OUTsurance Launches in Ireland, Set to Increase Competition in Insurance Market
OUTsurance, a South African insurer, has officially launched its operations in Ireland, becoming the first new locally authorized personal insurance underwriter in the country in more than a decade. The company aims to bring fresh competition to the Irish motor and home insurance market, with plans to invest €160 million and expand its workforce from the current 70 employees to 300 over the next three years.
OUTsurance Offers Unique OUTbonus and Aims to Compete on Price
OUTsurance Ireland chief executive Peter Broome expressed the company’s dedication to delivering an exceptional and reliable customer experience, backed by their proven track record of serving over 2 million customers in South Africa and Australia. As part of its distinctive offering, OUTsurance will provide an OUTbonus, where customers can receive 10% of their premiums back in cash when they remain claim-free for three years.
Broome emphasized that OUTsurance will compete on price, stating, “We are not going to be the cheapest for everyone, but for those that fit our risk profile they will save money.” Since its “soft launch” a few months ago, OUTsurance customers have saved between €200 and €300 a year on their motor cover.
The company plans to initially offer its products directly to consumers but intends to make them available through brokers at a later stage.
Government and Industry Welcome New Competition
Minister of State with responsibility for Financial Services, Credit Unions and Insurance, Neale Richmond, welcomed the arrival of OUTsurance, saying, “Increasing competition in the insurance market is a goal under this Government’s Action Plan for Insurance Reform, the implementation of which is largely complete, so OUTsurance are very welcome to Ireland.”
IDA Ireland and the Alliance for Insurance Reform also welcomed the new entrant, with the latter emphasizing the need for new competition in the liability market to help address the rising costs faced by businesses, sports, arts, community, and voluntary groups.
The Alliance for Insurance Reform pointed out that liability premiums continue to spiral for these groups, despite a recent Central Bank Report showing that insurer profits increased by 55% in 12 months.
OUTsurance Group's Expansion and Growth Plans
OUTsurance Group, listed on the Johannesburg Securities Exchange, has been operating for more than 25 years and employs over 7,000 people. The company’s entry into the Irish market marks its third international expansion, following successful ventures in South Africa and Australia.
Willem Roos, chief executive of OUTsurance, stated that the company has no immediate plans to enter the sports sponsorship arena in Ireland, as they believe it offers relatively poor value for money compared to purchasing advertising space. Roos also mentioned that OUTsurance aims to take a “high single digit or even double-digit slice of the market” in Ireland.
A Promising Future for Irish Consumers
The launch of OUTsurance in Ireland is expected to bring much-needed competition to the motor and home insurance market, where premiums have been rising in recent months. The company’s unique OUTbonus scheme and commitment to competitive pricing have the potential to benefit Irish consumers.
As OUTsurance continues to invest in Ireland and expand its workforce, it is poised to become a significant player in the Irish insurance market, offering consumers more choice and potentially driving down costs in the sector. The increased competition and innovative offerings brought by OUTsurance may lead to a more dynamic and customer-centric insurance landscape in Ireland.
