IE
Ireland's new allure to insurance firms doesn't necessarily mean more jobs
14 January 2010
Ireland is benefiting from a raft of international insurance and re-insurance firms moving their legal domicile to a new low-tax home. However, to suggest that we're about to see a slew of recruitment as a result may be slightly in the realms of fantasy.
So far this year, XL Capital unveiled plans to re-domesticate itself to Ireland from the Cayman Islands, Zurich Insurance transferred continental insurance portfolios here and Willis Group has completed the move of its corporate domicile from Bermuda.
This is due to a combination of Ireland's low corporation tax, the US's crackdown on tax havens, and – as some firms have suggested – the concentration of skilled insurance personnel here.
We could therefore assume that hiring is likely to swiftly follow, but recruiters suggest it would be unwise to hold your breath for this.
Paul Cotter, director of insurance-focused recruiters Cotter Personnel in Dublin, says: "We've seen very little hiring from the international insurance firms that moved here in the last six months. They're small operations and many bring key people with them – I'd say it'll be the summer at the earliest before we see any recruitment."
IDA Ireland, the body which encourages foreign direct investment, has been actively selling the emerald isle's qualities to international corporations, including insurance firms.
However, Kieran Donoghue, head of international financial services at the body, concedes that recruitment from the new insurance players is likely to be muted.
"If you look to the medium term, such moves will be beneficial to Ireland and provide job opportunities when the insurance firms become more established," he adds.
