Section 5 is concerned with the arrangements in place to facilitate and encourage the entry of new insurers into the market to provide greater competition and choice for consumers. The legislation provides for insurance undertakings which have not yet commenced business to avail of a three year exemption from risk equalisation. The purpose of this is to allow new insurers to establish a critical mass of customers and recover start-up costs before being liable to make any payments in respect of risk equalisation that could arise.