MIBI welcomes the Government’s decision in Budget 2027 to reduce the Insurance Compensation Fund (ICF) levy rate from 1% to 0%, reflecting the significant progress made in addressing historic compensation liabilities and reducing the burden on policyholders. As the administrator of the Motor Insurers Insolvency Compensation Fund (MIICF), MIBI plays a key role in ensuring that compensation mechanisms are available to protect consumers when insurers are unable to meet their obligations. This commitment to consumer protection extends beyond the administration of this compensation fund and is also reflected in MIBI’s role as Irish Motor Compensation Body (IMCB), Comhlacht na hÉireann um Chúiteamh Mótair, which has been established to support claimants affected by the insolvency of motor insurers operating across the European Union.
The past year has seen the achievement of significant milestones in implementing the requirements of the IMCB, with substantial progress made in establishing the operational, governance and technology frameworks required to support the new regime established under the Motor Insurance Insolvency Compensation Act 2024.
A major achievement was the successful implementation and go-live of the new IMCB functionality within MIBI’s Presto Claims Management System in February 2026. The enhanced platform introduced dedicated IMCB claim categories and end-to-end claims processes, enabling the efficient management of claims arising from the insolvency of motor insurers in the EU. Extensive User Acceptance Testing was carried out with both internal and external stakeholders to ensure the system was fit for purpose and aligned with legislative requirements.
Alongside the technology implementation, significant work has been undertaken to establish the governance arrangements supporting the IMCB. This has included the development of a Memorandum of Understanding with the Central Bank of Ireland, which will formalise operational processes, information-sharing arrangements and reimbursement procedures. Progress has also been made in defining engagement protocols with the State Claims Agency in relation to audit and oversight requirements.
Recognising the importance of consistent application of the new framework, MIBI has delivered a comprehensive stakeholder training programme for Handling Offices. The training covered governance requirements, new claims processes, financial controls, reimbursement arrangements and practical system operation. This collaborative approach has helped ensure that all stakeholders are equipped to administer IMCB claims effectively and consistently.
The establishment of the IMCB represents an important enhancement to consumer protection within the Irish motor insurance market. The framework ensures that claimants continue to have access to compensation mechanisms where a motor insurer becomes insolvent, reinforcing confidence in the motor insurance system and supporting Ireland’s obligations under European motor insurance legislation. These developments ensure that the IMCB is well positioned to operate effectively and deliver on its important consumer protection and public policy objectives.