The government has announced details of a new business review group to determine whether the health insurance sector, as currently regulated, can be profitable.
The report comes after Bupa Ireland pulled out of the health insurance market in December because it claimed the introduction of the controversial risk equalisation scheme - under which it would have to pay tens of millions of euro to rivals such as VHI - has made its business unviable.
The Minister for Health Mary Harney said the three person group will be chaired by Colm Barrington and will include Seamus Creedon and Dorothea Dowling.
Mr Barrington is MD of investment bank Babcock and Brown, Mr Creedon has led the financial sector actuarial practice of KPMG in the UK and Ms Dowling is group liability manager of CIE and chairperson of the Personal Injuries Assessment Board.
Bupa Ireland has 450,000 subscribers and last week it emerged that international insurance company Axa is in talks with the Government regarding plans to enter the health insurance market as a replacement.
The Minister has asked the Group to report back to her by the end of March.
