Debt estimates jump from €600m to €775m
The insurance levy created following the collapse of Irish insurer Quinn Insurance could be imposed for longer as debts for the insurer rise.
The cost of paying the insurer’s debt has risen by a further €37m with Quinn’s administrators admitting recently they expect to need €775m from the Insurance Compensation Fund (ICF) to deal with Quinn Insurance’s claims, reports the Irish Independent.
Original estimates placed the bill in the region of €600m. Further revisions sent the figure rocketing upwards of €770m.
The ICF fund is being paid from a 2% levy on all general insurance bills in the Republic of Ireland.
The Department of Finance has confirmed that the levy would stay fixed at this mark, meaning consumers may pay for the debts for a longer period of time.
The ICF fund is being used to fill the gap left by claims on Quinn Insurance and the assets the administrator still has control over.
Claims involved are largely UK business and commercial business that was not included in the takeover with Liberty Mutual and Anglo Irish Bank of Quinn in 2011.
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