VHI posts a loss despite rising premiums last year

The insurer paid out €1.68bn in claims for its private health insurance business, an increase of 18% on 2022, as 37,000 new customers took out policies last year

The insurer paid out €1.68bn in claims for its private health insurance business, an increase of 3.2% on 2022. Pic: Eamonn Farrell/RollingNews.ie

Ireland’s largest private healthcare insurer VHI posted a net deficit of €43.4m despite growing premiums last year.

In its annual results, the insurer claimed the jump in premiums was offset by rising costs including high levels of medical inflation, staff wages and elevated energy bills.

Chief executive Brian Walsh said the unprecedented number of claims processed by the VHI, which climbed 18% on the previous year, also contributed to the firms loss last year in a high-cost environment.

“Managing costs while delivering appropriate care is a challenge across global health systems. Irish healthcare is changing, with an ageing population and increasing incidence of chronic disease putting significant pressure on healthcare access and costs,” he said.

“If these challenges are to be addressed, it will require a change in how healthcare is delivered in Ireland,” said Mr Walsh.

The rising number of claims followed a faster-than-anticipated recovery in demand for healthcare following years of restrictions in access and capacity associated with the pandemic, according to the insurer.

The insurer paid out €1.68bn in claims for its private health insurance business, an increase of 18% on 2022, as 37,000 new customers took out policies with the firm last year.

VHI recorded its ninth consecutive year of growth in private medical insurance (PMI) membership. The company has 1.7 million members with private medical insurance for different policies including dental, travel, international health and life insurance.

Meanwhile, a separate report published by the Health Authority Ireland, or HIA, revealed the number of people with health insurance in Ireland has slowed.

The watchdog said price increases throughout 2023 by all three dominant health insurers have driven the slowdown.