New insurer aims to shake up Irish home and motor cover market as it vows to compete on price

The company says it will compete on pricing and hopes its successful model used in South Africia and Australia of loyalty discounts will work here too.

It is offering discounts of 10pc on premiums in cash for customers that hold their OUTsurance policy claims-free for three years.

Chief executive Peter Broome, asked whether the company would compete on price, said: “Yes, 100pc, we will compete on price.

“We are not going to be the cheapest for everyone, but for those that fit our risk profile they will save money.”

Today's News in 90 seconds - 13th May 2024

The arrival of competition in the market comes as motor insurance premiums across the market have gone up for eight months in a row, according to Central Statistics Office figures, while home insurance is also rising in cost.

Mr Broome said that since its “soft launch” a few months ago, OUTsurance customers had saved between €200 and €300 a year on their motor cover.

“This market needs competition. We are not going to undercut everyone as that would be silly, but we will be competitive.”

The company employs 70 people at its head office in Cherrywood in Dublin but will grow its headcount to 300 roles over the next three years as part of an overall investment programme of €160m.

The company said it aimed to challenge accepted market norms with the introduction of its ‘OUTbonus’ cash-back scheme.

Government levies and taxes will not form part of the cash-back payment, because the insurer is not allowed to refund these.

It would not offer conventional no-claims discounts but those who needed to move from it would get documents outlining their claims history, Mr Broome said.

He said his company prided itself on its customer service standards at every stage of the customer journey from a quote through to a seamless claims process.

Mr Broome said: “We will change the way people think about car and home insurance with the introduction of something fundamentally new in Ireland – the OUTbonus.

“Customers always pay in, so why shouldn’t they get something out of their insurance when they have not made a claim.

“That’s why with the OUTbonus we will be putting 10pc of customers’ premiums back in their bank account when they have held a policy with us for three years and are claims-free,” Mr Broome said.

Minister of State with responsibility for Financial Services, Credit Unions and Insurance Neale Richmond welcomed the new rival in the insurance market.

“OUTsurance’s commitment to Ireland is clear from their plans to create 230 additional jobs over the next three years, as part of a €160m investment in our economy. This is a very positive sign that Ireland is an attractive destination for international insurance companies, and I look forward to working with OUTsurance over the coming months.”

The insurer is the first provider in more than a decade that is fully licensed and regulated by the Central Bank of Ireland to launch here since Quinn Insurance more than a decade ago.

Revolut offers motor insurance but is not licended in this market, rather it “passports” in here using its Lithuanian banking licence

The OUTsurance Group was established 26 years ago, employs more than 7,000 people and is listed on the Johannesburg Securities Exchange.