Financial Resolution No. 10 provides for an increase in the current 2% non-life levy by 1% to 3% and by a new 1% levy on life assurance policies. The non-life insurance levy, which has been in place for many years, does not apply to voluntary health insurance, reinsurance, marine, aviation and transport insurance, export credit insurance and certain dental contracts. The increase in the levy is unlikely to deter people from taking out insurance because it is a relatively small part of the cost of insurance. People are legally required to have certain types of insurance, for example, drivers are required to have motor insurance and mortgage lenders usually require borrowers to take out home insurance. It is important for people to take out home insurance and business property insurance to cover future unforeseen events. The increase in the non-life levy will apply to premiums received on or after 1 June 2009 in respect of offers of insurance or notice of renewal of insurance issued by an insurer on or after 8 April 2009. The new life levy will also apply to premiums received on or after 1 June 2009 in respect of life insurance policies. The new levy will be a very small part of the cost of life assurance, the purpose of which is to provide for expenses of future events. The yield from measure in respect of the non-life levy is estimated at €40 million in a full year and €27 million in 2009, while the yield from the life levy is estimated at €114 million in a full year and €83 million in 2009.

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