Senior Axa representatives will meet with the Minister for Health Mary Harney today to discuss the possibility of the firm entering the Irish health insurance market.
At the moment Axa provides general and car insurance sector in Ireland but is in provides health insurance cover abroad.
The most obvious point of entry for any new health insurer into the Irish market are the 450,000 Bupa Ireland subscribers who are looking for a new insurer following Bupa's decision in December to exit the Irish market.
Bupa statement
However, in a statement this morning, Bupa said there has been no contact from Axa. Bupa said it: "is not in talks with AXA regarding the takeover of its operation in Ireland. BUPA Ireland has always maintained that it seeks a situation where it is allowed to remain solvent and make a modest return."
Bupa withdrew from the Irish market because of risk equalisation which would have required it to pay tens of millions of euro to rivals such as VHI who have subscribers with an older age profile.
Bupa has long stated that risk equalisation makes the Irish health insurance market commercially unattractive
The Government is keen to attract a new entrant into the health insurance market. Bupa was the second largest insurer and following its withdrawal, VHI's dominant position with over 1.5 million subscribers is de facto increased. Vivas has roughly 80,000 subscribers.
