BUPA leaving Ireland

My tuppenceworth is that I don't care who takes over Bupa or if anyone does. This consumer will be switching to VHI on March 1st as they have a long track record in the country and, after the Bupa fiasco, I'd prefer to stick with a company who are a bit more reliable, albeit it a bit more expensive.

Also, if Axa or anyone else take over Bupa then I believe that yes, they should take on the risk equalisation payments as well. I can't see why they shouldn't given that they'll have the same younger, less risky customer base.

Glenbhoy said:

Firstly, with the ahem 'exit' of BUPA, that would free up a lot of room in the market for a new entrant, there would more opportunities to generate profit than previously.
The second point is that they obviously feel that BUPA have been guilty of telling little white lies as to the level of payments that will be required for equalisation.

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To be fair, with three insurers, the health insurance market was never exactly a crowded place to begin with. Yes, it makes sense to take over an existing business, but with AXA's existing infrastructure (call centres, offices, experience, etc), they presumably could easily set up when ever they want and I imagine with reasonable start up costs. The figures haven't been mentioned anywhere, but have AXA said how much they' re willing to pay bupa for the business?

As for your second point about the level of payments, [broken link removed]should clarify things. For the period of July 05 to Dec 05, BUPA would have owed €20 million. Across three years that works out at €120 million....

EDIT: Sorry, I don't think the link is working properly. Try this: [broken link removed]

Personnally I am glad to see BUPA's bluff being called. AXA have really spoiled the bullying of the govt by them. I am not saying that risk eq is perfect but BUPA knew about it before they arrived.

BUPA's pirate adventure in the Irish market is over. Good riddance!

Barley said:

....Also, if Axa or anyone else take over Bupa then I believe that yes, they should take on the risk equalisation payments as well. I can't see why they shouldn't given that they'll have the same younger, less risky customer base.

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Mary Harney said as much on Pat Kenny during the week, but from reading today's papers it looks like Axa bizarrely think they should get the 3 years grace even though they plan to buy an 'existing' business.
I don't know, I'm less impressed with Bupa stance over the last week than I was before and will most likely be moving to Vhi.