It is claimed the 2% government levy on insurance policies may need to rise to pay for the collapse of Quinn Insurance.

A Central Bank official told the High Court today that it is hoped the €1.6 billion 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.

And this may lead to an increase in the levy stamped onto insurance policies.

Newstalk’s Business Editor Ian Guider says one thing is for sure – we will be paying for this for a very long time.

He spoke with Lunchtime here on Newstalk.