Ireland: New Motor Insurers’ Fund takes effect 1 December 2018
With a new motor insurance levy in Ireland, Marsh recommends that businesses carefully evaluate the potential impact on their cost of risk.
The Irish Government has passed the Insurance (Amendment) Act 2018, to take effect 1 December 2018. The law requires insurers operating in the Irish market to contribute 2% of gross written premiums towards a new fund to be known as the Motor Insurers’ Insolvency Compensation Fund.
The fund will be held by the Motor Insurers’ Bureau of Ireland and will increase the level of insurance compensation fund coverage for all future third-party motor claims from its current 65% level to 100%. The aim is to ensure that claimants can still be paid if an insurer goes into liquidation.