If a general insurance company authorised in this State was to become insolvent, it would be possible for a liquidator to be appointed under Irish law and, with the approval of the High Court, for moneys to be paid to the liquidator out of the insurance compensation fund for any sum due to a person in respect of a risk situated in the State.
The issue of policyholder protection for consumers in the EU has been raised by Ireland at EU level, with proposals that the cross-border consequences of insurance failures should be regulated. It is intended that the existing Irish arrangements for policyholder protection will be kept under review in light of progress on regulation at EU level.