South African insurer OUTsurance is set to add competitive pressure in the Irish home and motor insurance market, where premiums have risen lately. The company aims to compete on pricing and hopes its successful model of offering loyalty discounts, used in South Africa and Australia, will work in Ireland too.
OUTsurance is offering discounts of 10% on premiums in cash for customers who hold their OUTsurance policy claims-free for three years. Chief Executive Peter Broome, when asked whether the company would compete on price, said, “Yes, 100%, we will compete on price.”
He added, “We are not going to be the cheapest for everyone, but for those that fit our risk profile, they will save money.”
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 costs are also rising.
Broome stated 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,” he said.
The company employs 70 people at its head office in Cherrywood, Dublin, but plans to grow its headcount to 300 roles over the next three years as part of an overall investment program of €160 million.
OUTsurance aims 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, as the insurer is not allowed to refund these.
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