Aviva backs health insurance start-up that plans to enter the market this year

Meanwhile, insurance broker with Totalhealthcover, part of the Lockton group, Dermot Goode said Aviva’s decision to back the health insurance start-up “is welcome news for all consumers who are struggling with soaring health insurance costs”. Photo Mark Stedman/Photocall Ireland

Aviva said it plans to launch a new private healthcare insurance start-up with former former VHI boss Oliver Tattan, and other senior executives, following an investment which is subject to regulatory approval.

Aviva is seeking a 50% share in a new private health insurance business and the insurer said it will commence selling health insurance through it in the second half of 2024 if the deal is approved by the Health Insurance Authority (HIA).

The watchdog said it was contacted by a new insurer “some time ago to discuss their intention to join the market”. “Our aim in all engagement is to deliver a competitive market, value for consumers and to give full consideration to future needs,” said the watchdog.

Chief executive of Aviva Insurance Ireland Declan O’Rourke said the investment “demonstrates Aviva’s commitment to continue to grow in Ireland as a leading financial services provider”.

Aviva has decided to expand its offering during a difficult time for health insurers.

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 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.

Meanwhile, insurance broker with Totalhealthcover, part of the Lockton group, Dermot Goode said Aviva’s decision to back the health insurance start-up “is welcome news for all consumers who are struggling with soaring health insurance costs”.

“Ultimately, there’s nothing like extra competition to drive better value for all consumers and employers,” he said.