Setting up an Insurance Company

studentDan

Hi All,

I'm new to this site and I am hoping you can help me. I need to find out how to set up an insurance company and what requirements I would need to do so. Application forms ETC

Lads any help would be great.

Thanks

Merrion

The insurance industry is a highly regulated government enforced cartel.
You would need a license from the Irish Financial Services Regulator

You also need considerable capital as there is a required risk ratio (how much money you have vs how much total risk you take on) which is quite high.

There are other companies that will take risk of your hands (reinsurers) to help with this requirement but they charge commission (can be as high as 30% for high risk business)

kluivert

Good luck with that.

If you are very determined and very smart then i wish you the very best of luck.

As with the above post you will need to get a license.

onedmc

Do you mean set up as an Insurance Broker or do you mean an Insurance Company.

If its the latter then forget it, just like banks you need capital reserves(or access to), not sure how much but its probable alot less then you think. I think you only need about 10,000,000 for a bank.

Nermal

onedmc wrote:

Do you mean set up as an Insurance Broker or do you mean an Insurance Company.

If its the latter then forget it, just like banks you need capital reserves(or access to), not sure how much but its probable alot less then you think. I think you only need about 10,000,000 for a bank.

you need less, 600K or thereabouts for an insurance company, and the ability to convince the minister to give you a licence. obviously there are rules about the claim reserves you have to have etc.

but right now ireland is about the most profitable place to transact insurance... companies are paying out 60-70% of premium in claims, european average is over 90.

Merrion

If you are doing this as an academic exercise then follow up with the IFSR and also look through the business section in the library in the Ilac centre.

If you are doing this as a business idea I'd say there are probably easier markets to get in to. Retail insurance in Ireland is a cartel and the profit margins in specialist risk insurance are too low to justify the opportunity cost of all the capital that has to be kept aside to meet regulatory requirements.

antoinolachtnai

What are you interested in? The 'retail' side, or the 'wholesale' side, taking on risk? The minimum stake for getting involved in Lloyds as a name isn't fantastically high (not that you should consider that without taking extensive legal and financial advice).

It's a pretty complicated business ...