The insurance sector is a highly controlled government-enforced syndicate. First off, you will require a license issued by the Irish Financial Services Regulator. Also, you’ll require a massive amount of capital because there is a needed risk ratio which is really high. Some companies can alleviate the risk for you (reinsurers) to aid with this prerequisite but they impose a levy (can reach up to 30% for high-risk companies).
Ireland provides a great investment opportunity since the local economy is growing rapidly. Several industries in Ireland testified to experiencing considerable profit margins in the first two months of 2016; if you are a foreign investor and are thinking about establishing an insurance company in Ireland, you shouldn’t fear as the financial sector is very robust and safe and is governed by a predetermined set of guidelines and legislations.
The company formation experts at registeracompanyinireland.com can provide their expertise for the proper registration of an insurance company in Ireland. In this read, we will look at the things you need to consider before you can begin trading legally.
What Kind of Insurance Company Do You Want to Set-Up?
The Insurance sector is very competitive and the best way you can ascertain your survival is by delivering expert insurance products for niche fields. However, before that, you’ll have to make up your mind if you want to be an insurance underwriter, Managing General Agent, or an insurance broker.
Do I Have to Register to Establish an Insurance Company?
Regardless if you want to be an underwriter, an MGA or a broker, if you wish to deliver insurance services in Ireland, you are required to register your company. Entrepreneurs are given the freedom to register their companies under different legal entities per Irish commercial laws.
Subsequently, entrepreneurs can incorporate a limited enterprise, whereby the shares are owned by the business’ shareholders. Irish law allows for 5 kinds of limited companies:
- private company limited by shares (LTD) – liability of the stakeholders is limited to the amount of the dividends they have ownership of in the enterprise;
- designated activity company (DAC) – must have not less than two directors and a member maximum not exceeding 149 persons;
- designated activity company limited by guarantee – liability of the investors is restricted to the number of dividends they have ownership of in the enterprise, in addition to the percentage of business assets they have contributed to;
- company limited by guarantee – liability is restricted to the contributions made up to a certain amount of money as stipulated in the memorandum;
- public limited company (PLC) – The capital share amount must be at least EUR 25,000, from which 25% should be credited at the incorporation of the company.
Insurance Law in Ireland
The Register a Company in Ireland agents can help you navigate other aspects of the registration process and can provide you with an honest assessment and recommendation on the insurance legislation that best suits your situation.
Ireland provides a wide range of insurance services aimed at companies and private persons. They can for the most part be classified into:
General insurance, encompasses things such as vehicles, property, pets etc. General insurance can also include unforeseeable risks such as cyber security and climate change.
Life insurance, gives the beneficiaries a lump sum amount of money or scheduled payments if the person dies or provides coverage for pension funds.
When you decide that you want to set up an insurance company in Ireland, the kind of insurance you want to sell should be at the top of your to-do list. You also have the option of changing your services and products as the business grows.
Knowing how to start and run a successful insurance company is never going to be an easy endeavour. Ireland offers a stable financial market and among the most verifiable proofs of this is the relocation of international insurance providers which provide their insurance services across Ireland. The Central Bank of Ireland is the regulatory entity that governs the sector by imposing insurance directives stipulated by the European Union.
If you want to get more info on the best insurance providers in Ireland, please get in touch with the Register a Company in Ireland representatives to register your Irish insurance business and get going!