Alan Dillon (Mayo, Fine Gael)
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65. To ask the Minister for Finance the amount raised by the various levies and contributions on insurance premiums for each year since their introduction; if he is reviewing the operation of the levies associated with the insurance compensation fund, ICF; and if he will make a statement on the matter. [11341/23]

Alan Dillon (Mayo, Fine Gael)
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The insurance compensation fund, ICF, was established in 1984 to facilitate payments to insurance policyholders with regard to risks in the State when a non-life insurance company goes into liquidation. This fund is financed by a levy set at 2%. This is imposed on premiums paid by policyholders to insurers. Is the insurance compensation fund adequately funded? Is it transparent and effective in protecting policyholders in the event of an insurer's insolvency?

Jennifer Carroll MacNeill (Dún Laoghaire, Fine Gael)
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I thank Deputy Dillon for the question. It is important to note there are various levies and contributions in existence on insurance premiums. These serve different and quite defined purposes. The 2% insurance compensation fund levy represents the only pure levy charged on insurance premiums. It covers the cost of claims in the State where an insurer goes into liquidation. The ICF was established under the Insurance Act 1964. To recoup the Exchequer funds advanced following the administration of Quinn Insurance, the 2% levy on all non-life insurance premiums was reintroduced in 2012. Revenue collects this, transmitting these funds to the Central Bank of Ireland, which administers the ICF under the Insurance (Amendment) Act 2018. The Revenue Commissioners have informed me that recent annual industry contributions were €93 million in 2021, €101 million in 2020 and €130 million in 2019.

In terms of reviewing the rate, the Central Bank carries out an annual assessment of the ICF's financial position, which is issued to the Minister for Finance. The most recent Central Bank audited figures to the end of 2021 indicated that the balance on the loan was €550 million. While this has decreased in the interim, owing to the outstanding amount, the levy is likely to be applied for the next number of years.

Additionally, the motor insurers insolvency compensation fund, MIICF, is a contribution equivalent to 2% of gross motor premiums, established under the Insurance (Amendment) Act 2018. This ensures compensation levels payable from the ICF for third party motor insurance claims as a result of an insolvency are aligned with that where a motorist collides with an unidentified or uninsured driver. The MIICF is not considered a levy as discretion rests with the insurance companies as to its financing. Under the legislation, the rate will fall to 1% when the fund reaches €150 million and then 0% once the fund reaches €200 million. The fund balance at 31 December 2021 was approximately €110 million.

Alan Dillon (Mayo, Fine Gael)
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I thank the Minister of State for her response. The importance of the insurance compensation fund lies in its ability to provide a safety net for customers, particularly in the event of unexpected and unforeseeable circumstances such as an insurer's insolvency. In the past we have seen how the ICF has been activated to provide compensation for policyholders of insurers that became insolvent in Ireland. There was Setanta Insurance, a Maltese insurance company and Enterprise Insurance which was from Gibraltar. As the Minister of State referenced, there was also Quinn Insurance. It is important for customers to consider carefully the financial strength and stability of an insurer before purchasing any insurance policy. It is important to stress this.

The outstanding loan referenced is €550 million. The interest being paid on that loan has accrued to approximately €208 million. How long will the 2% levy on insurance companies be passed on to customers? Does the Minister of State expect any reduction in the levy in the near future?

Jennifer Carroll MacNeill (Dún Laoghaire, Fine Gael)
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I thank Deputy Dillon. I would like to clarify and come back to him in writing on some of the points he has raised. I hope that is okay. I will go back to some of the figures. Once the MIICF reaches €200 million the levy will be 0%. I would like to clarify this with the Department and come back to Deputy Dillon directly. It is important to set out to the House what is there at present. The Motor Insurance Bureau of Ireland's annual reports of the MIICF state that recent contributions were €38 million in 2021, €38 million in 2020 and €41 million in 2019. As the MIICF nears the thresholds the contribution will be considered in line with the legislation.

Separately, there is a 1% stamp duty charged on life insurance premiums and a 3% per cent stamp duty charged on certain non-life premiums. While occasionally described as levies, these duties are recorded to the Exchequer as tax receipts. I will check Deputy Dillon's questions more specifically and come back to him directly.

Colm Burke (Cork North Central, Fine Gael)
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At a recent meeting of the Committee of Public Accounts it was revealed that the Supreme Court ordered that €30 million be made available as security costs to the administrator of the Quinn Insurance company in order to proceed with a case against PricewaterhouseCoopers. My understanding is that the case was settled. Neither the Central Bank nor the Department of Finance would reveal the terms of the settlement agreement to the Committee of Public Accounts. I ask that the details of the settlement be available to the public. It was taxpayers' money that was gambled and they are entitled to find out what that final settlement was with PricewaterhouseCoopers, why the case was settled and the amount for which it was settled.

Jennifer Carroll MacNeill (Dún Laoghaire, Fine Gael)
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I thank Deputy Burke. As he knows from his own legal experience, the terms of a settlement may include a confidentiality element. I appreciate Deputy Burke's position as a member of the Committee of Public Accounts as I was a former member with him. I would like to reflect on this with the Department of Finance to see whether or how such information could be shared, having regard to the terms of the settlement.