Ireland’s Central Bank has approved a further cut to the Insurance Compensation Fund (ICF) levy, bringing it down from the current 1% to 0% with effect from 1 January 2027, as confirmed by the Department of Finance on 29 September 2026. The move marks the final stage of a phased wind-down: the levy was held at 2% for more than a decade before falling to 1% on 1 January 2026. It has been made possible by the recovery of the Fund’s finances, after the State stepped in to support it following the 2011 collapse of Quinn Insurance.
By way of background, the ICF levy is charged only on non-life insurance covering risks situated in Ireland; excluded risks and captive insurers fall outside its scope.
The 0% rate applies to premiums received on or after 1 January 2027.
