Michael McGrath (Cork South Central, Fianna Fail)
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72. To ask the Minister for Finance the current estimate by the joint administrators of the losses at a company (details supplied); the role of the insurance compensation fund in dealing with this issue; the amount that has been collected to date from the 2% insurance levy introduced since 1 January 2012; the timeframe the levy is likely to have to remain in place; and if he will make a statement on the matter. [42256/15]

Michael Noonan (Limerick City, Fine Gael)
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I have been advised by the administrators of the company in question that the current estimated total cost to the Insurance Compensation Fund (ICF) is between €1.1 billion and €1.15 billion. 

The establishment of the Insurance Compensation Fund is provided for by the Insurance Act 1964.  It applies to home, motor and commercial insurance.  The purpose of the ICF is to protect policy holders in the event of their insurer becoming insolvent. In this particular case, the ICF is being used in accordance with the legislation to allow the administrators of the company to meet their financial obligations as they arise. The management and administration of the ICF is under the control of the President of the High Court acting through the Office of the Accountant of the Courts of Justice. 

The Central Bank of Ireland has responsibility under Section 6 of the Insurance Act 1964, as amended, to carry out an annual assessment of the ICF to see if it needs financial support.  Where the Central Bank is of the view that the state of the ICF is such that financial support should be provided for it, it is allowed to determine an appropriate contribution to be paid to the ICF by each insurer. This is calculated as a percentage determined by the Central Bank, not exceeding 2 per cent of the aggregate of the gross premiums paid to the insurer or insurer authorised in another Member State in respect of policies issued in respect of risks in Ireland. If the Central Bank envisages a deficit may exist in the fund at any time in the calendar year after the contributions received from each insurer, it may recommend to myself as Minister for Finance to advance funds to the ICF from the central fund. This advance would be a loan and must be repaid to the Exchequer.  

The ICF levy currently in place of 2 per cent has applied since 1 January 2012.  I am advised by the Accountant of the Courts of Justice, that since that date and up until the end of October 2015, a total of €236,469,891.21 has been collected from the levy.  

At present, the balance owed to the Exchequer by the ICF is €912.3m. Since approximately €65m is collected each year under the 2% levy, it will take several years for the ICF to collect and repay the amount owed.