A new health insurer, backed by the financier Mr Dermot Desmond and AIB, opened for business today, raising the prospect of a price war that could benefit consumers.
Centura trading under the name Vivas, led by the former Voluntary Health Insurance (VHI) chief executive, Mr Oliver Tattan, will offer a range of health insurance products tailored for different age groups competeting with VHI and BUPA.
Mr Tattan has already made it clear that he intends to compete on price with the existing operators. Sources believe Vivas's entry to the market will push prices down.
Since 1996 the State-owned operator and British-owned BUPA have had the Republic's health insurance market to themselves.
The Irish Financial Services Regulatory Authority (IFSRA) said last week that it had given Centura the licences it needed to sell health insurance. Today, the Health Insurance Authority (HIA) formally agreed to the issuing of a certificate to allow Vivas to begin to sell policies.
Commenting on the emergence of this new market entrant, the HIA Chief Executive, Mr Dermot Ryan, said the Authority would welcome any increase in competition.