Irish Life Health has announced its third price increase in less than 12 months with customers facing an average hike of just under 4 per cent from the start of next year.
The increases, averaging 3.7 per cent, will apply for new customers from January 1st and existing customers from when they renew their policies.
The company pointed to “sustained increases in the cost of delivering healthcare” and the “increased use of more expensive, high-cost drugs” and said it had experienced a 58 per cent rise in such costs since 2021.
It also pointed to “significant increases.. across day-to-day benefit claims as customers are seeking medical advice and diagnostics as they more proactively manage their health”.
Is the cost-of-living crisis over? According to the head of Ibec, it never happened
Can power-hungry data centres help our green energy targets?
‘I could have gone to California. At this rate, I probably would have raised about half a billion dollars’
Christmas tech for kids: great gift ideas with safety features for parental peace of mind
“The sustained demand for healthcare and associated claims cost inflation has regretfully led to the need for increased prices across the health insurance market,” said Irish Life Health’s managing director Ger Davis.
“We understand that customers are dealing with rising prices on a number of fronts and we have taken steps to mitigate our level of increase, and in some instances applied decreases where possible.”
The weeks ahead will be the busiest time of year for health insurance renewals which means many of Irish Life’s customers will be hit with the increases almost immediately.
The Health Insurance Authority (HIA) noted Irish Life Health’s decision and pointed to multiple price increases across all providers over the last 12 month with an average price increase of 11 per cent so far this year.
HIA data suggests the average policy premiums is now €1,712 although it said many policyholders could make savings by shopping around as the key renewals period comes closer.
“We encourage everyone to review their plan before renewing to make sure that they are on the right plan for their current lifestyle and health needs,” the HIA said in a statement.
“We know that many consumers will be facing price increases, but you may be able to find better value by shopping around and thinking about what benefits are most important to you,” it said.
A new health insurance company backed by Aviva Insurance Ireland launched earlier this month promising to offer “meaningful savings” to customers.
The joint venture, Level Health, is led by chief executive Jim Dowdall, a former head of Aviva in Ireland, and chaired by one-time VHI head Oliver Tattan. Aviva Insurance Ireland will underwrite the company’s health policies.
Each of Level Health’s four different plans is cheaper than the nearest comparable plans offered by the three other providers, VHI Healthcare, Laya Health and Irish Life Health, who have a total of 350 different plans between them.
- Sign up for the Business Today newsletter and get the latest business news and commentary in your inbox every weekday morning
- Opt in to Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Join The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
