Billy Kelleher (Cork North Central, Fianna Fail)
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Question 107: To ask the Minister for Finance if a levy will be imposed on health insurance policies from 1 September 2011 as part of the proposed new insurance levy to increase the moneys contained within the insurance compensation fund to meet the solvency requirements required under the agreed terms of the sale of Quinn Insurance to its new owners; if he will clarify that in the event that the proposed levy is applied to health insurance policies that this levy will be applied to both regulated and non-regulated insurance entities; and if he will make a statement on the matter. [15490/11]

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, the Joint Administrators of Quinn Insurance Ltd (QIL) recently indicated that there was likely to be a call of about €600m on the Insurance Compensation Fund as a result of the solvency deficit in that company. Currently, there is €30m in the fund with a further €10m expected to be paid into it shortly on completion of the PMPA administration. Consequently, this means that there is a significant shortfall in the fund which will have to be addressed through the application of a levy by the Central Bank under Section 6 of the 1964 Insurance Act.

The Deputy should note that I am aware of the particular difficulties around the application of the levy to the health insurance sector because of the fact that a significant portion of this market is held by a company which is not regulated by the Central Bank. I am currently reflecting on this matter and a number of other levy related issues and will make a decision on these matters shortly.