Aviva Health Insurance is to increase premiums by an average of 12.7 per cent from March 23rd.

The insurer said premiums for a range of plans would increase by an average of 12.7 per cent before tax relief. There will be no increase in the Value Focus plan which remains at €549 net per adult and Day2Day Focus which costs €769 net per adult.

The insurer said the hike in premiums was a consequence of new public bed charges, an increase in the risk equalisation levy and a rise in the cost of claims.

"The Government and the industry need to work together to find ways of keeping young people in the market. Unless we have young and healthy members to share the cost of the higher claims of older members, premiums will continue to rise, " Aviva chief executive Alison Burns said.