insurance Compensation Fund (“the Fund”), the Central Bank is of the opinion that the financial state of the Fund is such that financial support need not continue to be provided for it.  The obligation on  each insurer and insurer authorised in another Member State to pay the appropriate contribution of 1% of the aggregate of the gross premiums paid to that insurer or insurer authorised in another Member State in respect of policies issued in respect of relevant risks in the State, will cease to apply on 1 January 2027, the effective date for the purposes of this notice.  

The 1% appropriate contribution, which has applied since 1 January 2026, continues to apply to any gross premiums paid to that insurer or insurer authorised in another Member State in respect of premiums received in respect of relevant risks in the State prior to 1 January 2027.

Although this is an industry contribution, the Central Bank is aware some firms explicitly pass the charge to policyholders.  If your firm is passing this charge to policyholders and listing it as a separate charge to be borne by the policyholder in the policyholder documentation issued, then the reduction in the levy should be passed to the policyholder. Policyholder documentation should also be updated as necessary to reflect the fact the levy is 0%, or ceases to apply, from 1 January 2027. Firms should not collect levies from policyholders from 1 January 2027.

Pursuant to section 6(13)(a) of the Act, the Minister for Finance has, by order dated 7 October 2011, appointed the Revenue Commissioners as the collector. Insurers or insurers authorised in another Member State shall:

1. File an electronic statement via Revenue ROS platform showing the aggregate gross premiums paid in that quarter by the holders of policies that the insurer or insurer authorised in another Member State issued in respect of risks in the State; and
2. Pay to the collector the appropriate contribution calculated within the timeframe specified in section 125(2) of the Stamp Duties Consolidation Act 1999.

Until the effective date, 1 January 2027, on which the obligation to pay the appropriate contribution shall cease.

For information provided by the Revenue Commissioners in relation to the Insurance Compensation Fund, please see the Revenue Commissioners website:

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