An expert group has been appointed to review the State's health insurance industry following Bupa's decision to exit the market.
The three professionals will carry out a business appraisal of the private health insurance industry, according to Minister for Health Mary Harney.
The group will be chaired by Colm Barrington, managing director of Babcock and Brown Investment Bank in Ireland. It has been asked to report back to Ms Harney by the end of March.
The second member is Dorothea Dowling, group liability manager of CIE and chairwoman of the Personal Injuries Assessment Board. The third appointee to the expert group is Seamus Creedon, who led the financial sector actuarial practice of KPMG in the UK.
This group will consider whether, taking into account the need for community rating, an adequate rate of return is available in the Irish health insurance market for companies in current conditions.
Last month, Bupa Ireland confirmed it planned to pull out of the Irish market after a High Court ruling ordered it to pay a multi-million euro compensation package to its rivals Vhi under the Government's risk equalisation scheme.
Bupa's absence will force more than 440,000 people to change their private health insurance provider. Bupa has said it is not renewing policies but has stressed that it will honour exisiting ones.
The outcome of last month's court case meant Bupa was obliged to reimburse Vhi for having a higher proportion of older and more costly members, as part of risk equalisation.
The British-based company claimed to do so would cost them around €160 million over the next three years. Bupa claims its estimated profit is just €64 million. Bupa claims it was being forced out of the market as it has no prospect of remaining solvent under the system as it currently operates.
Although Bupa has said it is leaving, the company has repeatedly said it would stay in a situation where it is allowed to remain solvent and make a modest return.
However, the Bupa 440,000 policy holders are attracting interest. The Department of Health has already received inquiries from three companies seeking to fill the void left by Bupa.
British insurers Axa and Harlequin, the company who recently bought Mount Carmel Hospital are two of those, while the identity of the third remains unclear.