Insurance Ireland calls for Strategy to Revitalise Ireland as a home for (Re)insurers

Thursday, October 17th 2024 – Insurance Ireland today launched a paper entitled Revitalising Ireland as a home for (Re)insurers, at the European Insurance Forum (EIF) at Dublin Castle.

The Irish (re)insurance industry is a vibrant one, employing more than 35,000 people and contributing more than 2.7 bn Euros to the Exchequer annually, however, it is not without its challenges. In 2023, the Irish market grew by only 1.1% compared to 3.6% growth across the European Economic Area. Notably, these results do not reflect the relocation of major insurance groups from Ireland which will negatively impact growth statistics in 2024.

In this context, Insurance Ireland has called on the Government to build on the work of the Office to Promote Competition in the Insurance Market by leading a strategy to revitalise Ireland’s offering as a destination of choice for (re)insurers. To facilitate the discussion, Insurance Ireland has suggest five key actions.

1. Create and promote a one-stop-shop for Foreign Direct Investment (FDI) and increased investment by undertakings already located here, including the Government, IDA Ireland, the Office to Promote Competition, the Central Bank of Ireland and industry.

2. Address the talent crisis effectively through a mix of short, medium, and long-term actions. One suggested action is a comprehensive scheme for the fair taxation of cross-border teleworkers and extended working from abroad, as well as a reflection on cross-border corporate taxation.

3. Focus on attracting investments in unregulated services, building on the ongoing work under the IFS2025 Strategy to support innovation in the financial services sector and promote diversity and talent. This action also has scope to support regionalisation and decentralisation within the industry.

4. Strengthen Ireland as the EU’s gateway to the world by including (re)insurance in Free Trade Agreements (FTAs) and complementary supervisory Memoranda of Understanding. This follows the great success of the inclusion of aircraft leasing in FTAs.

5. Enhance regulatory efficiency by increasing predictability transparency and accountability. The national transposition and implementation of Solvency II, the common EU prudential supervisory regime, and the new EU-wide recovery and resolution regime are outstanding opportunities to address any inconsistencies and divergence. Insurance Ireland appreciates the steps already undertaken by the Central Bank of Ireland to enhance the processes surrounding material changes of business plans and the updated guidance on authorisations and approvals.

Moyagh Murdock, CEO of Insurance Ireland, said: “These five actions would send a strong signal to (re)insurers around the globe that Ireland is a market for investments and growth, enhancing the Irish economy in a long-term and sustainable way.\”

Insurance Ireland believes that in taking the collaborative actions outlined above, stakeholders will be best placed to renew Ireland’s competitive offering, ensuring that our (re)insurance industry is well-positioned to play an even stronger role in the economy and society.

Read the full paper here: Revitalising Ireland as a home for (Re)insurers