Irish hauliers could benefit from a reduction in  insurance charges next year, following the Central Bank of Ireland’s decision to set the Insurance Compensation Fund levy at zero from 1 January 2027.

The levy currently stands at 1%. Its removal affects eligible non-life insurance policies, including motor insurance, although operators should confirm the position on their particular fleet cover with their broker or insurer.

For transport businesses, the immediate question is how much of a difference the change will make to the final bill.

As an illustration, where the 1% levy applies to a premium of €50,000, the charge amounts to €500. On a premium of €100,000, it amounts to €1,000. These examples assume the underlying premium remains unchanged and the full amount is subject to the levy.

However, removing the charge does not guarantee that a fleet’s total renewal price will fall. An increase in the underlying premium could outweigh the saving.

Hauliers comparing quotations should therefore look beyond the headline total. A clear breakdown of the premium, levies, fees and any instalment costs will help establish whether the reduction has been reflected in the price.

The Central Bank expects insurers that explicitly charge the levy separately to reflect its removal from January. This also covers existing policies with instalments continuing into 2027 where the levy is explicitly identified.

That makes the announcement relevant to operators already paying for cover, as well as those approaching renewal. Businesses should ask whether their payment schedule will change and request an explanation of any remaining charges.

The fund supports eligible policyholders when an insurer fails. The decision follows repayment of its outstanding Exchequer loan, and the Central Bank will continue reviewing whether a levy is required in future.

For Irish hauliers, the change offers a modest potential saving. The test will come when renewal quotations and revised instalment statements arrive: operators should be able to identify exactly where that saving appears.