Government-backed fund of last resort in line to pay for Quinn's solicitors' professional indemnity claims
The Irish Compensation Fund may have to pay out for solicitors’ PI claims for Quinn Insurance, Insurance Times understands.
The Irish Government is expected to push up rates by 1% or 2% on all non-life insurance arrangements in Ireland to pay for a shortfall from Quinn Insurance of around €620m.
The levy is likely to be imposed to boost the Irish Compensation Fund - a fund of last resort to pay for customer insurance claims - so it can meet Quinn's liablities.
Quinn’s administrators would have to apply to the Irish High Court to tap the fund.
Quinn underwrote a range of claims in the UK including solicitors professional indemnity (PI), motor and recycling.
It is not clear yet whether tapping the Irish Compensation Fund will delay the length of time it takes for a Quinn claim to be paid.
A spokesman for the Solicitors Regulation Authority said the claims would be met by Quinn, and if at any stage Quinn was unable to meet the claims, then the Irish Compensation Fund was liable.
Reports coming from Ireland suggest Liberty Mutual and Anglo Irish Bank, which have agreed a deal for Quinn, will not meet all its outstanding claims, instead expecting the Irish Compensation Fund to shoulder the burden as well.
