Consumers to pay for Quinn loss

Irish consumers will have to pay a levy on their car and home insurance to foot a €620m bill from the collapse of Quinn Insurance, the Irish Independent reports.

A joint venture between Anglo Irish Bank and US insurer Liberty Mutual has bought the insurer but will not take on all its losses.

According to the paper, the Irish government will impose rate increases of between 1% and 2% on all non-life insurance customers in the country. The proceeds from the levy will be pooled in the Insurance Compensation Fund, which ensures all policyholders get paid if their insurer hits financial trouble.

The Irish Independent also reported that Quinn Insurance will soon publish its 2010 results, which are expected to show €120m of losses.