Minister Troy calls on insurance companies to pass on levy reduction to customers
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From: Department of Finance
- Published on: 3 October 2025
- Last updated on: 3 October 2025
Minister of State with responsibility for Financial Services, Credit Unions, and Insurance, Robert Troy TD, today welcomed the Central Bank of Ireland’s decision to reduce the Insurance Compensation Fund (ICF) levy from 2% to 1%. This reduction will become effective from 1 January 2026, and Minister of State Troy called on insurance companies to ensure this reduction is passed on in full to customers.
The ICF was established to protect policyholders in the event of insurer insolvency. Since 2011, the Exchequer has advanced approximately €1 billion to the Fund following the administration of Quinn Insurance Limited. The levy was reintroduced at 2% to repay this loan, with the outstanding balance standing at over €270 million at the end of 2023.
Welcoming the Central Bank’s announcement, Minister Troy said:
"The reduction in the Insurance Compensation Fund levy is good news for the insurance sector and for policyholders. It reflects the significant progress made in restoring stability to the wider market. It is now essential that insurers pass on this reduction to their customers. Trust and transparency is paramount for the sector, and it is vital that insurers act responsibly."
Gathering the necessary data to determine the exact amount of savings for consumers is underway through the National Claims Information Database.
ENDS