The 2% levy imposed on all insurance policies to cover the shortfall at Quinn Insurance could be reduced or even scrapped.
Administrators, Grant Thornton who were appointed to Quinn insurance are suing auditors, Price Waterhouse Coopers, for alleging negligence and breach of contract in a claim worth €1 billion.
Michael McAteer of accountancy firm Grant Thornton, told the High Court that any damages awarded against PwC, which audited Quinn’s accounts, will be used to repay a €1.1 billion bailout of Quinn by the industry’s Insurance Compensation Fund.
The State has imposed a 2% levy on all non-life policies to recoup the cost of the Quinn Insurance bailout.
The action is expected to be vigorously defended by PwC.