Quinn Group: 'No problem with community rating'

Investment group Quinn Group, which has reached agreement with Bupa to take over its business in Ireland, has said it has "no issue" with community rating in the insurance market.

"As far as the Quinn Group is concerned, community rating is in place in the health insurance market and will clearly remain so," the group said in a statement this evening.

"The Quinn Group has no issue with this and the VHI claim that our entry to the market puts community rating at risk is absurd."

Regarding the position held by the VHI, Quinn Group said: "The VHI holds over 70% of the market…The level of automatic renewal they enjoy from children following parents and grandparents into VHI is significant and we would be very happy to hold this book.

"In addition, we, as a normal commercial insurance company must set aside 40c of every €1 premium which we write to cover our solvency margin. The VHI is totally exempt from these provisions.

"In response to the VHI’s claim that its costs are higher as a result of the older age profile of its customer base, the Quinn Group wishes to state that it has no issue in providing cover to the same age profile as the VHI.

"In fact, a potential solution to this entire issue might be a proportionate rebalancing of each Health Insurer’s book to reflect the same age profile…We are not seeking any unfair advantage and look forward to working with the Private Health Insurance Advisory Group in order to agree a mechanism whereby all players can compete on a level playing pitch immediately."