The Insurance (Amendment) Bill 2011 which amends the Insurance Act 1964 is expected to be passed by the Oireachtas this week. This significant piece of legislation amends the scope of the Insurance Compensation Fund in a number of ways. Key changes include the following:
- all insurers covering Irish situate risk may be required to contribute up to 2% of the relevant premiums to the Fund (certain Irish premium income is excluded e.g reinsurance, life insurance, health insurance);
- access to the Fund for insurers in administration (subject to a carve out for insurers currently in administration) will be limited to Irish authorised insurers whose business is at least 70% in respect of domestic risks in the three preceding years);
- drafting errors have been corrected to restore access to the Fund for insurers in liquidation.
The Insurance Team are monitoring the progress of this legislation with interest and a commentary on the Bill will be circulated in due course when it has been passed by the Oireachtas.