Central Bank to reduce Insurance Compensation Fund Levy

Central Bank to reduce Insurance Compensation Fund Levy

The Central Bank said it will reduce the Insurance Compensation Fund levy from 2% to 1% from January 1, 2026 - marking the first change in the levy in 14 years.

Central Bank cuts Insurance Compensation Fund levy for first time in 14 years

The Central Bank of Ireland has announced that the Insurance Compensation Fund Levy will be reduced to 1% from 1 January 2026, marking the first change in the rate since 2012. The levy, which applies to many non-life insurance policies such as home and motor insurance, had been set at the maximum 2% allowable under the Insurance Act 1964. Collected by the Revenue Commissioners, the fund provides compensation to consumers where an insurer has fai…