Growing concerns over the competitiveness of the City of London means the number of insurance firms in the UK is likely to tumble – and Dublin is being touted as an attractive alternative.

A rather hefty 80% of respondents to a survey of UK firms by the Association of British Insurers are predicting the number of players in the British market will fall in the near future.

One example of an insurer to already do move to Ireland is RSA, which relocated its reinsurance business to Dublin. Similarly, Beazley Group, the London-based insurance firm, chose the Irish capital as a destination for a new holding company earlier this year.

Everest Reinsurance has just set up an operation in Ireland, which will create five “highly-skilled” jobs. Willis, the world’s third largest insurance firm, is also planning to relocate its global HQ from Bermuda to Dublin.

Sarah Goddard, chief executive officer of the Dublin International Insurance & Management Association (DIMA), believes Ireland can benefit from the perceived unattractiveness of the UK.

“The cost base of Ireland has come down recently, which is no bad thing as it has got expensive and it’s now more competitive,” she says. “There’s a marketplace of highly-skilled professionals with many years’ experience and there’s a will from the government to expand the contribution of international financial services to the overall economy,” she says.

Insurance remains one of the key areas of foreign direct investment by financial services firms, according to Kieran Donoghue, head of financial services at IDA Ireland.

“We’re continuing to win some very interesting investments,” he says.

Still, while any job creation is welcome at this time, the numbers are relatively diminutive, says one headhunter.

“It’s largely underwriting or compliance positions, as new international firms tend to bring their own senior management,” says Paul Cotter, director of Cotter Personnel, “But usually no more than two or three at a time.”

New statistics released by the Irish Financial Regulator show that 13,021 people were employed in the insurance industry in 2008, up from 12,339 in 2007.