VHI sees increase in profits and members as claims fall

Telemedicine and remote supports used during pandemic will have a role to play in the future

VHI took in €1.5bn in premius last year. 

Health insurance claims paid out by VHI fell by 17% last year due to the impact of the pandemic, with the State-owned insurer recording profits of almost €53m.

Ireland's largest insurer also grew its membership for the sixth consecutive year adding more than 3,00 new policies. 

VHI now has 1.13m members.

Gross earned premiums for private health insurance in 2020 came to €1.5bn compared with €1.41bn in 2019.

Total claims paid in 2020 amounted to €1.14bn, compared to €1.39bn a year previously. 

The insurer said €265m was returned to customers in the form of a premium waiver.

“Our results for the past year were solid with revenue and customer numbers up," VHI chief executive John O'Dwyer said.

"As VHI exists solely to meet the healthcare needs of our customers, we initiated an immediate response to the drop in claims by introducing a waiver of premium."

The response to the pandemic and treatment of patients with Covid took priority last year. Cancellation and deferral of appointments, screenings, and procedures directly impacted many of VHI's customers and patients. 

"Public health took centre stage in a way that it never has before, and all of us had a responsibility to protect the health and wellbeing of others. This informed our approach to our customers as well as our staff," Mr O'Dwyer said.

"We worked closely with hospitals, consultants, and their representative groups to help patients safely navigate the pandemic. 

"We provided clinical services in new settings as well as virtually and continued to give our customers access to the widest range of treatments, drugs, and procedures possible.”

At the end of December 2020, VHI had free reserves of €773m, compared to the previous year’s €701m.

Mr O'Dwyer said there is much uncertainty about the short, medium, and long-term impact of Covid on the healthcare sector, but said there are a number of positives that can be drawn from the experience of the past year. 

"Innovative healthcare solutions such as telemedicine and remote supports were delivered and proved to be very effective in many cases. It is clear that they will have a role to play in the provision of healthcare services into the future."