Bank official says external factors may add to Quinn costs07/08/2012 - 13:29:57
A Central Bank official has told the High Court that it's hoped the €1.6bn estimate of what is required to cover the costs of Quinn Insurance is as bad as it gets.
However Domhnall Cullinan has warned it is possible external factors could make the situation worse, which would mean even more money would have to be drawn down from the Insurance Compensation Fund.
Motor and home policy insurance holders are already paying a 2% governement levy to pay for the collapse of Quinn Insurance.
But more may now be needed.
The High Court heard today from joint administrator Michael McAteer that since they took over the insurance business in 2010, actuary reports have time and again underestimated the reserves required to meet potential claims.
Last October the estimated figure was €738m but that's now more than doubled to €1.6bn.
The Central Bank oversees insurers and Cullinan told the court while he hoped this was as bad as it gets he couldn't rule out worse.
He said the rights of policy holders had to be protected.
The court heard an application to raise the cap on ICF funding will most likely be made early next year.
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