DUBLIN (Bloomberg) — Ireland will “inevitably” attract more companies selling car insurance after changes in market regulation improved the profitability of the business, Transport Minister Martin Cullen said.Cullen made the remarks when asked about the prospect of greater competition at a committee meeting of lawmakers in Dublin this week. He wasn’t more specific.

Irish insurers are benefiting from annual economic growth that has averaged more than five percent over the past five years, fuelling demand for car and home insurance.

The government has introduced anti-fraud measures and tougher penalties for drunk drivers to help cut the frequency of road deaths and the cost of insurance claims.

Ireland’s property and casualty insurance market is dominated by overseas companies, with the UK’s Aviva Plc and Germany’s Allianz SE holding the top spots, according to 2005 gross written premium figures from the Irish Insurance Federation. FBD Holdings Plc, the only general insurer on the Irish bourse, ranks sixth.

Ireland’s financial regulator is considering applications from six insurance companies seeking to set up business in the country, it said in September. Two reinsurers, one life insurer and three non-life insurers have sought regulatory approval, the Dublin-based regulator said at the time.